Silver Mines closes strategic US deals to bring exploration upside

• Silver Mines completes acquisition of Calico North silver project and starts earn-in for Kramer Hills gold and silver project in mining-friendly San Bernardino County
• Both projects host historical production and kilometres of untested mineralized structures
• Bowdens silver project remains Silver Mines’ focus, but US transactions add low risk exploration optionality to portfolio

Special Report: Silver Mines has taken major strategic steps by closing deals on two highly prospective, low-risk precious metals assets in California.

The company has now completed its purchase of the Calico North silver project and started the Kramer Hills earn-in to acquire up to an 80% interest in the gold and silver project.

Silver Mines (ASX:SVL) remains firmly focused on advancing the Development Consent and Mining Lease Approvals for its flagship Bowdens silver project, but sees the US assets as adding significant exploration optionality to its NSW-based portfolio.

Both projects in the prolific San Bernardino County of California host mineralisation with historical production plus kilometres of untested mineralised structures near surface and at depth.

Closely following the initial announcement of the acquisitions last month, exploration will start this quarter, focusing on target generation through mapping and geophysics before drilling starts in 2026.

Discovery opportunities

SVL managing director Jo Battershill commented: “The completion of the Calico North acquisition and the commencement of the Kramer Hills earn-in marks a pivotal step in Silver Mines’ strategic growth and diversification.

“These projects significantly enhance our exploration portfolio, providing immediate exposure to two highly prospective brownfields assets in a tier-1 jurisdiction.

“With the Bowdens silver project advancing toward production, we are excited to complement it with new discovery opportunities in the US.

“Both projects offer compelling geology, scale potential, and historical data that support a strong case for systematic modern exploration.

“However, we remain committed to advancing the Bowdens silver project and this remains our flagship project and key focus for 2025.”

Battershill added that Calico North contains extensive zones of high-grade silver-barite mineralisation near historic mines, yet the region’s seen almost no exploration for nearly a century.

Barite has recently been classified as critical in the US given its importance in oil and gas drilling, with most supply coming from India and China.

Kramer Hills presents a walk-up gold target, with strong indications of extensions both laterally and at depth.

“Our team has already commenced planning geophysical and geological programs to generate and prioritise drill targets,” Battershill said.

“These assets align with our strategy of identifying value- accretive opportunities with minimal upfront cost, meaningful upside potential, and strong strategic fit.”

The total upfront cash payment for the acquisitions is a minimal US$1.1 million (A$1.7 million) plus 6.25 million Silver Mines shares. That will be followed by milestone payments or expenditure commitments as the projects progress.

Bowdens pure play

Silver Mines’ 100%-owned Bowdens is the largest undeveloped silver project in Australia and one of the largest in the world with a current JORC-compliant reserve of 71.7 million ounces of silver.

Among silver projects globally it’s also one of the most highly leveraged to the silver price.

Bowdens also has plenty of resource growth potential at a time of bullish long-term sentiment for silver and strong investor appetite for pure play leverage to the silver price. All of that is fuelling a flurry of high-value M&A action in the sector.

This article was developed in collaboration with Silver Mines, 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.