Maiden drilling returns 33.9m at 220g/t Ag, including 6.2m at 718g/t Ag, supporting Advance’s strategy for rapid growth of the high grade Gavilanes silver system.

Highlights:

• First diamond drill hole (GV-26-001) at Advance’s 100%-owned Gavilanes Project in Mexico has returned a very broad zone of high grade silver mineralisation (Figure 1):
  • 33.9m at 220g/t Ag from 117.6m,
  • incl. 6.2m at 718g/t Ag from 133m
• Increasing base metals and gold were also seen in association with strong silver mineralisation deeper in the hole, including:
  • 3.3 metres at 270g/t Ag, 0.2g/t Au, 0.7% Cu, 0.7% Pb & 1.1% Zn from 164.6m,
  • incl. 1.65 metres at 394g/t Ag, 0.4g/t Au, 1.1% Cu, 1.1% Pb & 1.7% Zn from 166.25m
• Resource expansion drilling is ongoing, with assays pending for hole GV-26-002 and a third hole in progress
• The program is targeting major extensions to the existing high grade system, which hosts a Foreign Estimate1 of 22.4Moz AgEq at 246g/t AgEq2,3, with current drilling expected to support a JORC Resource upgrade later in 2026

¹ The Foreign Estimate of mineralisation mentioned in this announcement are not compliant with the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (2012 JORC Code) and is a “Foreign Estimate”. A Competent Person (under ASX Listing Rules) has not yet done sufficient work to classify the Foreign Estimate as Mineral Resources or Ore Reserves in accordance with the 2012 JORC Code. It is uncertain that following evaluation and/or further exploration work the Foreign Estimate will be able to be reported as Mineral Resources or Ore Reserves in accordance with the JORC Code 2012.Reserves in accordance with the 2012 JORC Code. It is uncertain that following evaluation and/or further exploration work the Foreign Estimate will be able to be reported as Mineral Resources or Ore Reserves in accordance with the JORC Code 2012.
² ASX announcement – 6 January 2025 “Advance Metals to Acquire High Grade Gold Project in Victoria and High Grade Silver Project in Mexico”
³ The Gavilanes silver equivalent was derived based on assumed metallurgical recoveries of similar deposits by the author of the NI43-101 technical document Derick Unger. The formula used is AgEq g/t = Ag g/t + Au g/t* 70.175 + Cu ppm*0.00658 + Pb ppm*0.00188 + Zn ppm*0.00188, where assumed recoveries for Ag, Au, Cu, Pb and Zn are 96%, 80%, 50%, 50% & 50% respectively, and prices in USD are $19.00/oz, $1,600/oz, $3.50/lb, $1.00/lb and $1.00/lb respectively. In AVM’s opinion all elements that are included in the metal equivalency calculation have reasonable potential to be recovered and sold.

Commenting on the first results from the Company’s drilling program at Gavilanes, Advance’s

Managing Director & CEO Dr Adam McKinnon said:

“This is an excellent first result from our maiden drilling program at Gavilanes and provides early validation of the strategy we outlined when drilling commenced in May. GV-26-001 has intersected a broad zone of high grade silver mineralisation, including 6.2m at 718g/t Ag, in an area where we are targeting extensions to the known high grade system.”

“Gavilanes already hosts a substantial high grade Foreign Estimate, and these first assays strengthen our confidence in the project’s potential to support a planned JORC Resource upgrade later this year. With assays pending from GV-26-002, a third hole in progress and historic core sampling also planned, we see strong potential for continued news flow from Gavilanes.”

“The strong initial results at Gavilanes have come immediately after a highly successful drilling program at our Yoquivo Project, where the endowment has doubled to 33Moz silver-equivalent. Both Projects are now presenting an unparalleled growth and development opportunity for Advance, with significant additional near-term value to be unlocked as we continue to execute the growth strategy across our Mexican portfolio.”

Advance Metals Limited (ASX:AVM)(“Advance” or the “Company”) is pleased to announce that the first diamond drill hole from the maiden program at its 100%-owned Gavilanes Silver Project in western Durango, Mexico has returned a very broad zone of high grade silver mineralisation.

Gavilanes hosts an existing Foreign Estimate1 comprising 2.83Mt at 246g/t AgEq, containing 22.4Moz AgEq2,3. Advance’s first drilling at the site was designed to target down dip (GV-26-001) and southerly strike extensions (GV-26-002 & 003) to the high grade Descubridora structure (Figures 2 & 3).

