Silver Mines' Bowdens Project Aims for Multi-Billion Dollar Revenue
Silver Mines Limited (ASX:SVL) has completed and released its Definitive Feasibility Study for the Bowdens Silver Project, a large undeveloped silver deposit in New South Wales. The study estimates that the project's pre-tax net present value (NPV) is around A$1.04 billion, with a pre-tax internal rate of return (IRR) of 31.5% at a US$45/oz silver price.
The project's ore reserves have increased to 47.9 million tonnes at 60.8g/t silver for 93.5 million ounces of contained silver, a 30% increase in silver ounces and a 46% increase in tonnes over the prior estimate. This supports a staged, 26-year operational life.
The study projects capital payback within about three years and life-of-mine revenue near A$5.18 billion. However, the project's economics are highly leveraged to the silver price, and actual costs and approvals may differ from study estimates.