Andean Silver (ASX:ASL) Cerro Bayo mine in Chile shows significant potential for additional discoveries, according to a Thursday note by Jarden Research.

Jarden notes that the project has the highest-grade silver deposit on the Australian Stock Exchange and is infrastructure-ready, producing two high-demand commodities, gold and silver.

With surface indicators suggesting further discoveries, Jarden said ASL could become a 100,000 ounces per year producer of gold and silver.

Gold and silver prices have room to rise and each accounts for about 50% of ASL's revenue, Jarden added.

The firm maintains Andean Silver's speculative buy rating and AU$2.25 price target.

Jarden moved to a "conservative" model as Andean Silver's traders are likely to support future production at the project.

Shares of ASL rose past 2% in recent Thursday trade.