Silver Mines Limited announced an update on exploration drilling activities and recent assay results from the Bowdens Silver Project located near Mudgee in New South Wales. Following the release of a maiden underground Mineral Resource, exploration has shifted to testing extensions of mineralisation outside the current planned open-cut pit design and testing for higher grades within the open-cut pit design. Multiple areas have been targeted for extensions including in the north at Main, Aegean and Northwest Zones and in and to the south of the planned open-cut pit where anomalous gold has been identified.

This release outlines significant assay results received from continued diamond drilling around the Bowdens Silver Deposit and from a re-assay program of historic drill pulp samples for gold. Southern Gold Zone: The maiden underground Mineral Resource estimate at Bowdens Silver, for the first time at the project, included gold. Gold has been predominantly identified (previously) within the Bundarra Zone which is directly underneath the planned open-cut pit.

Gold was also discovered in 2021 at shallow depths in the south and adjoining the Bowdens Silver Deposit, along with high grades of silver mineralisation. This area has become an additional target for gold and silver exploration drilling during 2022 and is named the Southern Gold Zone. Results have been received from diamond drillholes BD22042 and BD22024, which were drilled along strike of BD22029 north (180m) and south (55m) respectively.

BD22029 has returned the highest and widest grade gold interval to date at the Bowdens Silver Project of 32.6 metres @ 2.09g/t gold equivalent. 3 Both holes encountered fractured and veined Rylstone Volcanics with the highest-grade gold occurring near the base of the volcanics associated with silica-sericite-carbonate alteration and stringer veins of pyrite (iron sulphide)- sphalerite (zinc sulphide)- electrum (silver & gold alloy). Results include: BD22042: 99 metres @ 1.15g/t gold equivalent 4 (0.62g/t gold, 10g/t silver, 0.35% lead and 0.39% zinc) from 159 metres, including; 27 metres @ 3.13g/t gold equivalent (1.95g/t gold, 24g/t silver, 0.80% lead and 0.83% zinc) from 167 metres; and BD22024: 82.7 metres @ 0.89g/t gold equivalent (0.25g/t gold, 44g/t silver and 0.10% zinc) from 8 metres; including 8 metres @ 2.5g/t gold equivalent (0.28g/t gold, 166g/t silver, 0.14% zinc and 0.08% lead) from 34 metres, and 5.1 metres @ 3.0g/t gold equivalent (1.5g/t gold, 70g/t silver, 0.80% zinc and 0.26% lead) from 81 metres.

Historic drill samples taken by previous operators in this area have had limited assaying for gold and the Company is now systematically re-submitting historical pulps for gold assays. Results from the first batch of samples have been received and are defining a zone of consistent width including higher grades. Importantly, most of the historic holes reassayed are shallow vertical RC holes, with recent diamond drilling showing gold mineralisation extends beyond the depths of the RC drilling.

Significant intercepts, using a 0.2g/t gold cut off include: BRC12095: 29 metres @ 0.42g/t gold from 53 metres, 15 metres @ 0.52g/t gold from 33 metres, BRC12093: 17 metres @ 0.48g/t gold from 66 metres, BRC12050: 14 metres @ 0.53g/t gold from 110 metres, BRC12092: 9 metres @ 0.81g/t gold from 93 metres, BRC12064: 7 metres @ 1.03g/t gold from 74 metres. The Southern Gold Zone is currently defined at 300 metres in strike and 200 metres width and between 15 to 85 metres in thickness. The zone is from near surface in the south of Bowdens and is outside the currently planned open-cut pit.

The Southern Gold Zone will be assessed in future pit optimisation studies. Gold is associated with an increase in silver, zinc and sulphur particularly across the volcanics and basement contact where thicker pyrite (iron sulphide) and sphalerite (zinc sulphide) rich stockwork veins are observed. Research studies have shown that gold is associated with a silver-rich electrum (a naturally occurring alloy of gold and silver).

This is of epithermal origin at Bowdens. The Company is awaiting further assays from diamond drill holes situated a further 150 metres to the north of BD22042. Stage two of the gold assay program on historic holes will include another 3,300 metres of holes within, and outside this zone as well.

Bowdens Silver Pit and Extensional Drilling: Drilling has focused on adding greater tonnages of higher-grade mineralisation within the current Ore Reserve and to explore for extensions to mineralisation outside of the planned open-cut pit, refer to Figure 1. Several holes within the central eastern area of the planned open-cut pit have returned significant results including: BD22014: 96 metres @ 63g/t silver equivalent (23g/t silver, 0.39% zinc and 0.57% lead) from 1 metre, and BD22017: 47.8 metres @ 95g/t silver equivalent (34g/t silver, 0.53% zinc and 0.91% lead) from 1 metre, and BD22021: 71 metres @ 59g/t silver equivalent (27g/t silver, 0.36% zinc and 0.40% lead) from 11 metres. Results from holes drilled to the southwest of Bowdens testing for extensions around the southern planned open-cut pits have returned significant intercepts including: BD22026: 20 metres @ 73g/t silver equivalent (71g/t silver & 0.05% lead) from 2 metres, and 40 metres @ 34g/t silver equivalent (12g/t silver and 0.42% zinc) from 90 metres, and BD22031: 30 metres @ 42g/t silver equivalent (28g/t silver and 0.25% zinc) from 49 metres, and BD22030: 24 metres @ 52g/t silver equivalent (37g/t silver and 0.24% zinc) from 40 metres.