Silver Mines Limited announced recent assay results from the underground resource drilling program at the Bowdens Silver Project located near Mudgee in New South Wales. Diamond drilling has continued to test mineralised zones for potential underground mining scenarios at the Bowdens Silver Deposit, with a recent focus on the Bundarra Zone. The Bundarra Zone is dominated by wide zones of high-grade zinc and lead mineralised lenses associated with gold, silver and more recently copper.

Targets (Aegean, Northwest and Bundarra Zones) are situated below the bulk-tonnage open-pit Ore Reserve of the Bowdens Deposit. Results have been received for holes BD21039, BD21041, BD21042, BD21043, BD21044, BD21045, BD21046, BD21048 and BD22004. The resource drilling has focused on the Aegean and Northwest Zones through 2021, with recent drilling being focused on extending the Bundarra Zone south, west and east, as well as testing for greater economic gold potential at depth below the current open-pit Ore Reserve.

The Bundarra Zone is a series of base metal (zinc and lead) dominant, semi massive to massive sulphide lenses below the current silver-zinc-lead Ore Reserve. Drill holes testing the extent of mineralisation beneath a dacite intrusion have shown that mineralisation is open along major structures (Gully and Eastern Faults). The Bowdens System appears to be zoned around the dacite intrusion with silver (zinc and lead) deposited above and gold (silver, zinc, lead & copper) deposited below the dacite.

New drill results from BD22004 (partial results) establish the Bundarra Zone to have a strike extent of 500 metres north to south while results from BD21044 establish a width of 300 metres east to west while continuing down dip to the west for at least 475 metres to BD20001. The thickness ranges from a few metres to >20 metres. BD21048 was drilled to test for western extensions from BD21042 and results from the upper Bundarra lens have established at least a 75-metre continuation of high-grade mineralization down dip.

Further assay results are pending in this hole, with the remainder of the hole intersecting mineralisation of quartz-sulphide veins. Significant intercept includes: 1.8 metres at 1,181 g/t silver equivalent from 225 metres. BD21039 and BD21043 were testing eastern extensions to BD17011.

Both holes intercepted mineralisation above the Bundarra Zone within the current Ore Reserve, as well as continuous mineralisation below the dacite as part of the lower Bundarra lenses. Gold intercepted in BD21044 in the east of the Bundarra Zone, in addition to results from BD21007 90 metres to the west (refer release dated 27th July 2021), is significant in terms of extent and grade within the Bowdens Deposit. Considering gold only, with a 0.1 g/t cut-off (10 metre internal dilution) and individual assays up to 6.75 g/t gold, intersections in BD21044 can be distinguished as: 34 metres at 0.16 g/t gold from 114 metres, 4 metres at 0.31 g/t gold from 175 metres, 17 metres at 0.67 g/t gold from 192 metres, including: 4.0 metres at 2.38 g/t gold, 116 metres at 0.31 g/t gold from 223 metres, including; 1.0 metres at 1.86 g/t gold from 256 metres &, 2.0 metres at 1.81 g/t gold from 262 metres &, 3.0 metres at 2.44 g/t gold from 280 metres, 5.5 metres at 0.65 g/t gold from 352.5 metres, including 2.0 metres at 1.62 g/t gold from 355 metres, and 2.2 metres at 0.32 g/t gold from 389 metres.

Importantly, visible gold has been identified for the first time ever at the Bowdens Deposit at depth in BD22004. If the continuity of these results is established from ongoing drilling, this presents an excellent gold exploration target. Fire assays to date indicate a degree of coarse gold.

Results from BD21044 provide significant evidence for potentially economic gold mineralisation, both associated with the Bundarra Zone but also as a separate mineralisation style associated with silver at depth and to the east. A substantial intercept of silver and gold from BD21018 is approximately 575 metres directly south and up plunge of BD21044 with no other drilling present at least within a window of 200 metres. The Company currently has four drilling rigs on site nearing completion of the 30,000 metre diamond drilling program targeting high-grade zones outside of the current open pit Ore Reserve of the Bowdens Silver Deposit.

Results from this drilling will form the basis for a Mineral Resource estimate as part of a Scoping Study of underground mining scenarios. The program of drilling will complete in 1st quarter 2022 in line with the outstanding new results and extensions from the Bundarra Zone. The Mineral Resource assessment is expected to be completed during the 2nd quarter 2022.