Regulatory Setbacks and US Expansion: Silver Mines’ Next Challenges

Regulatory Progress at Bowdens Silver Project

Silver Mines Limited continues to navigate the complex regulatory landscape surrounding its Bowdens Silver Project in New South Wales. Following a 2024 Court of Appeal decision that set aside the previously granted development consent, the company has actively engaged with the Department of Planning, Housing and Infrastructure (DPHI) and other government bodies to reinstate approval. A key development this quarter was the Planning Secretary's determination that the 66kV power line required to service the mine does not form part of the single proposed development, effectively restoring the prior planning approach and separating power infrastructure approval from the main project consent.

Subsequent to the quarter, Silver Mines provided all requested information to assist with the redetermination of the Bowdens Development Application, signaling steady progress toward resolving outstanding regulatory hurdles. This development is critical for advancing the project, which holds Australia's largest undeveloped silver deposit and represents a cornerstone asset for the company.

Strategic Expansion into US Silver and Gold Projects

In a significant portfolio diversification move, Silver Mines completed the acquisition of the Calico North Project and commenced a farm-in agreement to earn up to an 80% interest in the Kramer Hills Project, both located in California's prolific Mojave Desert. These projects, with historical production and extensive untested mineralised structures, offer promising exploration optionality with a relatively low initial cash outlay of US$1.1 million plus equity issuance.

The Kramer Hills earn-in agreement with Lustrum Gold Corp includes staged exploration expenditure commitments and share issuances, with Silver Mines positioned as the joint venture manager. This strategic entry into the US market complements the company's Australian assets and broadens its exposure to high-grade gold and silver targets in a well-established mining jurisdiction.

Ongoing Exploration and Technical Advancements

Exploration activities remain robust, with a diamond drilling program completed at Bowdens totaling over 2,200 metres, including extensional drilling below current ore reserves. Assay results are anticipated in the latter half of 2025, which will inform concentrate sample production for potential offtake partners and optimize processing techniques.

At the Tuena Gold Project in NSW, the company completed 1,705 metres of diamond drilling across seven holes targeting historically productive gold reefs. Results are expected in the third quarter of 2025, with ongoing data reviews guiding future exploration efforts.

Silver Mines is also advancing research and development initiatives focused on predictive bulk rock property technologies and geo-metallurgical characterisation in collaboration with the University of New South Wales and NSW Mineral Systems Team. These efforts aim to enhance mining and exploration efficiency through cutting-edge scientific methods.

Financial Position and Corporate Updates

Financially, Silver Mines ended the quarter with a strong cash balance of A$19.3 million, having invested A$3.12 million in exploration and evaluation activities. The company reported no mining production during the period, consistent with its development and exploration focus. Additionally, the company transitioned its share registry services to Xcend Pty Ltd, reflecting ongoing corporate governance enhancements.

Overall, Silver Mines is strategically advancing its flagship project through regulatory channels while simultaneously expanding its asset base and technical capabilities, positioning itself for future growth in both Australian and US markets.