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AysénChile

Cerro Bayo Project

Driving Innovation, Sustainability, and Growth in the Mining Industry.

Overview

  • The Cerro Bayo mine is 100% owned by Andean Silver. The mine covers 285sq.km and comprises over 70 contiguous exploration concessions as well as surface properties that covers the areas of the Laguna Verde mining district and processing facilities.
  • The Cerro Bayo Project was in production for over 15 years, producing more than 45Moz Ag and 650koz Au (~99Moz AgEq). The Project has been on care and maintenance since October 2022. 

Locations

  • The Cerro Bayo mine is located 10km west of the town of Chile Chico in the Aysen region of Chile which is a 2.5hr commercial flight from Santiago that runs multiple times per day. Chile Chico has a population of ~4,000 people with skilled labour and major infrastructure including hospitals, schools and all weather road access to major deep-water regional ports. 

Community and Heritage

  • Andean Silver is delighted to announce its partnership with the Chile Chico municipality and the local community in constructing platforms designed to protect and preserve archaeological sites near our mine and the local town. These sites feature regionally significant rock art dating back over 3,500 years.
  • Andean Silver is delighted to announce its partnership with the Chile Chico municipality and the local community in constructing platforms designed to protect and preserve archaeological sites near our mine and the local town. These sites feature regionally significant rock art dating back over 3,500 years.
  • Our COO, Damien Koerber, and GM, Álvaro Fuentes, recently visited the site alongside the local mayor and community members to discuss the planned preservation efforts. These initiatives aim to safeguard the site while allowing access for future generations without causing damage.
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Resources

Cerro Bayo hosts a Mineral Resource Estimate of 20.0Mt @ 211g/t AgEq for 136Moz AgEq, including 60Moz AgEq in the higher-confidence Indicated category, as at 30 June 2026.

The resource comprises both open pit and underground mines across 2 mining complexes with the Cerro Bayo project and is supported by the collected knowledge and drilling investment over 20yrs of mining history through the district.

Mineral Resource Estimate as at 30 June 2026

  1. Mineral Resource Estimates are classified and reported in accordance with the JORC Code.
  2. MSO shapes were generated to constrain the Resource using an NSR value of US$124/t and a minimum mining width of 1.2m.
  3. Pit optimisation shells were generated at an NSR cutoff or US$47/t to constrain the open pit resources with SMU of 3m x 5m x 5m applied.
  4. A gold price of US$3,500/oz and Silver price of US$45/oz was used to generate NSR cutoffs.
  5. Individual grades for all metals included in the metal equivalents calculation are set out in the table above. Silver equivalents are calculated using the equation AgEq = Ag(g/t) + (83 x Au(g/t)) and gold equivalents are calculated based on the equation AuEq = Au(g/t) + (Ag(g/t) / 83) based on a gold price of US$3,000/oz and Silver price of US$36/oz. Metallurgical recoveries for gold and silver are closely linked and are typically 85-93% for gold and silver. The actual assumed metallurgical recovery rate used to calculate the metal equivalents is 90% for each of gold and silver. The Company considers the estimation of metallurgical recoveries in respect of exploration work to be reasonable based on the past processing records from the nearby Cerro Bayo plant between 1995 and 2016, and work undertaken in preparing the Mineral Resource Estimate. It is the Company’s view that all elements in the silver and gold equivalents calculations have a reasonable potential to be recovered and sold.
  6. Bulk Density of 2.63g/cm3 has been applied to veins and 2.57g/cm3 has been applied to stockwork and waste domains.
  7. Numbers may not add due to rounding.

Geology

  • The mineralization is typical of a low sulphidation type and is interpreted to be of a multi-stage, open space filling epithermal origin resulting in mineralized veins, stockworks and breccias. Two different mineralization events can be recognized at Taitao. A mesothermal early stage Ag-Mo-Zn-Pb with subordinated gold, well exposed in the Taitao and Breccia zones; and, a late stage typical epithermal gold-silver rich system, of the low sulfidation type, representative of the main mineralization stage of the district, represented by the NW trending Condor vein systems. 
  • Two main vein systems are recognized at Laguna Verde. NS to NNE trending brecciated veins and breccias varying in dip from vertical to 45º E, and N15ºW to N35ºW oriented veins varying in dip between vertical and 75º NW and SE. Strike lengths up to 1.5km have been recognized in some of the vein systems evaluated to date. Widths are highly variable between the different vein systems and in individual veins along-strike and down-dip varying from centimetres up to 50 meters in breccias and stockworks (sheeted zones). 
  • Brecciated veins and tectonic breccias are the typical structures of the early stage mineralization while the stage epithermal mineralization is represented by banded veins, locally brecciated. They consist mainly of fine-grained quartz and chalcedonic silica, adularia, and fluorite, with minor amounts of barite and carbonates. The general sulfide content is low, less than 5%, being higher in the early stage event. Sulfides are mainly pyrite, silver sulphosalts and locally sphalerite as disseminations, clusters, and bands. 
  • Across the project the topographic exposure shows all levels traditionally seen in an epithermal system.  30% of the property is weathered to the main Ag/Au and Au boiling zones with a large part of the underexplored ground sitting between the Raul/Cascada to Sinter Hill target area.  It is believed that this has seen the least historic exploration as veins are not outcropping but are present deeper below the topography. 

Forward Work Plans

Twelve Month Strategy and News Flow

Andean continues to effectively execute an aggressive exploration and Resource growth and definition campaign throughout its 330km2 Cerro Bayo Silver-Gold Project. During the remainder of 2026 and into 2027, the Andean team aims to advance the project from a predominantly exploration focus to a combination of exploration and restart planning. Andean’s strategy includes:

Exploration:

  • Drilling brownfields targets for growth of existing Resources in the Laguna Verde and Cerro Bayo mine complexes.
  • Continuing to support long-term Resource growth potential through target generation, exploration and discovery.
  • Continuing to develop and permit a comprehensive drill campaign over the greenfield projects from target generation and geophysical campaigns over the Droughtmaster/Sinter Hill areas.
  • Continuing the broader regional exploration campaigns (mapping, sampling, target generation).

Restart Planning:

  • Continuation of a broad infill drilling campaign to support conversion and updated geotechnical and metallurgical studies.
  • Commencement of feasibility level work.

In addition to the current fleet of 4 drill rigs, the Company will consider increasing the number of rigs on site to support all planned 2026 and 2027 activities to achieve the Company’s strategic goals.

Table 1: News flow over the coming 12 months.

The below timetable is indicative only and is subject to change.

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