Silver Mines Ltd (ASX:SVL) has raised $2.75 million in a share placement to sophisticated and professional investors priced at 4 cents.
The company’s Bowdens Silver Project hosts one of the largest undeveloped silver deposits globally.
The resource stands at 128 million tonnes grading 67 g/t silver equivalent for 275 million ounces of silver equivalent.
A resource upgrade in September 2017 increased the total resource by 51%.
Mineral system shows signs of growth potential
Bowdens is one of the largest undeveloped precious metals deposits in Australia and one of the largest new silver developments globally.
The deposit is a silver-rich system but has geological affinities to gold and copper-rich deposits such as Mt Leyshon and Mt Carlton.
Silver Mines’ exploration strategy involves extending the current deposit and developing targets at depth.
Deposit has near-surface high-grade silver
Notably, the deposit features high-grade mineralisation that is near-surface.
This is important as a mine plan can initially focus on this area to generate early cash flow for the project.
Because of this, the company plans to fast-track through feasibility studies to project development.
The feasibility study in progress is expected to be complete later this month.