ASL - ANDEAN SILVER LIMITED
Investment Thesis
Classic LS epithermal vein-breccia system with bonanza-grade shoots — headline 25,340 g/t AgEq is genuinely exceptional and consistent with high-grade LS systems like Fresnillo or Pirquitas. Critical caveat: intercepts are narrow (0.8–3.3m downhole) and true widths are not disclosed, so vein dip corrections could meaningfully reduce the grade-width product. Continuity across Trinidad (800m strike) and Delia SE is encouraging for M&I conversion.
What No One Else Is Seeing
2.4m @ 15,558 g/t AgEq (1,882 g/t Ag, 164.8 g/t Au) — CBD...
Also: 3.1m @ 3,356 g/t AgEq (Delia SE); 3.0m @ 889 g/t AgEq; multiple intercepts 300–1,100 g/t AgEq across Trinidad, Temer, Coyita. Resource: 20Mt @ 211 g/t AgEq = 136Moz AgEq (Indicated + Inferred, JORC 2012, June 2026)
Cerro Bayo Project, Aysen Region, Chile
Classic LS epithermal vein-breccia system with bonanza-grade shoots — headline 25,340 g/t AgEq is genuinely exceptional and consistent with high-grade LS systems like Fresnillo or Pirquitas. Critical caveat: intercepts are narrow (0.8–3.3m downhole) and true widths are not disclosed, so vein dip corrections could meaningfully reduce the grade-width product. Continuity across Trinidad (800m strike) and Delia SE is encouraging for M&I conversion.
Fair Value Assessment
136Moz AgEq at a developer in-situ multiple of ~A$3.50–4.00/oz AgEq implies A$476–544M, broadly in line with the current A$455M market cap. Catalysts are feasibility study commencement and resource growth drilling at Guanaco/Raul/Marcela — success there could re-rate; but the stock is not materially cheap today.
Key Concerns
True widths undisclosed for all intercepts (narrow epithermal veins routinely yield 40–60% true-width corrections); resource is predominantly Inferred; Chile jurisdictional/permitting risk; no Ore Reserve or mine schedule yet.
Key Drill Intercepts
| Hole | From | Width | Grade | Comment |
|---|---|---|---|---|
| Best | - | - | 2.4m @ 15 | 3.1m @ 3,356 g/t AgEq (Delia SE); 3.0m @ 889 g/t AgEq; multiple intercepts 300–1,100 g/t AgEq across Trinidad, Temer, Coyita |
Valuation & Price Target
136Moz AgEq at a developer in-situ multiple of ~A$3.50–4.00/oz AgEq implies A$476–544M, broadly in line with the current A$455M market cap. Catalysts are feasibility study commencement and resource growth drilling at Guanaco/Raul/Marcela — success there could re-rate; but the stock is not materially cheap today.
Key Risks
True widths undisclosed for all intercepts (narrow epithermal veins routinely yield 40–60% true-width corrections); resource is predominantly Inferred; Chile jurisdictional/permitting risk; no Ore Reserve or mine schedule yet.
Key Catalysts
| Date | Event |
|---|---|
| Near-term | Pending drill results / assays |
| Medium-term | Resource estimate update |
World-class vein grades but fully priced — the re-rating thesis hinges on resource growth and M&I conversion, not today's drill results.
This report is prepared by Clubroom Research for informational purposes only. It does not constitute financial advice or a recommendation to buy, sell, or hold any security. All opinions and estimates are subject to change without notice. Always do your own research and consult a licensed financial adviser before making investment decisions. Past performance is not indicative of future results.
AI-Generated Analysis - This report was produced using Clubroom Stocks' proprietary AI engine, built on our own curated databases, custom training pipelines, and specialist prompting frameworks developed exclusively for ASX resource sector analysis. This is not financial advice. Always do your own research before making investment decisions.
Mine Sites(2)
Avg score: 3.0/5.0
Rating History — 12 alerts
All returns measured from alert price as Day 0
Day 1 = 1 trading day after alert. Day 5 = 5 trading days. Day 20 = 20 trading days. Live = current price vs alert price. Each alert tracks independently — a re-rating starts fresh tracking from the new alert price.