Advance Metals Uncovers High-Grade Silver and Copper Gold at Gavilanes

Advance Metals Uncovers a New Dimension at Gavilanes: High Grade Silver With a Broad Copper Gold Zone at Depth

Advance Metals Ltd (ASX: AVM) has reported a material follow-up result from its maiden diamond drilling program at the 100%-owned Gavilanes Silver Project in western Durango, Mexico. According to the ASX announcement dated 20 October 2025, the Advance Metals Gavilanes high grade silver and copper gold drill results from second hole GV-26-002 have both extended the known high grade silver system to the south and intersected a broad copper silver gold zone at depth that represents the strongest copper interval recorded at Gavilanes to date.

This combination of shallow silver and deeper copper gold mineralisation is being interpreted by Advance Metals Ltd as consistent with a stacked, multi-stage epithermal system in a district that also hosts the long-running San Dimas operation 23 kilometres to the east.

The Headline Numbers From GV-26-002

Advance Metals Ltd reports that GV-26-002 was drilled to 291 metres, targeting the southern extension of the Descubridora structure, one of several key vein systems at Gavilanes. The hole intersected two distinct mineralised zones.

Upper Zone – Extension of High Grade Silver

The upper part of the hole confirmed and extended shallow high grade silver mineralisation:

• 4.55 metres at 55 g/t Ag from 26.2 metres, including

  • 1.2 metres at 118 g/t Ag from 26.2 metres

• 8.4 metres at 245 g/t Ag from 90 metres, including

  • 3 metres at 523 g/t Ag from 90 metres

These intervals sit within the broader Descubridora structure and demonstrate that the high grade silver system continues south of earlier drilling. Furthermore, they build on the result from first hole GV-26-001, which returned 33.9 metres at 217 g/t Ag from 121.2 metres, including 6.2 metres at 718 g/t Ag from 133 metres.

Lower Zone – Broad Copper Silver Gold Interval at Depth

Beneath the silver-rich zone, GV-26-002 intersected a wide interval of copper gold mineralisation with associated silver:

• 54.6 metres at 0.6% Cu, 22 g/t Ag and 0.3 g/t Au from 180 metres, including:

  • 12 metres at 1.1% Cu, 42 g/t Ag and 0.7 g/t Au from 184.8 metres, and
  • 2.4 metres at 1.3% Cu, 61 g/t Ag and 1.3 g/t Au from 223.8 metres

• A further 1.2 metres at 0.1% Cu, 3 g/t Ag and 1.2 g/t Au from 277.8 metres

This deeper zone is described as containing contiguous chalcopyrite mineralisation, with lesser native copper and bornite, hosted in breccias and veins. Chalcopyrite and bornite are both copper sulphide minerals and are common copper ores. Advance Metals Ltd notes that this interval is the most significant copper intersection recorded at Gavilanes so far and, consequently, introduces a new style and depth level of mineralisation to the project.

Drilling Results at a Glance

The table below summarises key intersections reported by Advance Metals Ltd from the current programme and historic drilling discussed in the announcement. All widths are down hole; true widths are not yet known.

Advance Metals Ltd states that these results strengthen the interpretation of a multi-level mineral system at Gavilanes, with high grade silver at shallower levels and copper gold enriched zones at depth.

Historic Hole SCHN-01 Adds Support to the Copper Interpretation

In parallel with current drilling, Advance Metals Ltd has reviewed historical drilling data near GV-26-002. Historic diamond hole SCHN-01, located approximately 75 metres north of GV-26-002, was previously reported for a shorter, high grade silver intercept. However, the broader copper interval in SCHN-01 had not been highlighted in earlier ASX reporting.

Re-assessment of this hole has identified:

• 20.5 metres at 1.0% Cu, 119 g/t Ag and 0.9 g/t Au from 201.1 metres, including
  • 4.5 metres at 2.0% Cu, 297 g/t Ag and 2.5 g/t Au from 206.9 metres

This copper gold silver zone in SCHN-01 occurs at a similar depth to the deeper interval in GV-26-002. Advance Metals Ltd notes that two holes 75 metres apart intersecting comparable copper gold mineralisation at depth provides an early indication that this deeper zone may have lateral continuity, although further drilling is required to define its geometry and scale.

