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Silver Mines (ASX:SVL) - Managing Director, Anthony McClure
Managing Director, Anthony McClure
Source: Finance News Network
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  • Silver Mines (SVL) has been granted three new exploration licenses at the Tuena Gold Project, subsequently quadrupling its size
  • The new tenements take SVL’s holdings to 747 square kilometres, which is located on the Godolphin-Copperhania-Structural Zone that hosts the multi-million-ounce McPhillamys Gold Project in New South Wales
  • The company has also identified two new target areas, which it claims could hold both gold and base metal signatures
  • Silver Mines is planning to expand exploration activities, including drilling, in the third quarter of 2020 subject to approvals and COVID-19 restrictions
  • Company shares are trading 4.1 per cent lower today, selling for 11.5 cents each

Metals mining outfit, Silver Mines (SVL), has quadrupled its holdings after being granted three new exploration licences at its Tuena Gold Project.

The new tenements has increased the company’s project size by 569 square kilometres to 747 square kilometres.

The Tuena project, located 80 kilometres south of the New South Wales city of Orange, sits on the Godolphin-Copperhania-Structural Zone that hosts the multi-million-ounce McPhillamys Gold Project.

It consists of an extensive series of historic hard-rock and alluvial gold mines which operated from the 1850s until the early 1900s.

The company claims there are potentially two interrelated deposit target styles present at Tuena. This includes historic mining activity which focused on very high-grade gold-bearing lodes and veins, as well as the potential for gold and base-metal volcanogenic massive sulphide (VMS) deposits.

New tenements

The Lucky Hit South Target adjoins the existing Lucky Hit historic workings and extends for approximately 2.6 kilometres to the south. At the Golden Dyke to Lucky Hit zone, the company has already identified an eight parts per billion (ppb) gold in soil anomaly over a 1.4-kilometre strike length.

The company said at Lucky Hit South, a 2600-metre by 600-metre multi-element anomaly in soil data consists of anomalous silver averaging 85ppb. In addition, a rock-chip sample from the area yielded 2.7 grams per tonne of gold.

The Markham’s Target adjoins to the east of the Markham’s historic workings and extends over a 1600-metre by 400-metre zone. The Markham’s prospect is also located less than a kilometre to the northeast of the Cooper & McKenzie historic workings, where recent work by the Silver Mines identified a 850-metre by 200-metre soil anomaly, which carried 25ppb of gold in with individual results up to 1550ppb of gold.

Next Steps

Silver Mines intends to drill test at least four targets, with the timing of the program subject to land-access, permitting and restrictions implemented as a result of the COVID-19 pandemic. A rough timeline for initial drilling at Tuena has been pencilled in for the third quarter of 2020.

Company shares are trading 4.1 per cent lower today, selling for 11.5 cents each at 1:30 pm AEST.

SVL by the numbers
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