Australian white metal hunter up 11% after buying Bowdens
Australian silver explorer Silver Mines (ASX:SVL) is now all-in as it seeks to develop the continent's largest undeveloped silver deposit- the Bowdens Silver Project.
The Sydney-based company completed the final $4 million payment on Bowdens, thus buying out Kingsgate Consolidated (ASX:KCN) for full ownership of the deposit located in central New South Wales, near Mudgee.
Kingsgate Consolidated is the same company that owns the Chatree gold mine, Thailand's only producing gold operation, which is scheduled to close by year-end.
Making the final payment of the $25 million purchase price appealed to stockholders, who bid up the stock price 11.76% Thursday, to $0.18 a share.
According to Silver Mines, Bowdens is the highest-grade, undeveloped silver project in Australia, with measured and indicated resources of 8.4 million ounces graded at 269 grams per tonne silver.
"The recently consolidated Project area comprises 1,654 square kilometres (408,000 acres) of titles covering approximately 80 kilometres of strike of the highly mineralised Rylstone Volcanics," Silver Mines describes on a project page.
Drill results received earlier this month include 24 metres at 85 g/t silver, 0.19% zinc and 0.20% lead (95 g/t silver equivalent) from 118 metres.