Silver Mines gets final tick of approval for Bowdens

Australia’s largest undeveloped silver deposit can now proceed to development and production after the Independent Planning Commission of New South Wales (IPC) approved Silver Mines’100% owned Bowdens Silver Project.

The long-awaited approval was granted after comprehensive processes by the Silver Mines, various government authorities including the New South Wales Department of Planning and Environment, which late last year announced it has assessed the Bowdens open pit project as being in the public interest.

The approval for the open-pit project from the IPC comes just days after the significant upgrade to its Mineral Resource Estimate (MRE) to a massive 396 million ounces of silver equivalent within 200 million tonnes at 62 grams per tonne (g/t) silver equivalent. That represents a 56% increase in total tonnes and a 44% lift in total silver equivalent ounces on the 2017 MRE.

Silver Mines (ASX:SVL) is now undertaking a significant optimisation program to update the Bowdens Silver Feasibility Study.

Major milestone

Silver Mines Managing Director Anthony McClure said: “The IPC’s decision is the most significant milestone for the company since we took over the project in mid-2016.

“Our team has delivered a technically reliable and environmentally responsible project. This decision recognises the significant long-term economic and social benefits the project will deliver for our shareholders, the State of New South Wales and also the local communities across the Mid-Western Regional Government area.

“We now look forward to getting on with delivering the Project. After the significant upgrade to our Mineral Resources as announced last week, the Company is undertaking a significant optimisation program updating the Bowdens Silver Feasibility Study.”

Still growing

The project currently has a 23-year mine life, and the deposit is still open with further increases likely given its substantial potential expansion opportunities. These are enhanced by its by-products zinc and lead, and the significant presence of gold.

Additionally, in three zones beneath the open pit, there is a maiden underground Mineral Resource estimate totalling 42.9 million ounces silver equivalent. Like the open pit, the underground resource has considerable potential to expand.

There are currently two diamond core rigs drilling on site. Exploration targets include extensions to the Underground Mineral Resource estimate (below 200m) where it remains open, including the Southern Gold Zone, and regional exploration targets defined by the 2022 seismic survey.

Plugging the supply gap

The approval comes as the silver supply gap is forecast to widen thanks to new rising demand from clean energy sectors, especially solar panels and electric vehicles.

SVL is well funded for its growth and development plans after raising $18 million in an oversubscribed placement in February.

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.