Silver Mines Limited June 2026 Quarterly Activities Report

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# Silver Mines Limited June 2026 Quarterly Activities Report

Source: https://www.silvermines.com.au/wp-content/uploads/2026/09/07285883l33460.pdf
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# Silver Mines Limited June 2026 Quarterly Activities Report
Source: https://www.silvermines.com.au/wp-content/uploads/2026/09/07285883l33460.pdf
Published: 2026-07-31
Level 28, 88 Phillip St
Sydney NSW 2000
P: +61 2 8316 3997
F: +61 2 8316 3999
Info@silvermines.com.au
www.silvermines.com.au
31 July 2026
ACTIVITIES REPORT FOR THE QUARTER ENDED
30 June 2026 (
Quarter
HIGHLIGHTS
Definitive Feasibility Study, Life of Mine Plan, Ore Reserves and Mineral Resource
Estimate
Subsequent to the Quarter, the Company announced a DFS which positions the
Bowdens Silver Project (
) as one of the world's premier undeveloped silver
projects. Silver Ore Reserves have been increased to 47.9Mt at 60.8 g/t Ag for
For personal use only
93.5Moz with 91% of the Project revenue expected to be derived from silver.1
The initial stage 1 of the proposed development will focus on a subset of the Life
of Mine (LOM) plan containing 29.9Mt at 68 g/t Ag for 65.4Moz, over a 16-year
period with a low strip ratio of 1.47:1.0 (waste:ore).1
A second stage supported by pre-feasibility study level works, subject to
approvals, is expected to ultimately result in mining and processing of the
remaining 18.3Mt for a total mine operational life of 26 years with a LOM strip ratio
of 1.69:1.0.1
Subsequent to the Quarter, the Company also announced an updated Mineral
Resource Estimate (
) and updated Ore Reserves.1
Ore Reserves total 47.9 million tonnes at 60.8 g/t silver, 0.36% zinc and 0.26% lead
for an increase of 46% to the ore tonnes relative to the 2024 Ore Reserve estimate
with an A$30 per tonne NSR cut off.1
The contained silver in Ore Reserves has increased by 30% to 93.5 million ounces
and silver is now forecast to contribute around 91% of the revenue in the mine
plan, up from 85% in the 2024 Ore Reserves estimate.1
The 2026 MRE above 25g/t AgEq2 cut-off grade reflects additional drilling
(including a further 2,248 assays from 2,265m drilled), updated geological
domains, improved metallurgy and changes to metal pricing assumptions.
Bowdens Silver Project, New South Wales
The Company continues to pursue the redetermination of the BSP through the
NSW Department of Planning Housing and Infrastructure (
) planning
approvals system.
The Company has submitted an updated Biodiversity Development Assessment
Report for the Bowdens Project along with an associated response to DPHI
relating to Requests for Information. It is now anticipated that DPHI will assess
the submission material enabling it to provide an updated assessment report to
1
Silver Mines Limited (ASX:SVL) release:
Bowdens Definitive Feasibility Study Confirms Robust Economics as Reserves Lift to 93.5Moz of
Silver
dated 21 July 2026.
2
Refer Notes on Resource Table 4 for AgEq calculations.
Silver Mines Limited
ABN: 45 107 452 942 Page 1
the Independent Planning Commission of NSW for consideration and subsequent
DA redetermination.
The Company also announced the acquisition of strategic parcel of land adjacent
to its Bowdens Silver Project and associated water entitlements.
The acquisition provides the Company with numerous benefits including
enhanced project water security, additional biodiversity enhancement
opportunities, together with potential employee housing and infrastructure
development options.
Calico North Project and Kramer Hills Farm-In
The Company announced that a rock chip and field mapping program at Calico
North was completed.
For personal use only
Of 219 rock chips, 41 contained more than 50 g/t Ag and 21 more than 100 g/t Ag,
including samples 339705, 339725 & 339847 returning assays of 1,960 g/t Ag, 435
g/t Ag & 340 g/t Ag, respectively.3
Silver and barite, Critical Minerals in the US, were confirmed by the mapping and
rock chip sampling program with best barite assays including samples 339702,
339749, 339652 returning assays of over 44.8% Ba (over detection limit), 44.3% Ba
& 41.8% Ba respectively.3
Phase one drill planning is underway for both projects.
Corporate
$7.98 million was raised via the exercise of outstanding unlisted options.
