Andean Silver (ASX: ASL) continues to make significant new drill hits as it grows its promising Cerro Bayo silver-gold project in Chile.

The company has drilled a number of deep, thick intercepts at the Cristal and Pegaso 7 discoveries in its ongoing exploration program at Cerro Bayo.

Highlights among recent results include 13.1 metres at 332 grams per tonne silver equivalent (AgEq) from Pegaso 7 and 42.2m at 122g/t AgEq at Cristal.

Resource update

The latest drilling results should add significantly to the updated Cerro Bayo mineral resource estimate (MRE) planned for release in the coming quarter, with Cristal and Pegaso 7 both outside the area covered in the previous estimate.

Chief executive officer Tim Laneyrie said drilling at Pegaso 7 and Cristal continues to expand and refine the key mineralising controls within the broader systems.

“Our drilling at Cristal has already defined a mineralised area 180m long and 100m deep,” Mr Laneyrie said.

“The information we have gained from this initial drilling campaign will be used to design the second phase of drilling with the aim of extending the strike beyond the known 700m corridor.”

Third rig on site

Andean continues its aggressive strategy to test Cerro Bayo’s potential, with a third drill rig now on site.

Resource extension drilling is also underway at the Coyita North project area.

The campaign will aim to increase the depth of the lode as well as joining up the Coyita North and South lodes.

Tenement expansion

Andean has applied for a number of new exploration tenements abutting the existing Cerro Bayo leases with similar geology to the existing tenure.

The company is planning a program including scout mapping, geochemical sampling and hyperspectral work to advance the understanding of the area’s potential.

“These areas contain extensions of structures of mineralised zones on our existing ground, while displaying key indicators that we would be looking for in identifying these systems in their own right,” Mr Laneyrie said.

Early acquisition payment

Andean highlighted its belief in the potential of Cerro Bayo with a decision to make the final deferred payment several weeks in advance of its mid-October due date.

The payment of $750,000 to Equus Mining (ASX: EQE) followed a $25 million capital raising and resulted in a $250,000 saving for Andean.

Mr Laneyrie said the company is applying “boots-on-the-ground” geology work, together with proven geophysical techniques, to aggressively explore the granted tenure.

Andean has set itself an increased drilling schedule to support an expected phase of strong growth over the coming year.