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 PLUS; SVLP
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Company Statement
Silver Mines Limited (ASX:SVL, PLUS SVLP) is currently exploring for silver rich deposits in Australia; specifically in the New England region of north-eastern New South Wales as well as the West Coast of Tasmania and the Lachlan Fold Belt in NSW. Our strategy is to rapidly discover and develop one or more high-grade silver rich deposits providing cash-flow to support the Company's ongoing exploration, development and investment goals.
In 2009, SVL remained focused on assessing our New England project suite with further excellent results again yielded from a number of key prospect areas. The Webbs Silver project continued to be the hub of the Company’s exploration efforts with over 80% of our budget expended on this very promising project.
Our Mole River projects have also provided some excellent targets with a number of prospects ready for drilling. Although the global financial markets put pressure on our work programs our ability to rapidly adapt to this meant that we were able to slow our expenditure quickly to conserve shareholder funds and survive this challenging period of uncertainty.
With global markets beginning to show signs of recovery toward the end of the financial year and precious metals, in particular silver, maintaining strong appreciation in value, funding for our growth strategy has become more accessible and as such we see a solid year ahead for the Company to continue to grow and evolve.
The Company plans to continue with its exploration in 2009/10 based on the positive results we continue to receive and the opportunities we are creating for ourselves. All in all the Company is very pleased with the efforts of our technical team and their commitment to wise expenditure that continues to add value to our properties. Our 100% owned Webbs Silver Project continues to show all the indications of becoming a commercial mining operation.
Current Operations
Project Summary
EMMAVILLE AREA, NSW
EL5674 – WEBBS SILVER PROJECT (100% SVL)
The Webbs Silver Project continues to provide SVL with the best near term opportunity, at present, to develop a mining operation. Our continued focus has been to delineate sufficient near surface (at depths less than 150m) silver rich polymetallic mineralisation to enable the development of one or more small open pits.
Our interpretation of the project is that a north-south trending mineralised envelope exists over a strike length of approximately 2,000m with the historic Webbs Silver Mine located in the northern third. The envelope is up to 15 metres wide in places and contains a series of higher grade silver-rich polymetallic veins up to five metres wide and up to 100 metres long and at least 250 metres deep from the surface – as is the case at the historic Webbs Silver Mine. These higher grade lodes have been the primary target for the exploration to date, with the highest drill intersection containing 1m at 10,550 g/t silver (or 339 ounces per tonne silver).
Our exploration team has successfully demonstrated that the interpretation is valid and have thus far delineated eight high priority targets within the mineralised envelope. Of these eight targets only four have been drilled by SVL and silver-rich polymetallic mineralisation has been intersected in all four. The product of this drilling is a Global Inferred Resource estimate.
Drilling and Resource Summary:
- Almost 10,000m of drilling completed, with a further 5,000m planned to begin in March 2010.
- Webbs Silver Project Global Inferred Resource estimate of 720,000 tonnes at 200g/t silver (6.4 ounces per tonne silver) for 4.6 million ounces of silver, using a 70g/t silver cut-off.
- Webbs Silver South Prospect Inferred Resource (which is part of the Global estimate above) of 520,000 tonnes at 230g/t silver (7.4 ounces per tonne silver) for 3.8 million ounces of silver,
using a 70g/t silver cut-off. - Copper, Lead, Zinc and Antimony provided over 40% of ‘value’ in resource
- Six high priority drill targets remain untested, planned to be drilled in mid 2010
Metallurgical test-work was also begun with detailed mineragraphy started in mid-2009. The programs have been designed to provide a detailed understanding of the flow sheet required to produce one or more metal rich concentrates. This work is planned to be completed in early 2010.
ELS 6239 AND 6772 (100% SVL)
These two tenements contain two groups of known deposits – the westerly Webbs Consols group, and the eastern Tangoa- Wellingrove group. The Webbs Consols group, embracing (south to north) the Castlereagh, Mount Galena, Webbs Consols and Lucky Lucy workings, is considered to comprise discrete, pipe-like shoots whose plunge is probably controlled by easterly or north-easterly cross-cutting features. Exploration to date suggests that high-grade silver mineralisation may extend along strike of the known historical workings with results awaited from recent geochemical programs. A review of previous exploration and available data has identified two new conceptual Pb-Zn-Ag exploration targets at the Wellingrove-Tangoa prospect named Tangoa South and Tangoa Southwest.
Although initially thought by CRA to be series of stratabound volcano massive sulphide (‘VMS’) deposits hosted in subaqueous volcanics, subsequent work conclusively proves that the Wellingrove-Tangoa line-of-lode in addition to the Webbs Consols deposits and the Tangoa West prospect are all of epigenetic, fault-hosted, hydrothermal origin, post-dating subaerial volcanism, faulting and intrusion of the Webbs.
