Errawarra Resources picks up transformative silver project

ERW picking up 70% of historic silver project in WA
Elizabeth Hills previously produced 1.2Moz from 16,000t of ore in just one year
Company is planning to zero in on drill targets to grow its resource and aims to find more Elizabeth Hill-style deposits

Special Report: Errawarra Resources has made a transformational acquisition, scoring 70% of the high-grade Elizabeth Hill silver project in WA.

ASX explorer Errawarra Resources (ASX:ERW) has burst out of the gates at full speed with the pick up of the high grade Elizabeth Hill silver project in the Pilbara.

Elizabeth Hill ceased operations in 2000 due to declining silver prices (~US$5/oz compared to more than US$33/oz today) despite seeing historical production of 1.2Moz silver from 16,000t of ore after operating for only one year.

For context, that equates to a head grade of ~2194g/t silver.

Elizabeth Hill also boasts some bonanza grade intercepts including 11.7m at 5371g/t silver from 13m, with the company also picking up 70% of the silver rights only to the Pinderi Hills project tenement package and earning 70% into three tenements surrounding the silver project.

That makes Errawarra the first explorer to consolidate the surrounding land package of 180km2, which covers highly prospective underexplored areas for silver mineralisation.

Various explorers over previous years have identified anomalous silver soil results across this consolidated land package and coupled with other strategic exploration techniques ERW will hit the ground running with a view to finding more Elizabeth Hills.

Historic producer has growth potential

The company says the transformational deal provides a high-grade, previously producing asset with resource growth potential in and around the historic mine – which saw limited previous drilling and outdated geophysics.

“This is an exceptional opportunity for our shareholders, and we are extremely fortunate to have secured this acquisition of the Elizabeth Hill Silver Project,” ERW chairman Thomas Reddicliffe said.

“This gives us the opportunity to enhance our existing asset base in Western Australia with the addition of a high-grade past producing silver asset with immediate growth potential.

“The combination of existing high-grade silver intercepts, significant growth potential and compelling exploration prospectivity at both the existing Elizabeth Hill mine and regional targets, with Elizabeth Hill being located on an approved mining lease, presents a huge opportunity for the company, all supported by a buoyant silver market driven by a growing demand deficit.

“We are very excited about what this transformational deal brings to ERW and look forward to immediately getting work underway to add more value for shareholders.”

Experienced geologist Robert Mosig will oversee exploration activities moving forward, with multiple look-a-like geological structures with similar characteristics to Elizabeth Hill remaining untested.

In addition, ERM Consultants are analysing the project’s geological setting to analogous projects in various parts of the world to assist in target generation.

Silver demand rising

While it has often played second fiddle to gold in the eyes of investors, silver has some of the best fundamental tailwinds of any commodity.

The metal’s price has been predominantly driven by the same drivers as gold in recent years – safe haven investing against geopolitical and economic uncertainty.

But more than half of its market is now industrial, with burgeoning growth in solar panel installations pushing silver into significant deficits, with 2025 likely to be the fifth year in a row when demand has outstripped supply.

With gold at record highs, that’s a fertile environment for silver to move higher and close the gap to its shiny cousin.

This article was developed in collaboration with Errawarra Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.