The Silver Mines Ltd (ASX: SVL) share price is in focus after the company released its quarterly report, highlighted by the Bowdens Silver Project's upgraded Definitive Feasibility Study (DFS) and a 46% boost to ore reserves.
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What did Silver Mines report?
- Ore reserves at Bowdens Silver Project increased 46% to 47.9 million tonnes, containing 93.5 million ounces of silver.
- Life of Mine plan extended to 26 years, with anticipated annual average silver production of 3.2 million ounces.
- Post-tax net present value (NPV5%) for the project is estimated at $736 million, up 191% from 2024.
- Operating margin for the Life of Mine pegged at $2.39 billion, with a payback period of 3 years from production start.
- Quarter-end cash reserves were $35.8 million.
- Raised $7.98 million via exercise of outstanding unlisted options during the quarter.
What else do investors need to know?
Silver Mines completed an updated Mineral Resource Estimate for Bowdens, now totalling 173 million tonnes at 33 g/t silver, 0.39% zinc, and 0.28% lead. The definitive feasibility study paves the way for a staged development approach, with stage one focusing on 29.9Mt over 16 years, and stage two planned pending further approvals.
The company acquired a strategic parcel of land next to Bowdens, improving water security, biodiversity, employee housing, and infrastructure options for the project. Exploration work continued in both its US projects, Calico North and Kramer Hills, with impressive rock chip results—over 40 samples exceeded 50 g/t silver and some up to 1,960 g/t silver. Drill planning is now underway for both tenements.
What's next for Silver Mines?
The company aims to progress approvals for stage two of Bowdens, which will increase the mine's operational life and output. Further, Silver Mines plans to advance exploration drilling at its Californian projects later this year, guided by recent strong assay results and ongoing geophysical surveys.
With robust cash reserves and a strengthened project base, the company is focused on advancing Bowdens toward development consent and maximising value across its expanding project portfolio.
Silver Mines share price snapshot
Over the past 12 months, Silver Mines shares have risen 4%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.
