Silver Mines completes native title agreement for Bowdens

Silver Mines has struck a native title agreement in relation to a parcel of Crown land within the Bowdens Silver Project, enabling further progress at what is the largest undeveloped silver deposit in Australia and one of the largest in the world.

The agreement over the Warrabinga-Wiradjuri #7 native title claim with Silver Mines (ASX:SVL) 100% owned subsidiary Bowdens Silver Pty Ltd has also been executed by the NSW Minister for Natural Resources. This completes the Right to Negotiate process set out in the Native Title Act 1993 and allows Silver Mines to continue exploring and developing at the project.

This signing also demonstrates the project’s high level of support from the vast majority of the community and it follows the NSW Independent Planning Commission approval in April for the Bowdens Silver open cut project to move towards development and production.

A growing resource

Since April SVL has also been focused on updating the Bowdens Feasibility Study to include the massive Mineral Resource Estimate (MRE) of almost 400 million ounces of silver equivalent.

Thanks to SVL’s ongoing exploration, the current MRE is 56% up on total tonnes and 44% higher in total silver equivalent ounces than the 2017 MRE. The study is set for completion by the end of the March quarter next year and the updated resource is also likely to include a sizeable lift in Ore Reserves at what was recognised as the fourth largest undeveloped silver deposit in the world last month by Visual Capitalist.

More underground treasures too

Boosting SVL’s confidence that high-grade mineralisation extends beyond current Ore Reserve are recent results including six metres at 1,251g/t silver from 335 metres in the Aegean Zone. That’s more than an eye-watering 40 ounces silver per tonne.

Like the Aegean, the other two underground zones – Northwest and Bundarra – remain open in various orientations and all three are targets for diamond drilling.

SVL has been looking at potential underground mining scenarios beneath the open pit, though these efforts are on hold in the short term as the company prioritises Feasibility Study for the open pit.

Exploration continues

At the same time SVL is currently undertaking a substantial seismic survey that is likely to generate further targets for the ongoing aggressive exploration program. Planning is also underway for exploration at the historic prospect, Barra Creek, in the northern rim of the Bowdens caldera.

The caldera was identified by seismic work last year and led to much better understanding of the deposit, as well as more drill targets. The current seismic survey is expanding the search.

Meanwhile SVL was granted another exploration licence at the north and east of Bowdens in July. This area is also highly prospective for Group 1 metals and minerals including gold, silver, zinc and copper, which are all essential for the clean energy transition.

The presence of these metals makes Bowdens aligns closely with the NSW Government’s Critical Minerals and High-Tech Metals Strategy – as the IPC noted in its approval for the open pit.

The strategy outlines a vision for NSW to be a major global supplier and processor of minerals needed for a sustainable future and silver, in particular, faces accelerating demand due to it being essential for solar energy and EVs.

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.