Diablillos begins a new engineering phase before defining its investment

AbraSilver Resource Corp. launched a transitional engineering phase for Diablillos, its silver and gold project located in the Puna region, between Salta and Catamarca. The work will be carried out by Worley, which also prepared the Definitive Feasibility Study.

The goal is to deepen the technical and economic definition of the project, reduce execution risks and prepare the elements needed for a Final Investment Decision expected in the second quarter of 2027.

The scope includes detailed engineering, technical studies, procurement services, cost and schedule updates, as well as permitting-related assistance. The work will be coordinated by AbraSilver and Worley teams in Argentina, Canada and Colombia.

Planning will also include a camp for the construction and operation stages. Due to the altitude, isolation and limited infrastructure available in the area, modular construction alternatives will be analyzed.

The company reported that the estimated initial capital for Diablillos amounts to US$722 million, including US$98 million in contingencies. That figure is in addition to US$520 million in sustaining capital, which would be financed through operating cash flow.

The project envisages average production of 20 million ounces of silver equivalent per year during its first five years of full production.

With information from Panorama Minero.