Legal Challenges Delay Bowdens Project, But Drilling Results Boost Silver Mines’ Outlook
Silver Mines Limited has reported its best-ever drilling results at the Bowdens Silver Project in NSW while navigating a complex regulatory redetermination process. Exploration advances continue across its Australian and US projects, supported by a strong cash position.
- Record 116m @ 245g/t silver intercept at Bowdens Silver Project
- Ongoing redetermination of Bowdens development consent after court appeal
- Exploration progressing at Calico North and Kramer Hills in California
- Promising gold and base metal results at Tuena Project in NSW
- Strong cash reserves of A$40.5 million with A$3.8 million spent on exploration
Bowdens Silver Project Breakthrough
Silver Mines Limited has delivered a standout quarter with the announcement of the largest mineralised intercept ever recorded at its flagship Bowdens Silver Project in New South Wales. The recent diamond drilling program returned an exceptional intercept of 116 metres grading 245 grams per tonne of silver, alongside notable lead and zinc values. This intercept surpasses the previous best drilled in 2003, underscoring the project's significant resource potential.
The drilling also confirmed mineralisation extending beneath the current ore reserve, opening avenues for further infill and extension drilling planned for 2026. These results not only reinforce Bowdens’ status as Australia's largest undeveloped silver deposit but also enhance its attractiveness as a high-margin silver project.
Navigating Regulatory Challenges
Despite the promising technical progress, Silver Mines is contending with a complex regulatory environment. The company is actively pursuing a legally robust redetermination of the Bowdens Project Development Application following a 2024 Court of Appeal decision that set aside the previous development consent. Legislative amendments have since empowered the NSW Planning Secretary to clarify project components requiring consent, a move that Silver Mines welcomed as it reinstates the prior assessment approach.
In consultation with the NSW Department of Planning, Housing and Infrastructure, Silver Mines is refreshing ecological surveys and updating its biodiversity assessment to comply with the Biodiversity Conservation Act 2016. This proactive step aims to mitigate legal risks and support a successful redetermination expected by mid-2026.
Exploration Beyond Bowdens
Exploration activities continue to advance at Silver Mines’ other projects. In California, initial fieldwork at the Calico North and Kramer Hills projects is progressing towards drill targeting, with drilling anticipated in the first half of 2026. These projects lie within a prolific mining district, enhancing their strategic value.
Meanwhile, the Tuena Project in NSW has yielded encouraging gold and base metal intercepts from a recent seven-hole drilling program. The results highlight a mineralised system along a significant regional fault corridor, with several prospects showing potential for higher-grade zones. Silver Mines plans further exploration to fill data gaps and refine targets across this underexplored area.
Financial Position and Outlook
Financially, Silver Mines remains well-capitalised with cash reserves of A$40.5 million at the end of December 2025. The company raised approximately A$1.9 million through the exercise of options during the quarter and invested A$3.8 million in exploration and evaluation activities. No mining production occurred during the period, reflecting the project's development stage.
Silver Mines’ ongoing research and development efforts, including collaboration with the University of New South Wales, aim to enhance mining and exploration efficiency through innovative geological and metallurgical integration.
Bottom Line?
As Silver Mines balances record drilling success with regulatory hurdles, the next 12 months will be pivotal in defining Bowdens’ path to production and unlocking value across its portfolio.
Questions in the middle?
- When will the NSW Independent Planning Commission finalize the redetermination of Bowdens’ development consent?
- How might updated biodiversity assessments impact project timelines and conditions?
- What are the prospects for Silver Mines to convert promising Tuena Project results into a viable resource?
