Andean Silver (ASX:ASL) reported high-grade rock-chip results from its newly identified Juanita prospect, with the discovery highlighting significant exploration upside, Euroz Hartleys said in a Tuesday note.

Euroz Hartleys noted exceptional rock-chip assay results, including grades of up to 62,663 grams per tonne silver equivalent from 25,047 grams per tonne silver and 453.2 grams per tonne gold, point to an extensive high-grade mineralized system along the newly identified trend.

The research firm said historic drilling completed before 2004 did not target the high-grade breccia zones now identified at Juanita, where breccia widths of up to 18 meters highlight the prospect's mining potential.

It maintained a positive outlook for silver, citing a persistent market deficit and rising electrification demand, while highlighting the company as the Australian Securities Exchange's only advanced silver company with permits and a processing mill in place.

It added that its valuation does not reflect Juanita's exploration upside and that the company is continuing geological mapping ahead of drill testing at Cerro Bayo.

Euroz Hartleys maintained its buy recommendation and AU$2.88 price target on Andean Silver.

Andean Silver's shares jumped past 4% in recent Wednesday trade.