Silver Mines (ASX: SVL) Unveils 26-Year Bowdens Plan as Silver Reserves Climb 30% to 93.5 Million Ounces

Silver Mines (ASX: SVL) has taken a major step towards developing one of Australia’s largest undeveloped silver projects, releasing a Definitive Feasibility Study (DFS) that expands reserves, extends mine life and significantly improves the project’s economic outlook.

The updated study for the company’s wholly owned Bowdens Silver Project in central New South Wales outlines a staged 26-year mining operation and increases ore reserves by 30% to 93.5 million ounces of contained silver. Ore tonnage also rose 46% to 47.9 million tonnes, reinforcing Bowdens’ position as one of the world’s largest undeveloped primary silver deposits.

The study estimates a pre-tax Net Present Value of A$1.04 billion using a base silver price of US$45 an ounce, while the project is expected to generate gross life-of-mine revenue of A$5.18 billion and a pre-tax operating margin of A$2.39 billion. The projected pre-tax Internal Rate of Return improved to 31.5%, with capital payback expected within three years.

Rather than developing the entire resource at once, Silver Mines has adopted a staged approach. The first phase will process 29.9 million tonnes of ore over approximately 16 years, producing 65.4 million ounces of silver. A second expansion stage would extend operations by a further 9.25 years, lifting total mine life to 26 years.

The revised plan also increases Bowdens’ exposure to silver prices. Silver is now forecast to account for 91% of project revenue, up from 85% in the previous 2024 study, while silver and zinc together are expected to contribute 95% of total revenue. Both metals are listed as critical minerals by the New South Wales Government.

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The update arrives as silver continues attracting renewed attention globally. Alongside its traditional role in jewellery and investment, silver has become increasingly important in solar panels, electronics, electric vehicles and advanced manufacturing. According to the Silver Institute, industrial demand has become one of the fastest-growing drivers of global silver consumption, contributing to a tightening long-term supply outlook.

The feasibility study also incorporates several engineering improvements, including a redesigned grinding circuit aimed at improving processing efficiency and a single-step pressure filtration system for dry-stacked tailings, replacing the two-stage dewatering process proposed in the earlier study.

Those improvements, however, come with higher upfront costs. Pre-production capital expenditure has increased to an estimated A$455 million, reflecting inflation across the mining industry as well as expanded project scope. Even so, the project’s economics remain stronger than those outlined in the 2024 study due to larger reserves, higher assumed silver prices and improved operating performance.

Managing Director Jo Battershill described completion of the DFS as a defining milestone for the company.

“The completion of the Bowdens DFS is a significant milestone for the Company and its shareholders. The Board of Silver Mines would like to extend its appreciation to both the shareholder base for its ongoing patience, and the site team for completing this extensive package of works while facing significant distractions related to the approval process.

“With the Project’s consent now in the hands of the NSW Government and Independent Planning Commission, it is important to focus on the economic benefits that the BSP can bring to the community and investors alike. With the regional coal industry under pressure from decarbonisation of the economy, the benefits of this project to the local community are increasingly important.

“With a potential mine life now anticipated to be more than 25 years, the BSP is expected to deliver generational employment opportunities for more than 200 locals at steady state operations, hand-in-hand with strong financial returns to the state government from taxes and royalties, the local council through the voluntary planning agreement and investors alike.

“We very much look forward to progressing the BSP through into the FEED process and subsequent development.”

The company’s immediate priority is securing development consent from the New South Wales Government and the Independent Planning Commission before progressing to federal environmental approvals and front-end engineering design.

Shares in Silver Mines rose 4% to A$0.130 following the release, giving the company a market capitalisation of approximately A$289 million. While the project still requires regulatory approvals and funding before construction can begin, the latest study substantially strengthens Bowdens’ technical and economic credentials at a time when long-term demand for silver continues to broaden beyond traditional precious metals markets.

Sources: Silver Mines Definitive Feasibility Study (21 July 2026); The Silver Institute World Silver Survey; NSW Government Critical Minerals Strategy.