Silver Mines Ltd (ASX:SVL, OTC:SLVMF) has boosted its exploration portfolio through the acquisition of two historic silver and gold assets in California — the Calico North and Kramer Hills projects in San Bernardino County, an area renowned for its rich mineral endowment.
Silver Mines has committed to acquiring 100% of the Calico North Project and up to an 80% interest in the Kramer Hills Project. Both assets boast historical production and considerable exploration potential, and Silver Mines aims to leverage modern techniques to unlock new resources.
The total up-front consideration for the acquisitions includes US$1.1 million in cash and 62.5 million Silver Mines shares. The deal is structured to minimise cash outlay, with the majority of consideration in shares, followed by milestone payments and future exploration commitments.
Initial exploration work is slated to begin in the second half of 2025, with geophysics and mapping activities to precede drilling plans in 2026.
High-potential Calico North Project
The Calico North Project lies in the prolific Calico Silver District, one of the largest silver camps in the United States. This district has produced more than 20 million ounces of silver historically, and the Calico North Project contains significant untapped mineralisation.
California and San Bernadino County Location Map.
The project area covers 40 kilometres of prospective strike length and hosts high-grade silver mineralisation, with historical assay results revealing impressive grades of up to 38,000 grams per tonne (g/t) silver. The mineralisation is interpreted to be low-sulphidation epithermal, a key type of deposit often associated with high-value silver production.
Despite its rich history, the Calico North Project remains largely unexplored, and Silver Mines intends to apply modern exploration methods to unlock additional value. The project is located near several other large-scale operations, including the Castle Mountain Mine and the Golden Queen Mine, adding to its strategic value.
Kramer Hills Project: A promising gold exploration play
The Kramer Hills Project, located near the historic Shaherald Mine, is an oxide gold project with considerable upside. The site includes patented claims and US Bureau of Land Management claims, with a 2.5-kilometre strike length of mineralised zones, many of which have not been adequately explored.
Satellite Imagery of Historic Kramer Hills Open Pit, looking south east.
Historical drilling results at Kramer Hills have returned promising gold intercections, such as 21.3 metres at 7.9 g/t Au, suggesting significant potential for further resource expansion.
Silver Mines has identified an initial oxide exploration target at Kramer Hills, which estimates a range of 160,000 to 445,000 contained ounces of gold, depending on the target scenario. The project’s historical exploration data provides a solid foundation for future drilling programs aimed at confirming and expanding these initial targets.
Strategic expansion complements Bowdens Silver
Silver Mines managing director Jo Battershill emphasised that the acquisitions augment the company’s exploration strategy without diverting focus from its flagship Bowdens Silver Project in New South Wales.
“The company has been mindful of augmenting Silver Mines’ exploration optionality, and these transactions are the result of an extensive global silver project survey we have conducted in recent months,” Battershill said.
“These projects provide Silver Mines with a substantial foothold in a highly endowed region and fit perfectly with our preference for brownfields targets with high potential, in safe jurisdictions and with minimal balance sheet impact,” he added. “They offer substantial upside to shareholders through the discovery and definition of a potential development pipeline and offer geographical diversification.”