Consols pluton and associated felsic porphyry dykes. SVL plans to undertake follow-up surface work including mapping, geochemistry and geophysics on the two new targets identified in early 2010.
TENTERFIELD AREA, NSW
MOLE RIVER PROJECTS – ELS 6512, 6114 AND 6771 (100% SVL)
SVL halted exploration on its three 100% owned exploration licences in the Mole River district, west of Tenterfield, in northern NSW: EL’s6114, 6512 and 6771. Work programs were halted during the year to conserve cash with ground geophysics and drilling planned for the 2009 financial year on 4 high priority targets.
A strong regional lineation or jointing strikes NNE, and high grade polymetallic vein mineralisation parallels the regional structural trend in a number of areas (e.g. the Avenue, Mosman, Spring Road) and thus cuts across the NW trend of the lithologies. This dominant NNE-trending polymetallic vein mineralisation is considered to be related to the intrusion of the Mole Granite. A second style of mineralisation features stockwork and/or sheeted veins developed within interpreted possible fault splays, developed subsidiary to regionally extensive ENE-WSW trending shears; possible examples of this
style are Bondonga and Spring Road.
Follow-up field work was completed in early 2009 with a number of prospects returning encouraging geochemical and geological indicators coincident with supporting aerial geophysical signatures. Silver results in both rock chip and soil geochemistry at specific areas, in particular the Heffernan’s, Torny, Spring Road and Mosman prospects provide impetus to these areas forward to more detailed work with ground based geophysics and drilling warranted. The prospects have returned a number of samples exceeding 200ppm Ag with coincident highly anomalous values of zinc, lead and copper. These metal associations demonstrate that polymetallic mineralisation is evident at a number of prospects supporting the Company’s targeting and exploration model for the area. Broader zones, up to 500m in diameter, of anomalous silver and base metal mineralisation provide support for possible discovery of larger tonnage low grade deposits.
BOOROWA, NSW
EL6269 AOM/SVL JOINT VENTURE WALLAH WALLAH AG-PB-ZN MINE
Silver Mines Limited and Australia Oriental Minerals NL (ASX:AOM) have entered into a Joint Venture (JV) agreement on AOM’s 100% owned EL6269 in south-central NSW near Boorowa. The terms of the JV are that SVL can earn a 50% interest in EL6269 by spending $95,000. SVL has already expended approximately $60,000.
SVL considers the prospect to have good potential for hosting high grade silver and base metal rich mineralisation and will complete ground geophysics (induced polarisation and transient electro-magnetics) in the coming months to ascertain the potential for both vertical and lateral extensions of the
known mineralisation. The surrounding areas within the tenement also contain a number of historic workings which require mapping and sampling. SVL completed a follow-up ground based geophysical survey in August 2009 which extended the anomaly to depth. Drilling is planned to test the anomaly in mid-2010.
Geographical Spread
Board of Directors and Key Management
| David Henry Sutton | Executive Chairman |
| David John Straw | Non-Executive Director |
| Malcolm Harvey Bird | Non-Executive Director |
| Kevin Martin Lynn | Company Secretary |
| Charles David Straw | Chief Executive Officer |
Company AddressSuite 201, 109 Alexander Street
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Capital66305142 Fully Paid Ordinary Shares
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Annual General MeetingNovember, Sydney, Australia | Year End30 June |
Major Shareholders
| Shareholder | # of Shares | % |
| MORNING STAR GOLD NL | 3,000,000 | 4.525 |
| CENTRAL WEST GOLD NL | 2,193,122 | 3.308 |
| MR MICHAEL LIM | 2,100,000 | 3.167 |
| PRIME SECURITIES INVESTMENT GROUP PTY LTD | 1,800,000 | 2.715 |
| WALPETT ENGINEERING PTY LTD |
Related News
25/02/10 - Silver Mines Limited Is Increasingly Standing Out From The Crowd As The Only Australian-Listed Silver-Focussed Junior16/06/09 - Silver Mines Looks To Join The Dots At Its Webbs Silver Prospect In New South Wales
08/07/08 - Silver Mines Takes A Dual Listing On Plus To Put Its Promising Australian Projects Under The Microscope At Both Ends Of The World
07/07/08 - PLUS Moves Closer To Level Pegging With Aim As The Market Of Choice In London, And It’s A Lot Cheaper
Most Recent Statement
10/02/10 - Webbs Silver Potential Grows29/01/10 - Quarterly Activities Report
29/01/10 - Quarterly Cashflow Report
23/12/09 - Drilling Results Extend Mineralisation at Webbs.
11/12/09 - Placement
09/12/09 - Final Director`s Interest Notice