Silver Mines Limited (ASX: SVL) ('Silver Mines' or 'the Company') is pleased to provide an update on Mineral Resources for the Bowdens Silver Project located near Mudgee in New South Wales.
The Bowdens Mineral Resource Estimate has been updated by H&S Consultants using both Multiple Indicator Kriging, Ordinary Kriging and the reporting is compliant with the 2012 JORC Code and Guidelines.
Silver Mines Limited Managing Director Anthony McClure commented; 'The significant increase in the Mineral Resource at Bowdens Silver is an outstanding result and further demonstrates the quality of the Project's substantial mineralised system. In what was already Australia's largest known undeveloped silver deposit, this further increase is exceptional. We will now move rapidly in our Ore Reserve assessment as part of the optimisation of the Project's Feasibility Study in lead up to the proposed Bowdens Silver mine development. The high component of Measured and Indicated Mineral Resources reflects increased geological confidence and provides considerable scope in delivering further project longevity. This result validates our programs in delivering value for our shareholders, to the State of New South Wales, our local communities and other stakeholders.
Comparison with Previous estimates
In comparison to the 2017 Mineral Resource estimate, the updated Mineral Resource estimate is a 56% increase in tonnes, a 16% increase in silver ounces and a 44% increase in silver equivalent ounces, with an 8% decrease in silver equivalent grade. This decrease in silver equivalent grade is a result of significant tonnages that contain lower grade silver but include gold and increases in base metals (zinc and lead) in the deposit below the existing proposed pit design
Gold Estimate
Gold contained within this Mineral Resource estimate extends from near surface in the south, to depth in the Northwest zone and is situated dominantly along the Rylstone Volcanics and Coomber Formation basement contact. When considered, using a gold cut off of 0.2g/t, this part of the Mineral Resource estimate contains a total (all categories) of 19 million tonnes @ 0.31 g/t gold for 190,000 ounces of gold.
Mining and Metallurgical Methods, Parameters and other modifying factors considered to date.
The Company has engaged with GR Engineering Services Ltd to co-ordinate detailed flowsheet design criteria in conjunction with ongoing metallurgical work by KYSPYmet. The Bowdens Silver Mineral Resource is reported as a potential future open-pit mining scenario. The Mineral Resource estimate has been reported extending from surface to 300mRL which is approximately 320 metres below surface representing a potential volume for future open-pit optimisation models and expansion. The recoverable LMIK method implicitly incorporates internal mining dilution at the scale of the assumed SMU (selective mining unit). No specific assumptions were made about external mining dilution in the Mineral Resource estimates. There has been considerable previous metallurgical test work completed for the Bowdens Silver deposit. Additional metallurgical test work to confirm the results of previous work has been conducted and further optimisation is ongoing. Other likely modifying factors pertaining to this Resource have been extensively assessed by an approved Environmental Impact Statement.
About the Bowdens Silver Project
The Bowdens Silver Project is located in central New South Wales, approximately 26 kilometres east of Mudgee. The recently consolidated project area comprises 1,654 km2 (408,000 acres) of titles covering approximately 80 kilometres of strike of the highly mineralised Rylstone Volcanics. Multiple target styles and mineral occurrences have potential throughout the district including analogues to Bowdens Silver, high-grade silver-lead-zinc epithermal and volcanogenic massive sulphide (VMS) systems and copper-gold targets. Bowdens Silver is the largest undeveloped silver deposit in Australia with substantial resources and a considerable body of high-quality technical work already completed. The projects boasts outstanding logistics for future mine development
Contact:
Tel: +61 2 8316 3997
Competent Persons Statement
The information in this report that relates to Mineral Resources is based on work compiled by Mr Arnold van der Heyden who is a Director of H & S Consultants Pty Ltd. Mr van der Heyden is a member and Chartered Professional (Geology) of the Australian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC code). Mr van der Heyden consents to the inclusion in this report of the matters based on the information in the form and context in which it appears. The information in this report that relates to mineral exploration from the Bowdens Silver Project is based on information compiled by the Bowdens Silver team and reviewed by Dr Darren Holden who is an advisor to the company. Dr Holden is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC code). Dr Holden consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.
SILVER MINES LIMITED 