Advance Metals Acquires 22.4M Oz Silver Equivalent and High-Grade Victorian Gold Assets

Strategic Acquisitions in High-Grade Precious Metals

Advance Metals Limited (ASX: AVM) has made a significant leap in its exploration portfolio by entering binding agreements to acquire an 80% interest in the Myrtleford and Beaufort Gold Projects in Victoria, Australia, and a 100% interest in the Gavilanes Silver Project in Durango, Mexico. These acquisitions position Advance Metals at the forefront of high-grade precious metals exploration amid a backdrop of record gold and silver prices.

The Victorian projects, acquired via a joint venture with Serra Energy Metals Corp, are situated in the heart of the Victorian Goldfields, a globally renowned gold-producing region that has historically yielded over 80 million ounces of gold. Myrtleford and Beaufort boast extensive mineralised tenements with numerous historic underground workings, many of which remain underexplored with modern techniques. Recent drilling at Myrtleford has confirmed exceptional high-grade gold mineralisation, including intercepts such as 11.5 meters at 160.4 g/t gold and 0.6 meters at 2430 g/t gold, underscoring the projects’ significant upside potential.

Gavilanes Silver Project: A High-Grade Mexican Asset

Simultaneously, Advance Metals has agreed to acquire 100% ownership of the Gavilanes Silver Project, located in the prolific Dimas district of Durango, Mexico. The project hosts a substantial Foreign Estimate of 22.4 million ounces silver equivalent at an average grade of 245.6 g/t AgEq, based on over 9,600 meters of diamond drilling. The mineralisation is structurally controlled, with multiple veins and breccia zones exhibiting high-grade silver and associated base metals. Historic drilling highlights include intercepts of 3.3 meters at 2540 g/t silver and 6.3 meters at 2016 g/t silver, indicating robust silver grades and exploration upside.

While the Foreign Estimate is not yet JORC-compliant and requires further verification and drilling, it provides a strong foundation for Advance Metals’ exploration strategy in Mexico. The company plans to undertake confirmatory drilling and step-out programs to expand the resource base and advance the project towards a maiden JORC resource.

Exploration and Development Outlook

Advance Metals is actively progressing exploration activities across its new and existing assets. In Victoria, the company is working to secure exploration permits to conduct low-impact and confirmatory drilling programs at Myrtleford and Beaufort, aiming to validate historic high-grade results and identify new mineralisation. In Mexico, permitting efforts are underway for maiden drilling at both the Gavilanes and Yoquivo Silver Projects, with the goal of converting foreign estimates into JORC-compliant resources.

The company’s strategic acquisitions and exploration plans align with its broader objective to build a world-class portfolio of high-grade precious metals projects. Positioned in tier-one jurisdictions with proven mineral endowment, these projects offer compelling value and growth potential for shareholders.

Advance Metals’ Non-Executive Chair, Craig Stranger, highlighted the value proposition of acquiring both Victorian gold and Mexican silver projects together, reinforcing the company’s high-grade exploration focus and commitment to advancing these assets promptly.

Transaction and Financial Terms

The Myrtleford and Beaufort acquisition involves a staged share consideration totaling approximately C$3 million, subject to regulatory approvals and an ASX waiver to issue shares outside standard timeframes. Advance Metals will hold an 80% interest and operate the joint venture, with Serra retaining 20%. A 1% net smelter royalty will be granted to Serra on production.

The Gavilanes acquisition includes a US$50,000 cash payment, 16.8 million shares, and 33.6 million performance rights subject to resource milestones, alongside a 2% net smelter royalty payable to the vendor. The company commits to a minimum US$2 million exploration expenditure over five years to advance the project.

These deals are structured to balance risk and reward, providing Advance Metals with significant exposure to high-grade precious metals while managing capital deployment prudently.