Silver Mines (ASX:SVL) reports a Definitive Feasibility Study (DFS) highlights the Bowdens Silver Project (BSP) as one of the world’s ‘premier undeveloped silver projects’, with ore reserves increasing 30% to 93.5 million ounces (Moz) of silver (Ag).
Ore reserves total 47.9 million tonnes (Mt) at 60.8g/t Ag for 93.5Moz, representing a 46% increase in ore tonnes compared to the 2024 ore reserve estimate.
The DFS has outlined initial capital cost estimates at $455 million with all-in-sustaining costs of $32.91/oz, with 91% of revenue expected to derive from silver.
Over the first five years, average production is projected at 4.7Moz Ag with all-in-sustaining costs of $20.47/oz and a pre-tax operating cash flow of $193 million per annum.
The study also notes a staged development approach.
Stage one focuses on 29.9Mt at 68g/t Ag for 65.4Moz over 16 years with a low strip ratio of 1.47:1.0, while stage two involves mining the remaining 18.3Mt for a total operational life of 26 years.
Economic results using a silver price of US$45/oz ($64/oz) and an exchange rate of $0.70 include a life-of-mine operating margin of $2.39 billion, a pre-tax net present value of $1.04 billion, and an internal rate of return of 31.5%.
Managing Director Jo Battershill says the completion of the Bowdens DFS is a milestone for the company and its shareholders.
“With a potential mine life now anticipated to be more than 25 years, the BSP is expected to deliver generational employment opportunities for more than 200 locals at steady-state operations,” Battershill says.
The updated Bowdens mineral resource estimate totals 173Mt @ 33g/t silver equivalent (AgEq) for 286Moz above a 25g/t AgEq cut-off, reflecting 2,248 assays from 2,265m drilled, updated geological domains, and improved metallurgy.
Development consent from the NSW Government remains under review by the Independent Planning Commission following an August 2024 court decision that set aside previous consent on a legal technicality.
Battershill says while it is not possible to provide a definitive timeline on the regulatory process, the company remains confident that consent will be returned in due course.
Silver Mines will now commence front-end engineering and design studies and review biodiversity offsetting options ahead of potential development, while also reviewing funding options for the required initial capital.
Silver Mines is focused on acquiring, exploring, and developing silver assets.
Write to Paula Fabe at Mining.com.au
Images: Silver Mines
