Bolstered by a strong silver price, Advance Metals Ltd (ASX:AVM) has entered a binding sales agreement to acquire a project in Mexico which holds an existing Foreign Resources Estimate of 17.23 million ounces of silver equivalent (AgEq) at a grade of 570 grams per tonne (g/t: AgEq).

The Yoquivo Silver Project is located in the northwest of Mexico’s Chihuahua state, in a surrounding district known for producing gold and silver from epithermal veins – and which is proximal (35 kilometres southeast of) the Ocampo Mining District.

Yoquivo was previously owned by Golden Minerals Company (NYSE: AUMN andTSX: AUMN), which has drilled more than 16,500 metres at the project since 2020, and Advance aims to follow this up with a program of systematic exploration to yield a JORC resource from the project.

From Golden Minerals’ three previous drilling campaigns, results have included 1.2 metres at 34.0 g/t gold (Au) and 1895 g/t silver (Ag) from 47.3 metres including 0.3 metres at 135.5 g/t Au and 7480 g/t Ag from 47.3 metres – from one hole.

Another hole yielded 2.4 metres at 0.51 g/t Au and 706.0 g/t Ag from 165.0 metres.

The entire Foreign Resource Estimate for Yoquivo is set at 937,000 tonnes at 570 g/t AgE (2.1 g/t Au, 410 g/t Ag) for 17.23M oz (AgEq2).

Silver is currently trading at US$33.55 per Troy ounce, having recently retreated from 12-year highs.

Advance shares rose on the news, and by 13:06 AEDT, they were trading at 4.4 cents – a rise of 57.14% since the market opened.

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