Silver Mines Limited (ASX: SVL): Exploring Australia’s Largest Undeveloped Silver Deposit

Key Highlights

Robust Ore Reserves: 32.8 million tonnes grading 68 g/t silver, translating to 71.7 million ounces of contained silver.

High Revenue Contribution: Silver accounts for 86% of the project’s total revenue.

Improved Economics: Life of Mine (LOM) pre-tax NPV5% of A$359 million and IRR of 21%.

Environmentally Progressive: Transition to a dewatered tailings storage facility and minimized environmental footprint.

Strategic Location: Largest undeveloped silver deposit in Australia, located near Mudgee, New South Wales.

Silver Mines Limited (ASX: SVL) has provided an update on its Bowdens Silver Project (BSP), located in central New South Wales. As Australia’s largest undeveloped silver deposit, the project is expected to deliver significant output of silver, zinc, and lead. Recent studies have provided updates on its reserves and operational plans.

Bowdens Silver: Key Facts

The Bowdens Silver Project’s Ore Reserve estimate comprises 32.8 million tonnes with a silver grade of 68 g/t, resulting in a contained silver content of 71.7 million ounces. The project also includes by-products such as 123.3 kt of zinc and 95.6 kt of lead. These figures represent an increase from the 2018 estimates.

The project’s financial outlook includes a projected pre-tax Net Present Value (NPV5%) of A$359 million and an Internal Rate of Return (IRR) of 21%. Additionally, its life-of-mine operating margin is estimated at A$948 million.

Operational Updates and Changes

The 2024 Optimisation Study introduced several updates to enhance the project’s operational and environmental efficiency. Key changes include:

Processing Improvements: Transition to a single bulk concentrate to enhance silver recovery and simplify operations.

Tailings Management: Adoption of a dry-stack tailings storage facility to minimize environmental risks.

Infrastructure Adjustments: Modifications to reduce visual and environmental impact in surrounding areas.

These updates aim to improve the project’s economic and environmental viability while addressing community concerns.

Market Context

Silver accounts for 86% of the project’s total revenue, underscoring its significance. The increasing demand for silver in renewable energy technologies and industrial applications highlights the strategic importance of this project. The Bowdens Silver Project is also listed under the New South Wales Critical Minerals and High-Tech Metals Strategy.

Community and Environmental Considerations

Efforts have been made to minimize community disruption and environmental impact. For instance, the relocation of Maloneys Road and the redesign of infrastructure are measures aimed at balancing operational needs with community and environmental priorities. Additionally, the shift to dry-stack tailings storage aligns with best practices in waste management.

Future Goals

The project’s next steps include:

Finalizing the Definitive Feasibility Study (DFS) and progressing to Front-End Engineering Design (FEED).

Securing regulatory consents and permits.

Engaging in detailed funding discussions with potential partners.

The Bowdens Silver Project is progressing through its development phase, with updates expected as further approvals and studies are completed.

The Bowdens Silver Project is positioned as a significant development in Australia’s mining landscape. With robust ore reserves and ongoing efforts to optimize operations and minimize environmental impact, the project continues to move toward its operational goals.