Silver Mines signs EL 7391 agreement with Thomson Resources
As per ASX announcement on 14th December 2018, Silver Mines Limited (ASX: SVL) signed an agreement with Thomson Resources Limited (ASX: TMZ) regarding EL 7391, located approximately 15 kilometres south of the company’s new Barabolar Project.
Silver Mines Limited is Australia’s one of the fastest growing silver mining and development companies. The company owns Barabolar and Bowdens Silver Project in New South Wales which seems to hold great potential as Australia’s largest undeveloped silver project. It also owns the Conrad and Webbs significant high-quality silver projects in New South Wales.
Silver mines holds great future growth potential eyeing key purchase and development of quality silver projects in near term.
Founded in 2009, Thomson Resources in Australia’s leading metal explorer and supplier. It deals with metal digging ranging across gold, copper, zinc and even lead and tungsten. Its current flagship project is Bygoo tin project adjacent to Ardlethan, the biggest tin mine in NSW
EL 7391 is contiguous to the Bowdens Silver Project. It is located approximately 15 kilometres south of the company’s new Barabolar Project. It is present 25 kilometres east of Mudgee in New South Wales.
The licence is a potential rich source of porphyry sediments, with the attention being on the Macquarie Arc site.
Upon renewal of EL 7391, the license will be valid for six years.
As per the agreement, the company will acquire 80% interests in EL 7391 through a $380,000 expenditure program over the next three years, in addition to completion 1000 metres of drilling prior to December 2018. Silver mines will be the owner of the collaboration and Thomson Resources’ interests will be independent until the completion of a viability test study. Post the study, terms of joint venture will function. The company has already exhausted $80,000.
Under the Joint Venture program, both Silver Mines and Thomson Resources parties would be ingesting capital for the expenditure considering their respective interests,
Highlights of Silver Mines quarterly report for the period ended 30th September 2018
- Drilling commenced at the Barabolar Project
- Exceptional porphyry and polymetallic targets
- Initial program of up to 7,500 metres of reverse circulation and diamond drilling.
- Barobalar Induced Polarisation (IP) geophysical survey completed and integrated with geochemistry and geology.
Post the announcement, Silver Mines shares are trading high at around $0.042. The shares have demonstrated tremendous performance over last three months, generating an impressive return of approximately 59% to its investors. The company has a market capitalization of $26.59 million and EPS of -0.005 AUD
TMZ stock, on the other hand, has been performing poorly with a YTD return of -38%. Over last 1-month share price have fallen by 20% from $0.035 as on November 5, 2018 to $0.028 as on December 5, 2018.
Looking at commodity price, current Silver spot price is recorded as $472.65/kg. The precious metal has shown a positive return of 4.80% to its investors over last 30 days.
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