Silver Mines secures $20m investment from Lundin, Rule-led fund

The financing proceeds will go towards near-term development of the company’s Bowdens silver project in central New South Wales, including drilling and engineering studies for a definitive feasibility study, as well as pre-construction of the mine site.

The polymetallic project hosts the largest known undeveloped silver resource in Australia, with 128 million tonnes grading 40 grams per tonne silver for 163 million oz. of silver (in all resource categories), according to a 2017 estimate. An initial reserve base of 29.9 million tonnes at 69 g/t silver was subsequently calculated.

In 2018, Silver Mines and its consultants completed a feasibility study based on this reserve estimate, outlining a single open-cut mine with an initial mine life of 16 years. The study demonstrated that the project could produce an average of 3.4 million oz. of silver per annum, together with approximately 6,900 tonnes of zinc and 5,100 tonnes of lead.

The Bowdens project hosts the largest known undeveloped silver resource in Australia

Due to higher silver grades in the early stages of mining, average production during the first three years of operation will be approximately 5.4 million oz. of silver per annum, plus 6,000 tonnes of zinc and 5,200 tonnes of lead, the company said.

Initial capital costs are estimated at A$246 million, including mine development, processing plant, tailings storage facility and power supply, with a further A$53.9 million expended over the life of mine in sustaining capital.

Silver Mines managing director Jo Battershill said the latest funding represents a “significant milestone” for the company as it continues to advance the Bowdens project, and it underscores the strong potential of the project and its team.