Silver Mines (ASX:SVL) used a recent investor presentation to outline the current status of its Bowdens silver development in New South Wales and to provide an update on two recently acquired exploration-stage projects in California.
Bowdens positioned as large, advanced silver development
The company described Bowdens as a 100%-owned asset and characterized it as the fifth-largest undeveloped silver project globally, and the largest in Australia “by a significant margin.” Management cited a resource of 180 million ounces of silver, stating that 91% of this sits in the measured and indicated categories. The company also noted it does not emphasize “silver equivalent” reporting and instead references contained silver ounces.
Economics, costs, and silver-price leverage
In discussing the economics from the optimization work, Silver Mines cited pre-production capital costs in the range of AUD 300 million to a little over AUD 330 million, while noting those figures were about 14 months old and could be subject to inflationary pressure. The company said its life-of-mine all-in sustaining cost was less than AUD 25 per ounce, compared with an indicated spot price “about AUD 100” at the time of the presentation.
Management said the study assumptions used a US$29/oz silver price and an exchange rate of 0.67–0.68, translating to roughly AUD 43/oz. The company emphasized Bowdens’ revenue exposure to silver, stating that under study assumptions more than 85% of revenue comes from silver, and that at spot pricing it would be about 93%.
Mine plan and processing changes highlighted
Silver Mines described Bowdens as a deliberately straightforward open-pit development: a five-stage pit, a life-of-mine strip ratio of less than 1.5:1, and 2 million tonnes per annum of ore within roughly 5 million tonnes per annum of total material movement. The plan assumes day-shift-only mining, which management said was a choice rather than a permitting requirement.
The company also discussed metallurgical work that led it to shift away from a two-stream concentrate approach (lead and zinc concentrates) toward a bulk concentrate. Management said this change improved recoveries by about 6%, directed all silver into a concentrate paid at roughly 95%–96%, and simplified the processing route by removing cyanide from the plant—meaning no cyanide would go into tailings under that approach.
On the production profile, management said the plan ramps to over 5 million ounces per year, with a scheduled dip in years six through eight. The company said it believes that gap could be addressed through plant debottlenecking after start-up or potential higher-value underground development.
Permitting delays and near-term milestones
Management said 2025 was “a year we’d like to forget” due to permitting-related delays in New South Wales, but added that the company believes it is now progressing through a “known and navigable route” in that process. Near-term milestones outlined in the presentation included:
- Release of a definitive feasibility study (DFS) expected mid-year, updating the existing optimization work.
- Commencement of drilling aimed at evaluating underground potential, alongside underground studies.
- An objective to receive key permits in the second half of the year, with management stating confidence that permitting issues are “well behind us” and that the permit would be back by year-end.
Management also discussed mine planning sensitivity to silver prices, noting that the optimization was run at US$29/oz and that the DFS will likely be run around US$35/oz. The company said internal Whittle shell work suggested the open pit could expand substantially at higher prices, and that at around US$50/oz, the pit would push deeper without requiring an underground scenario.
California acquisitions: Calico silver and Kramer Hills gold
Silver Mines said it spent time during the prior year assessing potential assets in what it described as “Tier One” geopolitical jurisdictions, focusing on Australia, Canada, North America, and selected parts of Latin America. That process resulted in two acquisitions in San Bernardino County, California, which management described as pro-mining and home to more mines than any other county in North America.
At the Calico project, the company referenced nearby projects owned by TSX-listed Apollo Silver (Waterloo and Langtry) with about 175 million ounces unmined, and said its own ground to the north appeared more prospective based on its geological review. Silver Mines said historical production in the area included 25 million ounces of high-grade silver mined in the late 1800s and early 1900s, with limited modern follow-up. The company reported completing mapping and extensive rock-chip sampling, identifying 42 kilometers of alteration/epithermal vein systems. Management said most chip samples were generally above 150 grams per tonne silver, ranging between 150 and 400 grams, and also noted the presence of barite, which it described as a U.S. critical mineral. The company said it is working up drill targets and expects approximately five months for permitting once a drill plan is submitted.
Silver Mines also outlined the Kramer Hills project, located about 40 miles west, describing it as a gold opportunity acquired to provide exploration news flow while Bowdens permitting proceeds. The company said historical work included BP Minerals drilling in the early 1980s, outlining five open pits totaling just under 8 million tonnes at just under 2 grams per tonne gold. It added that a prior operator had fully permitted five pits for a heap-leach operation but encountered irrigation failure due to clay. Silver Mines said it cannot disclose historical resources under ASX rules, but has set a JORC exploration target of about 445,000 ounces. Management said it hopes to be drilling before mid-year and believes there may be sulfide mineralization at depth in addition to oxide gold near surface.
Concluding, management reiterated its view that the company offers significant leverage to silver on the ASX, highlighting Bowdens as a long-life, low-cost development and pointing to exploration catalysts from its U.S. projects while it works through the final stages of permitting in New South Wales.
About Silver Mines (ASX:SVL)
Silver Mines Limited primarily engages in the acquisition, exploration, and development of silver projects in Australia. It operates through two segments, Mining and Exploration Operations, and Agricultural Operations. The company also explores for copper, gold, lead, zinc, and polymetallic deposits. Its properties include Bowdens Silver Project, which has silver and polymetallic located in the Central Tablelands Region, New South Wales; the Barabolar Project consists of copper, gold, and silver prospects located in the Macquarie Arc in New South Wales; and Tuena Project with gold and silver prospects, which is located 80 kilometers south of the city of Orange in New South Wales.
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