What Is a Stacked Epithermal System and Why Does It Matter?

The announcement refers to Gavilanes as being consistent with a stacked, multi-stage epithermal mineralising system. For investors, understanding this concept helps in assessing the geological argument behind the current drill programme.

Epithermal Deposits Explained

An epithermal deposit is a type of mineral deposit that forms at relatively shallow depths within the earth's crust, usually less than 1.5 kilometres below the surface. Hot, mineral-rich fluids move through fractures and faults, cooling and depositing metals such as silver, gold, lead, zinc and copper in veins and breccia zones.

Key characteristics include:

• Formation at moderate temperatures and shallow depths
• Metal-rich veins hosted in volcanic or sedimentary rocks
• Common association with precious metals such as silver and gold

Gavilanes is described as a low to intermediate sulphidation epithermal system. This refers to the chemical conditions under which the minerals formed, but for investors the key point is that this is a typical style of silver gold deposit in volcanic belts.

What Does Stacked or Multi-Stage Mean?

A stacked or multi-stage system forms when mineralising events occur in several phases, often at different depths and times. For example:

• An earlier, deeper event may introduce copper and gold into the system
• Later, shallower events may deposit silver-rich veins over or adjacent to the earlier mineralisation

The result can be multiple mineralised layers or zones sitting above each other or partly overlapping.

At Gavilanes, Advance Metals Ltd interprets the following pattern from drilling to date:

• A shallow, silver-dominant zone along the Descubridora structure, confirmed by GV-26-001 and GV-26-002
• A deeper copper silver gold zone with substantial widths and grades, as seen in GV-26-002 and historic SCHN-01

For investors, stacked systems can be important because they may offer more than one style of mineralisation within the same project area. This does not guarantee economic viability, but it can increase the range of possible development scenarios if sufficient scale and continuity are demonstrated through further drilling and resource estimation.

Glossary – Key Geological Terms at Gavilanes

Epithermal deposit: A shallow-forming mineral deposit created by hot fluids circulating near the surface, commonly hosting silver and gold.

Chalcopyrite: A copper iron sulphide mineral and the primary ore mineral for copper in many deposits.

Bornite: A copper sulphide mineral, sometimes called peacock ore, which can indicate copper-rich zones.

Breccia: Rock made up of broken fragments cemented together, often marking pathways where mineralising fluids moved.

g/t Ag, g/t Au: Grams per tonne of silver or gold, the standard unit for reporting grades.

AgEq (silver equivalent): A calculation that converts different metals into a single silver equivalent grade for comparison, using assumed metal prices and recoveries.

JORC Code: The Australasian code that sets minimum standards for reporting exploration results, Mineral Resources and Ore Reserves for ASX-listed companies.

San Dimas Comparison – Geological Context for Gavilanes

Gavilanes lies around 23 kilometres west of the San Dimas silver gold district, operated by First Majestic Silver. San Dimas has historically produced 745 million ounces of silver and 11 million ounces of gold and contains numerous mineralised veins.

Research on San Dimas cited in the announcement (Montoya-Lopera et al., 2020) interprets that district as a telescoped system made up of:

• An early copper gold porphyry event at depth
• Later silver-dominant epithermal veining
• Followed by gold-dominant epithermal veining

Advance Metals Ltd states that the emerging picture at Gavilanes, with a shallow silver system underlain by a copper gold zone, is analogous in style and setting to San Dimas. The company also clearly notes that this comparison is limited to geological style and does not imply similar size, grade or economic outcomes.

For investors, this type of comparison is often used by explorers to communicate the geological concept and potential scale of the system type they are targeting, while acknowledging that each deposit is unique and subject to its own exploration results and technical studies.

Managing Director Commentary

"Our second diamond drill hole (GV-26-002) is a significant result for Advance because it extends the high grade silver system to the south and delivers the strongest copper interval drilled at Gavilanes to date. Importantly, the broad copper silver gold zone sits below the silver-dominant mineralisation, supporting our view that Gavilanes has the potential to host a much larger polymetallic system.

