ARGENTINA —Canadian mineral exploration company AbraSilver Resource has issued a Limited Notice to Proceed to global engineering firm Worley to initiate the bridging engineering phase for the Diablillos silver-gold project in northwestern Argentina. Building upon the recently completed Definitive Feasibility Study, the bridging contract encompasses engineering design, technical evaluation, procurement planning, cost estimation, scheduling, and permitting support required to advance the asset toward a targeted final investment decision in the second quarter of 2027. Execution will involve Worley engineering teams across Argentina, Canada, and Colombia, with specific focus on designing site camp facilities and assessing modular construction strategies tailored for the high-altitude Puna region in Salta and Catamarca provinces. AbraSilver Resource is a Canada-based precious metals company advancing exploration and development assets in South America. Worley is an Australia-headquartered global engineering and project delivery group providing technical services to the energy and resources sectors.
The transition into pre-construction bridging engineering represents a crucial de-risking phase for the greenfield precious metals project. High-altitude mining developments in the Andean region encounter significant logistical complexities, including remote site access, extreme weather conditions, and scarce infrastructure. By establishing detailed procurement pathways and site infrastructure plans prior to formal capital commitment, the project team aims to lock in capital expenditure estimates and operational schedules. Completing comprehensive engineering workstreams ahead of the final investment decision minimizes execution risks and potential cost inflation during site construction.
This development underscores broader trends within the South American mining sector, where developers are prioritizing systematic engineering protocols to advance high-margin silver and gold reserves. Argentina's northwestern provinces, particularly Salta and Catamarca, continue to attract international capital due to supportive regional mining policies and established regulatory processes. As global silver demand increases across industrial applications, including solar photovoltaics and electronic components, new primary precious metal supply from long-life deposits serves a critical role in stabilizing global commodity supply chains. Furthermore, the multi-center execution structure deployed by Worley illustrates how engineering contractors leverage international technical hubs to manage project delivery efficiently.
For investors and mining stakeholders, advancing Diablillos through a structured engineering agreement enhances project bankability and supports future debt and equity financing arrangements. De-risking the technical and environmental parameters of the asset before seeking construction approval provides greater certainty for institutional capital. As junior mining companies navigate the transition from exploration entities to project operators, maintaining steady momentum through specialized engineering partnerships remains essential for mitigating execution risk and safeguarding long-term project economics.
