Silver Mines Limited is set to commence a 2,000–3,000m diamond drilling program at its recently acquired Elsienora Project, targeting promising silver and gold mineralisation with historic results hinting at McPhillamys-style deposits.
- Drilling to start at Elsienora Project adjacent to Tuena Gold Project
- Historic drilling shows significant gold and silver intercepts
- Picker Prospect identified as potential McPhillamys-style gold target
- Initial program planned for 2,000–3,000m diamond drilling
- Exploration includes geophysical surveys and soil sampling on adjoining licences
Context and Project Overview
Silver Mines Limited (ASX:SVL) has announced the imminent commencement of a diamond drilling program at its Elsienora Project (EL9588), acquired in 2023 and situated adjacent to the company’s Tuena Gold Project in New South Wales. The project area, rich in historical exploration data dating back to the 1970s, hosts multiple prospects with significant silver and gold mineralisation potential.
The Elsienora Project is strategically located within the Godolphin-Copperhania Fault Corridor, a geological setting known for hosting substantial mineral deposits, including Regis Resources’ McPhillamys Gold Deposit approximately 60 kilometres to the north. Silver Mines’ renewed focus on this area underscores the potential for discovering similar epigenetic volcanogenic massive sulphide (VMS) style mineralisation.
Historic Drilling Highlights and Geological Potential
Historic drilling results across the tenement reveal encouraging intercepts such as 29 metres at 1.53 g/t gold from surface at the Cuddyong Prospect, and 21 metres at 0.89 g/t gold from 207 metres at the Elsienora Prospect. Notably, the Picker Prospect stands out with gold-arsenic-silver-barium soil anomalies exceeding 20 ppb gold over a strike length of more than 1.4 kilometres, suggesting a mineralisation style analogous to McPhillamys.
Previous reverse circulation drilling by Alkane Resources in 2015 at Picker returned intervals including 18 metres at 0.44 g/t gold and 5.4 g/t silver, and 8 metres at 0.55 g/t gold and 23.2 g/t silver. These results, combined with the geological setting of mid to late Silurian volcaniclastics and pyritic schists, support the prospectivity for both orogenic gold and sulphide-rich disseminated gold-silver-barium mineralisation.
Exploration Strategy and Next Steps
Silver Mines plans to undertake an initial diamond drilling campaign of 2,000 to 3,000 metres targeting both gold and silver mineralisation. This program, pending statutory approvals, is expected to commence within the current quarter. Complementary exploration activities include induced polarisation (IP) geophysical surveys, reprocessing of airborne electromagnetic and magnetic data, and reconnaissance soil sampling and geological mapping on the adjoining EL8974 licence.
The company is also progressing land access agreements to explore historically productive gold mines within the broader project area, including Washington, Victoria, Royal George, and Dog Trap. This integrated approach aims to validate and extend historic results, particularly at underexplored targets like Picker, which could materially enhance Silver Mines’ resource base.
Caution and Market Implications
While historic data provides a compelling foundation, Silver Mines cautions that verification through new drilling is essential to confirm mineralisation continuity and grade. The company’s methodical review and planned exploration program reflect a disciplined approach to unlocking value from this underexplored asset.
Given the scale of the project and the quality of historic results, successful drilling outcomes could significantly bolster Silver Mines’ position in the NSW gold and silver exploration landscape, complementing its flagship Bowdens Silver Project.
Bottom Line?
As drilling kicks off at Elsienora, Silver Mines positions itself to potentially unearth a new McPhillamys-style gold discovery.
Questions in the middle?
- Will the upcoming drilling confirm the McPhillamys-style mineralisation at Picker Prospect?
- How might new assay results impact Silver Mines’ resource estimates and valuation?
- What are the timelines and milestones for exploration on the adjoining EL8974 licence?