Andean Silver Extends Cerro Bayo Silver Discovery Over 2 Kilometres

High-Grade Silver Discovery Extends Mineralisation Corridor at Cerro Bayo

Andean Silver Limited has announced significant exploration results that demonstrate the exceptional growth potential at its Cerro Bayo high-grade silver discovery by Andean Silver Ltd in Chile. Recent sampling across multiple vein systems has revealed over 2 kilometres of exposed mineralised veins with grades exceeding 10,000g/t silver and 125g/t gold.

The results showcase extremely high-grade mineralisation across two key districts, with rock chip samples returning values up to 21,282g/t silver equivalent (10,530g/t Ag & 129.5g/t Au). Furthermore, these findings reinforce Cerro Bayo's position as a world-class epithermal silver-gold system with substantial resource growth potential.

Taitao East Discovery Extends Known Mineralisation

What Makes These Grades Exceptional Near Existing Infrastructure?

The Laguna Verde district has revealed outcropping veins extending up to 100 metres east of the existing Taitao open pit, moving toward the Cristal prospect. This discovery is particularly significant as it sits adjacent to Andean's existing 1,500 tonnes-per-day processing facility.

High-Grade Rock Chip Results from Taitao East:

The 750-metre corridor between Taitao and Cristal remains unmapped and untested by drilling, presenting a significant near-mine exploration opportunity. In addition, the newly identified veining mirrors the high-grade north-south trending structures that were historically exploited in the open pit.

Guanaco Vein Field System Grows by 1 Kilometre

How Does Continuous High-Grade Mineralisation Impact Resource Potential?

Recent mapping and sampling at the Cerro Bayo district has extended multiple sub-parallel vein corridors by approximately 1 kilometre northward. Consequently, this materially expands the known footprint of the epithermal vein field system.

High-Grade Rock Chip Results from Guanaco:

High-Grade Sawn Channel Results:

The most significant channel sample returned 1.7 metres @ 1,031g/t silver equivalent (343g/t Ag & 8.3g/t Au). Meanwhile, another impressive interval graded 0.5 metres @ 6,050g/t silver equivalent (1,129g/t Ag & 59.3g/t Au).

The 1.3-kilometre corridor between the Droughtmaster and Guanaco mines continues under shallow cover. However, geophysical anomalies indicate potential for additional prospective zones that remain untested.

Understanding Epithermal Systems: Why These Results Matter

Epithermal deposits form from hot, mineral-rich fluids that circulate near the Earth's surface, typically creating high-grade vein systems in volcanic terrains. These systems are characterised by their exceptional silver and gold grades concentrated in narrow but continuous structures.

Key characteristics of epithermal systems:

• Predictable vein continuity both along strike and at depth
• High-grade ore shoots within broader mineralised corridors
• Multiple parallel vein systems creating district-scale opportunities
• Excellent metallurgical recovery (typically 90-93% for gold and silver)

At Cerro Bayo, the epithermal system demonstrates textbook characteristics with multiple parallel north-south trending veins hosted in volcanic rocks. The Cerro Bayo high-grade silver discovery by Andean Silver Ltd validates the system's continuity and suggests significant additional potential remains to be defined.

Strategic 12-Month Plan Accelerates Development

What Activities Will Multiple Drill Rigs Accomplish?

"We have a long pipeline of these well-advanced prospects for exploration which have been identified by sampling and a thorough re-evaluation of the geological data at Cerro Bayo," stated Tim Laneyrie, Chief Executive.

Planned Activities and Timeline:

Andean has deployed three drill rigs on site for 2025, with consideration for additional rigs as surface exploration generates compelling drill targets. Furthermore, the company's systematic approach combines brownfields resource growth with greenfields discovery potential across its 33,180-hectare district.

Project Scale and Resource Growth Potential

How Does This Build on a 111-Million-Ounce Silver Equivalent Foundation?

The Cerro Bayo Project currently hosts Indicated and Inferred Mineral Resources of 9.8Mt at 353g/t AgEq for 111Moz of contained silver equivalent. However, this represents just a fraction of the district's potential, with over 100 million ounces historically mined between 1995 and 2016.

Current Resource Summary:

The Cerro Bayo high-grade silver discovery by Andean Silver Ltd adds significant strike length to known mineralised systems. Consequently, 2+ kilometres of high-grade veins are now mapped at surface, positioning Cerro Bayo for continued resource growth as systematic drilling defines extensions and new discoveries.

Investment Thesis: World-Class District with Multiple Growth Vectors

Why Does This Proven System Offer Exceptional Upside?

Cerro Bayo presents a compelling investment opportunity combining proven production history, exceptional grade potential, and systematic exploration upside. For instance, key investment highlights include:

Operational Advantages:

• Existing 1,500 tpd processing facility on care and maintenance
• Established infrastructure and mining permits in place
• Proven metallurgy with 90-93% recovery rates for gold and silver
• Experienced management team with epithermal system expertise

Resource Growth Catalysts:

• 2+ kilometres of newly identified high-grade veins
• Multiple untested corridors between known deposits
• District-scale exploration potential across 330 km² land package
• Systematic drill programme with three rigs operating

Financial Position:

• Well-funded exploration programme supporting aggressive 2025 campaign
• Clear path to production restart with existing infrastructure
• Manageable care and maintenance costs during exploration phase

The combination of exceptional grades, proven system continuity, and existing infrastructure positions Cerro Bayo as one of the most compelling silver-gold development opportunities in South America. Indeed, the Cerro Bayo high-grade silver discovery by Andean Silver Ltd demonstrates exceptional growth potential, with multiple high-grade vein systems now extending over 2+ kilometres.

"Andean Silver has positioned itself as a major player in the epithermal silver-gold space, with the Cerro Bayo high-grade silver discovery by Andean Silver Ltd validating exceptional resource growth potential. With systematic drilling planned throughout 2025, investors should closely monitor this emerging silver-gold story."

As drilling systematically tests these new discoveries, Andean Silver is poised to demonstrate the true scale of this world-class epithermal district.

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