Silver Mines Ltd Expands Exploration Portfolio with California Acquisition

Strategic Insights -

Silver Mines Ltd has made a significant expansion to its exploration portfolio by acquiring two historic silver and gold assets in California's San Bernardino County. The Calico North and Kramer Hills projects boast historical production and considerable exploration potential, with Silver Mines poised 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 company has committed to acquiring 100% of the Calico North Project and up to an 80% interest in the Kramer Hills Project.

Key Takeaways:

  • The Calico North Project covers 40 kilometres of prospective strike length and hosts high-grade silver mineralisation, with historical assay results revealing 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.
  • The Kramer Hills Project, an oxide gold project, 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.
  • 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 acquisitions augment Silver Mines' exploration strategy without diverting focus from its flagship Bowdens Silver Project in New South Wales.
  • The company's managing director, Jo Battershill, emphasized that the acquisitions fit perfectly with Silver Mines' preference for brownfields targets with high potential, in safe jurisdictions and with minimal balance sheet impact.

Statistics:

  • US$1.1 million in cash and 62.5 million Silver Mines shares are part of the total up-front consideration for the acquisitions.
  • The Calico North Project covers 40 kilometres of prospective strike length.
  • Historical assay results at Calico North have revealed grades of up to 38,000 grams per tonne (g/t) silver.
  • The Kramer Hills Project includes patented claims and US Bureau of Land Management claims, with a 2.5-kilometre strike length of mineralised zones.
  • Historical drilling results at Kramer Hills have returned intercections of up to 21.3 metres at 7.9 g/t Au.

Sources:

  • Silver Mines Ltd (ASX:SVL, OTC:SLVMF)
  • Source: Silver Mines Ltd, "Silver Mines Expands Exploration Portfolio with California Acquisition"