Silver Mines Ltd. has released the results of its definitive feasibility study (DFS) for the Bowdens silver project, confirming the asset as one of the world’s premier undeveloped silver deposits.
The study is underpinned by an updated mineral resource and ore reserve estimate that boosted contained silver reserves by 30 per cent to 93.5 million ounces (47.9 million tonnes at 60.8 grams per tonne of silver). Silver is projected to account for 91 per cent of the project’s total revenue.
The initial stage 1 mine plan outlines a 16-year operational life targeting 29.9 million tonnes of ore to extract 65.4 million ounces of silver.
Incorporating a second stage supported by pre-feasibility level studies extends the potential life of mine (LOM) to 26 years, generating a pre-tax net present value of AU$1.04 billion and an internal rate of return (IRR) of 31.5 per cent at a base silver price assumption of US$45 per ounce.
Pre-production capital costs for stage 1 are estimated at AU$455 million, with life of mine all-in sustaining costs (AISC) projected at AU$32.91 per ounce.
Over the first five years of operation, average annual silver output is expected to hit 4.7 million ounces at a significantly lower AISC of AU$20.47 per ounce.
Silver Mines Managing Director Jo Battershill said: “With a potential mine life now anticipated to be more than 25 years, the BSP is expected to deliver generational employment opportunities for more than 200 locals at steady state operations.
“With the project’s consent now in the hands of the NSW government and Independent Planning Commission, it is important to focus on the economic benefits that the BSP can bring to the community and investors alike.”
With the DFS complete, Silver Mines will now advance front-end engineering and design (FEED) studies and review its biodiversity offsetting strategy while awaiting Development Consent from the NSW state government.
