PPX's High-Grade Drill Intersections at Callanquitas: Unlocking Undervalued Near-Mine and Infill Drilling Potential

The recent drilling results from Pan American Silver's (PPX) Callanquitas project in Mexico have underscored the site's exceptional mineralization potential, particularly in the sulfide and oxide zones. These high-grade intersections, coupled with the company's strategic focus on near-mine exploration and infill drilling, present a compelling case for investors seeking undervalued opportunities in the silver-gold-copper space.

High-Grade Intersections Signal Robust Continuity

PPX's 2025 drilling program at Callanquitas has delivered standout results, including drill hole CA-25-24, which intersected three mineralized zones. Notably, one section returned , 3,756.2 g/t Ag, , with an included interval of , , according to drilling results. Another segment in the same hole yielded , , , highlighting the project's polymetallic richness. Similarly, drill hole CA-25-23 intersected 12.33 g/t Au and 11.4 g/t Ag over 2.4 meters, including a high-grade interval of according to drilling results. These results, concentrated in the Callanquitas East breccia and hydrothermal tension veins, suggest strong continuity and expansion potential.

Near-Mine and Infill Drilling: A Path to Resource Growth

PPX's 2025 drilling program, now extended to 4,300 meters, is explicitly targeting near-mine and infill opportunities. In the Callanquitas West area, drill hole CA-25-16 returned 41.7 g/t Au and 179.2 g/t Ag over 3.2 meters, including a standout interval of as reported. Meanwhile, CA-25-20 intersected , with a higher-grade segment of according to the company's announcement. These findings, combined with the confirmation of the Callanquitas West breccia's extension via CA-25-17 as detailed in the announcement, demonstrate the project's ability to generate consistent, high-grade returns even in adjacent zones.

The company's focus on infill drilling is particularly noteworthy. By systematically testing the sulfide and oxide zones from underground chambers, PPX is not only validating existing structures but also identifying new targets. For instance, the mixed-sulfide zone results from CA-25-20 indicate that the mineralization remains open for expansion, a critical factor for resource growth as confirmed by the company. Such data suggests that Callanquitas is far from a "discovery phase" project-it is a mature, high-potential deposit with clear pathways to near-term production increases.

Undervalued Potential in a Commodity-Friendly Environment

Despite these promising results, Callanquitas remains underappreciated in the broader market. The project's proximity to existing infrastructure and its polymetallic nature-combining gold, silver, and copper-position it to benefit from rising demand for critical minerals. Yet, PPX's stock valuation does not fully reflect the upside potential of Callanquitas, particularly given the low-cost, high-impact nature of near-mine and infill drilling.

As stated by PPX in its recent announcement, the extension of the drill program underscores the company's confidence in the project's ability to deliver "meaningful resource upgrades" according to the company's statement. This aligns with industry trends favoring near-mine exploration, which typically offers lower risk and higher success rates compared to greenfield projects. For investors, this represents a rare opportunity to capitalize on a well-capitalized company leveraging its operational expertise to unlock value.

Conclusion

PPX's Callanquitas project is a testament to the power of strategic drilling in unlocking hidden value. The high-grade intersections, combined with the company's disciplined approach to near-mine and infill exploration, create a strong foundation for resource expansion and production growth. As the 2025 drilling program progresses, the market is likely to reassess Callanquitas' potential, making it a compelling addition to a diversified mining portfolio.