Advance Metals Secures Earn-In Deal over High-Grade Guadalupe Y Calvo Gold-Silver Project

Advance Metals (ASX: AVM) has secured an agreement with Canadian miner and explorer Endeavour Silver to earn a 100% interest over the next four years in the high-grade Guadalupe y Calvo gold-silver project in Mexico, in a deal that will see Advance become a major participant in the region.

Guadalupe y Calvo sits in the prolific Sierra Madre Occidental Volcanic Belt in the south-western part of Chihuahua state, approximately 245 kilometres south-southeast of Advance’s wholly-owned Yoquivo silver-gold project and 80km southwest of the high-grade Copalquin gold-silver project Mithril Silver and Gold (ASX: MTH) is currently exploring.

Both gold and silver have been mined in the area since the early 1800s, with historical production estimated at over 2Moz of gold and 31Moz of silver.

Resource Estimate

In 2021, Endeavour published an indicated and foreign estimate for the project based on 217 drill holes of 9.5 million tonnes at 2.7g/t gold equivalent (AuEq) for 816,000 ounces AuEq (60.6Moz AgEq), including a high-grade indicated and inferred underground component of 3.05Mt at 5g/t AuEq for 494,000oz AuEq.

In consideration for the earn-in, Advance will pay Endeavour a signing fee of US$50,000 and US$50,000 worth of shares, plus conditional staged payments equating to $4 million in cash and scrip over four years.

Advance will act as operator of Guadalupe y Calvo throughout the earn-in period and grant Endeavour a 2% net smelter return on all production.

Drilling Results

Guadalupe y Calvo has seen 86,000 metres of historical resource definition and exploration drilling and Advance has identified significant upside potential in multiple areas.

Strong intersections have included 9m at 4.7g/t gold and 85g/t silver from 13m, 6.5m at 3.6g/t gold and 3,646g/t silver from 38.5m and 3m at 20.3g/t gold and 171g/t silver from 70m.

Other best results have been 15m at 16.8g/t gold and 373g/t silver from 36m, 3m at 14g/t gold and 336g/t silver from 50m and 1.45m at 23.4g/t gold and 1105g/t silver from 86.6m.

High-Potential Asset

Advance managing director Dr Adam McKinnon said the earn-in would add a new, high-potential asset to the company’s precious metals portfolio.

“The acquisition of Guadalupe y Calvo is transformational for Advance and positions us as the largest ASX-listed participant in the silver-gold exploration and development space in Mexico, with enormous upside potential from all three of our projects,” he said.

“The project will add significant high-grade metals to our portfolio at a time of very strong demand and prices and places us in a fantastic position to leverage off our operating expertise, existing infrastructure and established team in Mexico.”