- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Silver Mines Moves Ahead at Bowdens with Feasibility Study
According to Silver Mines, Bowdens is Australia’s highest-grade undeveloped silver project. The next step forward will be an environmental impact statement.
Silver Mines (ASX:SVL) continues to make progress on its Bowdens silver project in New South Wales, with the newest milestone being the release of a feasibility study.
According to the study, the open-cut mine will have an initial life of 16 years, with average production expected at 3.4 million ounces of silver per year. This is in combination with the mine’s predicted output of 6,900 tonnes of zinc and 5,100 tonnes of lead per year.
During its first three years of operation, Bowdens will produce closer to 5.4 million ounces of silver, along with 6,000 tonnes of zinc and 5,200 tonnes of lead, due to higher silver grades in early mining stages.
The project, which is wholly owned by the company, has a measured, indicated and inferred resource of 128 million tonnes at 40 g/t silver, 0.38 percent zinc and 0.26 percent lead using a cut off of 30 g/t silver equivalent; that comes out to 275 million silver equivalent ounces.
Meanwhile, a recent maiden proven and probable ore reserves release indicates reserves of 29.9 million tonnes at 69 g/t silver, 0.44 percent zinc and 0.32 percent lead.
Initial capital costs, which include mine development, a processing plant, a tailings storage facility and power supply, are estimated at AU$246 million. On the operational side, the company predicts that life-of-mine C1 costs will be AU$15.47 per ounce, with all-in sustaining costs of AU$17.25 per ounce.
Bowdens’ post-tax NPV is pegged at AU$70.58 million while its post-tax IRR stands at 17.9 percent, both at a 5-percent discount.
“The study provides solid backing for our submission of a Development Application to the New South Wales Government. With the project clearly defined, we are moving to rapidly complete the Environmental Impact Statement,” said Anthony McClure, Silver Mines’ managing director.
Silver prices used for financial modeling were US$21.50 per ounce in 2020, US$22 per ounce in 2021 and US$22.50 per ounce in 2022. Zinc and lead prices were estimated at US$1.25 per pound and US$ per pound, respectively.
According to McClure, Bowdens is “highly leveraged to an accretive commodity price environment,” meaning if prices for the metals being mined increase more than expected the mine will benefit.
For example, he said, “a 20% increase in the silver price and minor metals leads almost a 240% increase in the project’s Net Present Value.”
Silver Mines’ share price was sitting at AU$0.047 at close of day on Friday (June 15).
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
The Beginner’s Guide to Investing in Gold (Australia Edition)
Ready to invest in gold? Our beginner's guide makes it simple to get started.
Download your investing guide today.
Learn About Exciting Investing Opportunities in the Gold Sector
Your Newsletter Preferences
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.
A graduate of Durham College's broadcast journalism program, Olivia has a passion for all things newsworthy. She got her start writing about esports (competitive video games), where she specialized in professional Call of Duty coverage. Since then, Olivia has transitioned into business writing for INN where her beats have included Australian mining and base metals.
Learn about our editorial policies.