The financing proceeds will go in the direction of near-term improvement of the corporate’s Bowdens silver challenge in central New South Wales, together with drilling and engineering research for a definitive feasibility research, in addition to pre-construction of the mine web site.
The polymetallic challenge hosts the most important recognized undeveloped silver useful resource in Australia, with 128 million tonnes grading 40 grams per tonne silver for 163 million oz. of silver (in all useful resource classes), based on a 2017 estimate. An preliminary reserve base of 29.9 million tonnes at 69 g/t silver was subsequently calculated.
In 2018, Silver Mines and its consultants accomplished a feasibility research primarily based on this reserve estimate, outlining a single open-cut mine with an preliminary mine lifetime of 16 years. The research demonstrated that the challenge might produce a mean of three.4 million oz. of silver every year, along with roughly 6,900 tonnes of zinc and 5,100 tonnes of lead.
Because of greater silver grades within the early phases of mining, common manufacturing in the course of the first three years of operation will likely be roughly 5.4 million oz. of silver every year, plus 6,000 tonnes of zinc and 5,200 tonnes of lead, the corporate stated.
Preliminary capital prices are estimated at A$246 million, together with mine improvement, processing plant, tailings storage facility and energy provide, with an extra A$53.9 million expended over the lifetime of mine in sustaining capital.
Silver Mines managing director Jo Battershill stated the newest funding represents a “important milestone” for the corporate because it continues to advance the Bowdens challenge, and it underscores the sturdy potential of the challenge and its group.