Bowdens Silver Project DFS, Ore Reserves and MRE
On 21 July 2026, Silver Mines Limited (
Silver Mines or
the Company
) announced a
Definitive Feasibility Study (
) for the Bowdens Silver Project (
Project
). The
Company also announced an updated Mineral Resource Estimate (
2026 MRE
) and Ore
Reserve Estimate (
2026 Reserves
) for the BSP.
DFS and LOM Summary
The DFS for the BSP has resulted in significant improvements to the economic parameters of
the Project.
The Bowdens Ore Reserve Estimate will require a staged development.
The DFS for the BSP specifically references a 29.9Mt ore mine design, which is less than the
2026 Life of Mine Design (
) design which contains 48.2Mt ore. The DFS mine design
only includes Stage 1 and has been intentionally limited in scale to match the Stage 1 tailings
landform which has been designed to hold 30Mt of filtered tailings. Stage 2 (which includes
the additional 18.3Mt for the total 48.2Mt 2026 LOM Plan) requires a Stage 2 filtered tailings
landform, all other mine infrastructure is the same as the DFS. The design of the Stage 2
filtered tailings landform is at pre-feasibility study level only. All other aspects of the 2026 LOM
design are at DFS level. As a result, while the combined LOM financial metrics (Tables 1 and
3
Silver Mines Limited (ASX:SVL) release
Exploration Update on Californian Silver & Gold Assets
dated 16 April 2026.
Silver Mines Limited
ABN: 45 107 452 942 Page 2
2, "LOM Stage 1 and 2 Development" columns) reflect the full 26-year mine plan, investors
should note that the Stage 2 component carries a higher level of uncertainty consistent with
its pre-feasibility study status.
The updated studies for the BSP have demonstrated strong economics and significant
improvements to the Optimisation Study (
2024 Study
) from December 2024.4
The key economics of the BSP from the DFS and 2026 LOM are set out in Table 1 below:
Table 1: Bowdens Silver Project Economic Parameters
Parameter Unit 2024 Study DFS LOM Difference Difference
(Dec 2024) Stage 1 Stage 1 and 2 (DFS vs 2024 (LOM vs 2024
Development Developments Study) Study)
(Jul 2026) (Jul 2026) Stage 1 Stage 1 and 2
For personal use only
Development Developments
Processing Plant, Infrastructure and Sustaining Capital
Process Plant (2.0Mtpa) A$m 93.8 180.5 180.5 +92% +92%
Non-Processing Infrastructure A$m 122.1 113.3 113.3 -7% -7%
Other A$m 78.6 107.8 107.8 +37% +37%
Indirect A$m 37.1 52.9 52.9 +42% +42%
Total (including contingency) A$m 332 455 455 +37% +37%
Sustaining Capital (LOM) A$m 14.8 23.5 90.8 +52% +513%
LOM Capex A$m 346 478 545 +38% +58%
Production Summary
Life of Mine (LOM) Years 16.0 16.75 26.0 +0.75 years +9.25 years
LOM Strip Ratio W:O 1.49 1.47 1.69 -1% +13%
Processing Rate Mtpa 2.0 2.0 2.0 n/c n/c
LOM Payable Silver Production Moz 50.3 51.1 73.2 +2% +46%
LOM Payable Zinc Production Kt 31 27 46 -13% +48%
LOM Payable Lead Production kt 56 49 84 -13% +50%
LOM Average Silver Production Mozpa 3.7 3.8 3.2 +3% -14%
LOM Average Silver Recovery % 82.7 82.8 82.1 +1% -1%
LOM Operating Costs
4
Silver Mines Limited (ASX:SVL) release:
Optimisation Study Highlights Robust High-Margin Ag Project
dated 20 December 2024.
Silver Mines Limited
ABN: 45 107 452 942 Page 3
Parameter Unit 2024 Study DFS LOM Difference Difference
(Dec 2024) Stage 1 Stage 1 and 2 (DFS vs 2024 (LOM vs 2024
Development Developments Study) Study)
(Jul 2026) (Jul 2026) Stage 1 Stage 1 and 2
Development Developments
Mining (including rehabilitation) A$/t 17.99 19.85 20.37 +10% +13%
milled
Processing A$/t 20.78 20.73 20.71 0% 0%
milled
Administrative A$/t 5.65 6.02 6.01 +7% +6%
milled
For personal use only
C1 Costs A$/oz 23.28 26.91 29.75 +16% +28%
C1 Costs US$/oz 15.59 18.84 20.82 +21% +34%
AISC A$/oz 24.81 29.32 32.91 +18% +33%
AISC US$/oz 16.62 20.53 23.04 +24% +39%
Project Economics
LOM Pre-Tax Operating Margin A$m 948 1,812 2,390 +91% +152%
NPV5% (Pre-Tax) A$m 359 877 1,043 +144% +191%
NPV5% (Post-Tax) A$m 253 626 736 +147% +191%
IRR (Pre-Tax) % 21.0 31.5 31.5 +50% +50%
Payback (Post-Tax) Years 3.9 3.0 3.0 -23% -23%
Profitability Index (x) 1.76 2.40 2.64 +36% +50%
NPV (Pre-Tax) / Pre-Prod Capex (x) 1.08 1.93 2.30 +78% +113%
n/c = no change.
