Can Advance Metals Turn Its Mexican Acquisitions Into Profitable Mines?

Strategic Expansion in Mexico

Advance Metals Limited (ASX, AVM) has taken a major step forward in its growth strategy by securing the right to earn a 100% interest in the Guadalupe y Calvo (GyC) gold-silver project in Chihuahua, Mexico. This acquisition positions the company as a significant player in the prolific Sierra Madre Occidental Volcanic Belt, a region renowned for its rich precious metals deposits. The GyC project boasts a Foreign Estimate of 9.5 million tonnes at 2.7 grams per tonne gold-equivalent, translating to approximately 60.6 million ounces of silver-equivalent mineralisation, including a high-grade underground component.

With nearly 86,000 metres of historical drilling and a long mining history dating back to the 19th century, the project offers substantial upside potential. Advance is actively pursuing government and community approvals to commence an extensive exploration program aimed at unlocking further value.

Drilling Success at Yoquivo

Complementing the Guadalupe y Calvo acquisition, Advance completed its maiden diamond drilling campaign at the Yoquivo Silver-Gold Project, also in Chihuahua. The eight-hole program totaling over 3,100 metres has yielded encouraging results, including a standout intersection of 7.6 metres at 116 grams per tonne silver-equivalent from 299 metres depth. Notably, one interval returned an exceptional 2,063 grams per tonne silver-equivalent over 1.11 metres, underscoring the high-grade nature of the mineralisation.

Further regional sampling uncovered new high-grade vein structures in previously unmapped areas, with rock chip assays reaching up to 1,594 grams per tonne silver-equivalent. The company has also identified over 6,000 metres of unassayed core from prior drilling, now being resampled to potentially expand the resource base.

Gavilanes Acquisition and Exploration Plans

Earlier in 2025, Advance entered into an agreement to acquire 100% of the Gavilanes Silver Project in Durango, Mexico, a district known for its prolific silver deposits. The transaction was settled during the quarter, and the project carries a Foreign Estimate of 2.83 million tonnes at 245.6 grams per tonne silver-equivalent, equating to 22.4 million ounces. Despite limited drilling to date, the project hosts multiple mineralised structures with significant exploration upside. Advance’s technical team is preparing an initial exploration program to test these targets.

Australian Gold Projects Show Promise

In Victoria, Australia, Advance continued exploration at the Myrtleford and Beaufort gold projects. Recent drilling at the Happy Valley deposit returned strong gold intersections, including 9.4 metres at 18.6 grams per tonne gold, with a high-grade zone of 1.2 metres at 62.2 grams per tonne. Re-analysis of previous drill samples upgraded grades significantly, and visible gold was intersected in a deep hole, suggesting robust vertical continuity of the mineralised system.

Capital Raise and Board Refresh

To fund its ambitious exploration programs, Advance successfully completed a $13 million placement to institutional and sophisticated investors, including cornerstone commitments from Jupiter Asset Management and Tribeca Investment Partners. This capital injection provides the financial runway to advance drilling campaigns across its Mexican and Australian projects.

Corporate governance was also strengthened with the appointment of veteran mining executive David O’Connor as Non-Executive Chairman. The company established a Mexican Advisory Board to leverage local expertise, further supporting its growth ambitions in the region.