The Company’s first hole, GV-26-001, was drilled to a depth of 276 metres and intersected a broad zone of high grade silver mineralisation approximately 80 metres down dip to the west of the high grade zone previously defined in historic hole SCHN-122 (Figures 1 & 4):

• GV-26-001   33.9m at 220g/t Ag from 117.6m,
  • incl. 6.2m at 718g/t Ag from 133m

Deeper in the hole, multiple high grade silver intersections are also associated with increasing base metals and gold (Figures 4 & 5), including:

• GV-26-001   3.3 metres at 270g/t Ag, 0.2g/t Au, 0.7% Cu, 0.7% Pb & 1.1% Zn from 164.6m,
  • incl. 1.65 metres at 394g/t Ag, 0.4g/t Au, 1.1% Cu, 1.1% Pb & 1.7% Zn from 166.25m

• 0.7 metres at 44g/t Ag, 0.1g/t Au, 1.1% Cu, 0.3% Pb & 0.3% Zn from 183.8m
• 1.35 metres at 69g/t Ag, 0.1g/t Au, 0.8% Cu, 0.1% Pb & 0.1% Zn from 219.5m

Diamond drill hole GV-26-002 was recently completed to a depth of 291 metres, and was designed to test southern extension of the know system (see Figure 2). Assays are pending for this hole, with drilling underway on a third extensional hole (GV-26-003) located on the same drill section. The full program is expected to comprise 15 to 18 new diamond holes totalling up to 4,500 metres.

The Company is updating the geological model for the Gavilanes Project, incorporating new lithological and geochemical data generated from each hole. This new model, together with assay data from the full diamond drilling program, is expected to support a JORC Mineral Resource upgrade for the Gavilanes Project, targeted for completion in early Q4 CY2026.

Next Steps

• Receipt of assays from GV-26-002, which tested the southern extension of the known Gavilanes mineralised system.
• Completion of GV-26-003, targeting further extensional mineralisation along the same drill section.
• Progress the broader maiden diamond drilling program, comprising 15 to 18 holes for up to 4,500 metres.
• Incorporate new lithological, structural, and geochemical data into an updated geological model for Gavilanes.
• Review and sample selected historic drill core to generate additional low cost geological and assay data.
• Use results from new drilling and historic core sampling to support a planned JORC Mineral Resource upgrade, targeted for early Q4 CY2026.
• Continue testing priority targets outside the current Foreign Estimate area to assess the broader scale potential of the Gavilanes system.

For further information:

Dr Adam McKinnon
Managing Director and CEO
Advance Metals Limited
+61 (0) 411 028 958
[email protected]
www.advancemetals.com.au

Jane Morgan
Investor & Media Relations Manager
Advance Metals Limited
+ 61 (0) 405 555 618
[email protected]

This announcement has been authorised for release by the Board of Advance Metals Limited.

Competent Person’s Statement

The information in this report concerning data and exploration results has been compiled by Dr. Adam McKinnon, a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy (AusIMM). Dr. McKinnon is the Managing Director of Advance Metals Limited and possesses the relevant expertise in the style of mineralisation, type of deposit under evaluation, and the associated activities, qualifying him as a Competent Person under the guidelines of the 2012 Edition of the ‘Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Dr. McKinnon has approved the inclusion of this information in the report in the form and context in which it appears.

With regard to references to prior announcements of Foreign Estimates and in particular the ASX announcement dated 6 January 2025, “Advance Metals to Acquire High Grade Gold Project in Victoria and High Grade Silver Project in Mexico”, the Competent Person for the information and data contained in that Announcement was Mr Joel Sidoruk and JORC Table 1 disclosures are contained therein.

The Company is not aware of any new information or data that materially affects the information and data included in the Announcement. In addition, all material assumptions and technical parameters underpinning the estimates in the Announcement have not changed. The Company confirms that the form and context in which the Competent Person findings are presented have not been materially modified from the original market announcement.

Cautionary Statement on Foreign Estimates

The Foreign Estimates of mineralisation mentioned in this announcement are not compliant with the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (2012 JORC Code) and is a “Foreign Estimate”. A Competent Person (under ASX Listing Rules) has not yet done sufficient work to classify the Foreign Estimate as Mineral Resources or Ore Reserves in accordance with the 2012 JORC Code. It is uncertain that following evaluation and/or further exploration work the Foreign Estimate will be able to be reported as Mineral Resources or Ore Reserves in accordance with the JORC Code 2012.

Forward-Looking Statements

Certain statements in this announcement relate to the future, including forward-looking statements relating to the Company and its business (including its projects). Forward-looking statements include, but are not limited to, statements concerning Advance Metals Limited planned exploration program(s) and other statements that are not historical facts. When used in this document, words such as “could,” “plan,” “estimate,” “expect,” “intend,” “may”, “potential,” “should,” and similar expressions are forward looking statements.

These forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such statements. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement and deviations are both normal and to be expected. Neither the Company, its officers nor any other person gives any representation, assurance or guarantee that the events or other matters expressed or implied in any forward-looking statements will actually occur. You are cautioned not to place undue reliance on those statements.

Table 1. Details for Advance Metals’ recent diamond drill holes reported in this release (coordinates WGS84/UTM Zone 13N).

Note: *Hole GV-26-003 is ongoing or planned to a greater depth.

*Proposed depth, drilling currently in progress.

Table 2. Significant intersections for hole GV-26-001. Intervals are defined based on a nominal cut-off grade of 25g/t Ag and/or 0.5% Cu.

Source: Advance Metals Corp.
Original Press Release: https://app.sharelinktechnologies.com/announcement-preview/asx/bc9884b4310b44a4f718feffebfe485d