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Highlights
- - Silver Mines (SVL) completes an optimisation study for the Bowdens Silver Project, demonstrating robust economics.
- - Project features an initial 15-year mine life with substantial silver output and high operating margins.
- - Potential future expansions include underground development and processing plant upgrades.
Silver Mines (ASX:SVL) has completed an optimisation study for its Bowdens Silver Project in New South Wales. The project, one of Australia's largest undeveloped silver deposits, features a 15-year mine life with significant output. Bowdens is set to generate 53 million ounces of silver, alongside 92,000 tonnes of zinc and 67,000 tonnes of lead. Over 86% of the project’s revenue will come from silver, showcasing its strong linkage to the global silver market.
The study confirmed an average margin exceeding 45% and a pre-tax internal rate of return of over 20%. Life-of-mine projections include a pre-tax net present value (NPV) of A$359 million, rising to A$528 million at current silver prices.
Optimised Mine Design
The project’s design includes a single open-pit mine, utilising drill and blast techniques for ore extraction. Mining operations are scheduled over 15 years, with 28.1 million tonnes of ore extracted at 71 grams per tonne of silver. Initial capital costs are projected at A$331 million, with all-in-sustaining costs (AISC) estimated at A$24.80 per ounce of silver.
The optimisation highlighted a production capacity of 4.25 million ounces of silver annually over the first decade. Additional financial metrics include pre-tax operating cash flow of A$84 million per year, increasing to A$103 million at current prices.
Future Expansion Opportunities
Bowdens Silver Project holds significant potential for future expansions. Plans include developing high-grade underground resources, implementing ore-sorting technology to upgrade low-grade ores, and expanding processing capabilities to extend the mine's life further.
Regulatory Progress and Next Steps
The project's advancement hinges on obtaining development consent from the New South Wales government, alongside federal environmental and mining licenses. Despite delays, Silver Mines (SVL) remains confident about achieving approval.
With 70% of the engineering completed at a definitive feasibility study (DFS) level, Silver Mines plans to advance the project toward front-end engineering design (FEED). Discussions with financial partners for funding are also underway to ensure smooth progression once all approvals are secured.
Silver Mines managing director Jo Battershill expressed optimism, stating the focus remains on delivering economic and community benefits through the Bowdens Silver Project.
The Bowdens optimisation study underscores its potential as a high-margin silver operation, primed to deliver strong returns and long-term value.
