Bowdens Silver Reserves Rise 7.5% to 71.7Moz; $25M Capital Secured

Funding and Regulatory Progress

Silver Mines Limited has taken a significant step forward in advancing its Bowdens Silver Project in New South Wales by successfully raising $25 million through a placement to institutional and sophisticated investors. This capital injection is earmarked primarily for securing development consent approvals, advancing engineering studies, community engagement, and ongoing exploration activities.

Importantly, recent amendments to the Environmental Planning and Assessment Act 1979 (NSW) have created a clearer regulatory pathway for the company to seek reinstatement of the development consent for Bowdens. After the NSW Court of Appeal set aside the previous consent, bipartisan legislative changes now empower the Planning Secretary to reassess the project’s development application, which remains active and pending final determination by the Independent Planning Commission.

Resource Upgrade and Optimisation

The company announced an updated Ore Reserve estimate that reflects a 10% increase in ore tonnes compared to the 2018 estimate, now totaling 32.8 million tonnes at 68 g/t silver. This translates to 71.7 million ounces of contained silver, a 7.5% increase, with silver forecast to contribute over 85% of project revenue, up from around 70% previously. The update benefits from improved metallurgical recoveries and a refined mine design that reduces environmental disturbance.

Complementing the reserve upgrade, the recently completed Optimisation Study demonstrates robust project economics. Key metrics include a pre-tax NPV (5%) of A$359 million, an IRR of 21%, and a payback period of 3.9 years from production start. The study also highlights a low strip ratio of 1.49:1 and an all-in sustaining cost of A$24.80 per ounce, positioning Bowdens as one of the most cost-effective silver projects globally.

Exploration and Future Potential

Exploration efforts continue with drilling underway at the Bara Creek Prospect, a greenfield target within the Bowdens project area, and ongoing work at the Tuena Gold Project. Bara Creek is considered a high-priority epithermal target with geological similarities to Bowdens, while Tuena offers potential for structurally controlled gold deposits analogous to nearby discoveries. These programs aim to expand the company’s resource base and add value beyond the current project footprint.

Financial Position and Next Steps

At the end of the quarter, Silver Mines held cash reserves of A$27.14 million, bolstered by the recent placement. The company has terminated a previous convertible debenture funding agreement in favor of equity capital, reflecting confidence in its funding strategy. Moving forward, the immediate focus remains on securing development consent under the new legislative framework, followed by progressing project approvals and detailed engineering design.

With a strengthened balance sheet, an enhanced resource base, and a clear regulatory pathway, Silver Mines is well positioned to unlock the value of the Bowdens Silver Project and deliver on its ambition to become Australia’s pre-eminent silver company.