Silver Mines starts drilling at highly-touted NSW exploration project
Mining & Resources
Special report: Silver Mines Limited will commence a much-anticipated drilling program at its Barobalar Project near Mudgee in central New South Wales next week following the receipt of government approvals.
Barobalar is located 10km north-west of the Company’s Bowdens Silver Project within the highly prospective Macquarie Arc that hosts several word-class mineral systems including Newcrest Mining’s giant Cadia-Ridgeway copper-gold operation.
Silver Mines is most hopeful that its exploration efforts will uncover a large copper-gold porphyry system like Cadia-Ridgeway.
However, the project consists of nine-kilometre long corridor of copper, silver, lead and zinc soil and rock chip anomalies and is prospective for several different types of mineralisation.
The initial drilling at Barobalar will focus on targets in the southern part of the corridor including Bara Mine and Bara North, which the Company believes are prospective for copper-silver-lead-zinc (plus gold) polymetallic mineralisation.
Later this month, the focus will shift to the Cringle prospect, where surface sampling recently returned high-grade gold and silver results.
First results from the southern drilling are expected in early November.
Silver Mines anticipates securing final approvals for prospects in the northern part of the project area shortly, and intends to drill those at the conclusion of the initial programs.
Managing Director Anthony McClure recently returned from the United States where he attended the Precious Metals Summit at Beaver Creek as well as the Denver Gold Forum.
He said the sentiment towards Australian precious metals companies at the events was overwhelmingly positive, driven by the success of mid-tier gold miners such as Northern Star Resources, Regis Resources and St Barbara.
“These companies all presented on morning of the first day in Denver and the auditoriums were packed,” he said.
“They may be benefitting from a favourable US dollar exchange rate, but they also have young, hungry management teams that have been showing the North Americans a thing or two.
“It’s great for the local sector as a whole.”
Silver Mines has completed a Definitive Feasibility Study on Bowdens and is progressing an Environmental Impact Statement on the project.
The Company is likely to wait for a higher silver price before making any decision to commit to its development.
Silver Mines shares were up 0.2c to 2.6c just after midday on Wednesday.
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