With assays pending from GV-26-003 and a fourth hole now underway, we have multiple near-term catalysts as we continue to build the geological model ahead of the planned JORC Mineral Resource upgrade for Gavilanes in early Q4 CY2026.

Gavilanes is advancing alongside Yoquivo, where Advance recently delivered a 33Moz AgEq JORC Inferred Mineral Resource. Together with Guadalupe y Calvo, our Mexican projects provide a growing high grade precious metals platform in one of the world's most prolific silver regions," said Dr Adam McKinnon, Managing Director & CEO of Advance Metals Ltd.

Programme Status and Immediate Next Steps

The maiden drilling programme at Gavilanes, as outlined by Advance Metals Ltd, is expected to comprise 15 to 18 diamond holes for up to 4,500 metres. The initial focus is the Descubridora structure, with subsequent work to test additional targets.

Current hole status:

Advance Metals Ltd indicates that early interpretation by its technical team suggests copper and gold grades may be increasing towards the south and at greater depth. In addition, confirmation of this trend depends on assay results from GV-26-003 and ongoing drilling, which are expected to provide further detail on the geometry and continuity of both the upper and lower zones.

Planned near-term work includes:

• Receipt and interpretation of assays from GV-26-003
• Completion of GV-26-004, targeting extensions along strike to the south
• Systematic step-out drilling along up to 500 metres of strike on the Descubridora structure
• Commencing drilling at other priority targets including San Nicolas, El Nopal and La Cruz/La Tuna
• Reviewing and sampling selected historic core to cost-effectively increase the dataset
• Integrating all new geological and assay data into an updated model to support a planned JORC Mineral Resource upgrade in early Q4 CY2026

For investors, this sequence indicates a pipeline of regular technical data, leading towards a defined resource update, which is often a key valuation reference point for exploration companies.

Gavilanes Within Advance Metals Ltd's Mexican Portfolio

Gavilanes is one of several precious metals assets in Mexico held by Advance Metals Ltd within the Sierra Madre Occidental, a major silver and gold belt. The company positions Gavilanes alongside:

• Yoquivo Project – where a 33 Moz AgEq JORC Inferred Mineral Resource was delivered in April 2025
• Guadalupe y Calvo – described as another high grade precious metals target within the broader portfolio

Gavilanes currently has a Foreign Estimate of 22.4 Moz AgEq at 246 g/t AgEq (2.83 Mt), reported under NI 43-101 rather than the JORC Code. Advance Metals Ltd clearly states:

• The Foreign Estimate is not JORC compliant
• A Competent Person has not yet completed sufficient work to classify it as a JORC Mineral Resource or Ore Reserve
• It is uncertain whether, after further evaluation and exploration, the Foreign Estimate will be able to be reported as a Mineral Resource or Ore Reserve under the JORC Code

The company's stated strategy is to grow and convert high grade systems across its Mexican portfolio through targeted drilling, validation of historic data, low-cost core sampling and updated modelling. The recent JORC Inferred Mineral Resource at Yoquivo is cited as an example of how exploration data has been converted to a formal resource at another project.

Why the Latest Gavilanes Results Are Relevant to Investors

From an investment perspective, several aspects of this ASX update from Advance Metals Ltd may be of interest to holders and potential investors. The Advance Metals Gavilanes high grade silver and copper gold drill results offer a number of notable takeaways:

• Confirmation and extension of high grade silver
  The shallow silver intercepts in GV-26-002, together with GV-26-001, support continuity of a high grade silver zone along the Descubridora structure.

Ready to Learn More About Advance Metals' Growing Mexican Silver Portfolio?

Advance Metals Ltd (ASX: AVM) is actively drilling at Gavilanes, with high grade silver confirmed at shallow depths and a broad copper gold zone emerging beneath — all within one of the world's most prolific silver regions. With assays pending from a third hole and a fourth hole underway, the company is building towards a planned JORC Mineral Resource upgrade in early Q4 CY2026. Investors seeking to follow the progress of Gavilanes and AVM's broader Mexican project portfolio can find further information by visiting the Advance Metals investor page.