A number of scoping changes relative to the 2024 Study were made during the DFS. The key
changes include:
Process flow sheet updated to minimise overgrinding of soft material. Changes include:
o Addition of secondary crusher;
o Inclusion of fine ore screening after the SAG mill to divert final size material directly
to the flotation cells; and
o Ability to by-pass fine ore screening when not needed.
Tailings filtration methodology changed from a two-step process to a single step
process. Optimisation plan included a desliming step with different dewatering methods
for the fines and coarse product. DFS plan is to pressure filter the entire tails stream in
a single step.
Silver Mines Limited
ABN: 45 107 452 942 Page 4
The financial model developed for the Project based on the 2026 LOM plan indicates a total
operating margin of A$2.39 billion, with project payback 3.0 years from the commencement of
production. Project Pre-Tax NPV5 is estimated at A$1.04 billion, with an IRR of 31.5%. Project
Post-Tax NPV5 is estimated at $736 million, with an IRR of 26%.
Table 2: Bowdens Silver Project Economics
Project Economics
Parameter Unit 2024 Study DFS LOM Difference Difference
(Dec 2024) Stage 1 Stage 1 and 2 (DFS vs 2024 (LOM vs 2024
Development Developments Study) Study)
(Jul 2026) (Jul 2026) Stage 1 Stage 1 and 2
Development Developments
For personal use only
Revenue A$m 2,510 3,538 5,175 +41% +106%
Operating Expenses A$m 1,562 1,726 2,785 +10% +78%
Operating Margin A$m 948 1,812 2,390 +91% +152%
Undiscounted Cash Flow Pre-Tax A$m 631 1,434 1,945 +127% +208%
Undiscounted Cash Flow Post-Tax A$m 469 1,056 1,412 +125% +201%
NPV5% (Pre-Tax) A$m 359 877 1,043 +144% +190%
NPV5% (Post-Tax) A$m 253 626 736 +147% +191%
IRR (Pre-Tax) % 21 31.5 31.5 +50% +50%
IRR (Post-Tax) % 18 26 26 +44% +44%
Payback (Post-Tax) Years 3.9 3.0 3.0 -23% -23%
Profitability Index (x) 1.76 2.40 2.64 +36% +50%
NPV (Pre-Tax) / Pre-Prod Capex (x) 1.08 1.93 2.30 +78% +113%
In terms of product value, under the 2026 LOM plan, the combination of silver and zinc, both
of which are included on the NSW Critical Minerals and High-Tech Metals list, account for
approximately 95% of revenue from the Bowdens Silver Project. Silver alone contributes more
than 91% of revenue from the 2026 LOM plan, making the Bowdens Silver Project one of the
most leveraged silver development projects in the world.
Please refer to the Company
s announcement dated 21 July 2026 for full details regarding the
DFS.
Ore Reserve
The Company, in conjunction with Resolve Mining Solutions, produced a 2026 Reserve for
the BSP based on the M & I component of the 2026 MRE, refer to Table 3 and Figure 1. This
represents a snapshot of the current economically extractable Resources for a given set of
cost and pricing assumptions and modifying factors in accordance with the JORC Code.
Silver Mines Limited
ABN: 45 107 452 942 Page 5
The Bowdens Silver Ore Reserve is estimated at 47.9 million tonnes at 60.8 g/t silver, 0.36%
zinc and 0.26% lead for 93.5 million ounces of silver, 172 kilo-tonnes of zinc and 127 kilo-
tonnes of lead in contained metal.
Table 3: July 2026 Ore Reserve*
Reserve Grades Contained Metal
Tonnes
Classification Ag (g/t) Zn (%) Pb (%) Ag (Moz) Zn (kt) Pb (kt)
(Mt)
Proven 44.6 61.7 0.37 0.27 88.5 165 122
Probable 3.3 47.3 0.21 0.15 4.9 7 5
Total 47.9 60.8 0.36 0.26 93.5 172 127
*Notes:
1. Ore Reserves are a subset of Mineral Resources.
2. Ore Reserves confor

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