A $25 million takeover deal is helping a metal producer move forward with its new silver mine planned for midwest New South Wales.
Silver Mines recently finalised its farm-in and joint venture agreement with Thomson Resources for the Bowdens Silver Project at Mudgee, 261km northwest of Sydney New South Wales.
The deal specifically mentions the EL7391 tenement, which covers 50 sq km. Silver Mines will buy an 80 per cent stake in EL7391 through a $300,000 expenditure program in addition to completing 1km of drilling before the end of 2018.
Bowdens Silver is the largest undeveloped silver deposit in Australia with what outstanding logistics for future mine development. The project area comprises of 1.65 sq km of titles, covering approximately 80km of strike from highly mineralised rylstone volcanics. There are also potential targets containing high grade silver-lead-zinc and copper-gold.
Silver Mines will be the manager while Thomson Resources’ interests will be free-carried until the feasibility study is complete.
“Silver Mines is reviewing all past works and planning further exploration programs including initial drilling,” Silver Mines company secretary Trent Franklin says.
Thomson Resources previously interpreted geophysical and geological data and also did an airborne versatile time-domain electromagnetic (VTEM) geophysical system survey. They found substantial 1km by 400 metre silver, gold, zinc and lead geochemistry anomaly. This anomaly is coincident with VTEM anomalism, including two VTEM anomalies showing high conductivity that potentially represent massive-sulphide targets.
Newmont Exploration previously drilled in distal parts of the alteration system, with one hole completed in the soil anomaly area.
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