Silver near $70 drives Andean Silver restart plan
Silver prices near $70 per ounce have accelerated the restart timeline for Andean Silver’s Cerro Bayo project, with management targeting a 2028 resumption of operations.
Silver traded at just under $70 per ounce during the Resources Rising Stars Gold Coast Conference presentation. This level is a significant increase from below $40 per ounce recorded twelve months prior. Andean Silver (ASL) cited this price strength as the primary catalyst for its accelerated restart plan. The company is targeting a full restart of the Cerro Bayo gold-silver project in Chile by 2028. This timeline is driven by improved market conditions and operational readiness.
The project is classified as a brownfield restart rather than a greenfield development. Major infrastructure components are already in place at the site. This includes a mill, crushers, a power station, and a tailings dam. Environmental permits and extraction rights are currently active. The asset base is insured at an estimated replacement value of AUD 150 million. Management stated that the site has a process plant on warm idle status. An on-site assay lab offers a turnaround time of three to five days.
Resource expansion and drilling progress
Andean Silver reported an updated resource estimate of 136 million ounces silver equivalent. This figure includes 55 million ounces of silver and 1 million ounces of gold. The resource base in the Laguna Verde district has grown from 25 million ounces to 136 million ounces over the past two years. All of this growth occurred within 1.5 kilometers of the process plant. No drilling took place outside this radius during that period. The company aims to move more than 70% of the resource into indicated status.
Six drilling rigs are currently active at the site. The current drilling rate is approximately 4,000 meters per month. Management expects this rate to accelerate in the coming months. Infill drilling completion and resource conversion are targeted for early next year. A scoping study is scheduled for release in the first quarter of 2027. Feasibility work will continue into 2027 to support the 2028 restart target.
Market context and shareholder support
Management attributed the silver price rise to broader supply and demand re-rating. The company’s share price has moved closely with silver spot prices. This reflects the firm's status as a development-stage company with direct metal exposure. Andean Silver added the GDXJ index in March of this year. The company maintains a strong shareholder base for its development program.
Support comes from Eric Sprott’s group and Equinox. Rob Cohen’s 1832 Asset Management is also a participant. Rick Rule is included among the listed supporters. The district-scale potential exceeds 230 million ounces silver equivalent. This includes current resources and greenfield exploration targets. The Tema discovery recorded 2.4 meters at 15,500 grams per ton silver. These figures underscore the remaining upside potential for the asset.
