Andean Silver Ltd (ASX: ASL) shares are slipping on Tuesday after the explorer released another strong drilling update before the market open.
At the time of writing, the Andean Silver share price is down 1.58% to $1.87, extending its losses from last week's pullback.
The stock remains down almost 22% since the start of 2026, showing just how volatile sentiment has been this year.
The latest move comes despite the company reporting more high-grade drilling success at its Cerro Bayo silver-gold project in Chile.
Let's take a closer look.
Image source: Getty Images
More strong drilling results from Cerro Bayo
According to the ASX release, Andean Silver delivered another batch of strong assay results from the Cerro Bayo project.
Ongoing drilling continues to extend known mineralisation while giving the company more confidence in the overall resource base.
Some of the standout results included 68.3 metres at 65g/t silver equivalent from the Appaloosa Breccia zone, including a much higher-grade 1.3 metres at 1,523g/t silver equivalent.
The company also reported 33.2 metres at 75g/t silver equivalent, with several smaller high-grade sections inside that result.
These results are expected to feed into a mineral resource update planned for the June quarter.
The current Cerro Bayo resource already stands at 9.8 million tonnes grading 353g/t silver equivalent for 111 million ounces of contained silver equivalent.
Why investors are looking beyond the recent volatility
Investors seem to be looking past the recent share price volatility and focusing more on the growing scale now emerging across multiple target zones.
Today's announcement also showed progress across Temer, Coyita North, and the Appaloosa Breccia, with management saying the updated resource is expected to support restart studies later this year.
The company also remains well funded, with roughly $56.1 million in cash following its recent capital raising. This gives it the flexibility to keep drilling aggressively through 2026.
That strong cash position also lowers near-term funding concerns and gives investors a clearer path to the June catalyst.
Foolish Takeaway
While the share price is still down quite a bit in 2026, the new drilling results continue to support the view that Cerro Bayo could become a much larger and more defined silver-gold asset over time.
The June quarter resource update now looks like the next major event that could decide whether this rebound has more room to keep going.
A stronger June resource update could give investors more confidence in plans to bring the project back into production.
