Silver Mines (ASX: SVL) is providing the market with a constant flow of outstanding intersections from the Webbs Silver project in New South Wales, which is one of Australia's largest undeveloped silver projects.
Highlighting the potential, the resource currently stands at 1.49 million tonnes at 245 grams per tonne (g/t) silver for 11.746 million ounces, or around eight ounces of silver per tonne - but it's the confidence categories which are the key.
The Measured and Indicated component is 969,000 tonnes at 269g/t silver for 8.4 million ounces - or 71% of the total resource.
The latest drilling highlights are not included in the resource, providing the potential for a near term upgrade.
Diamond drill infill holes delivered;
- 7.80 metres at 464g/t silver, 0.78% copper, 2.17% lead and 1.69% zinc from 29.8 metres, including 2.60 metres at 1125g/t silver, 1.81% copper, 3.79% lead and 2.94% zinc.
- 5.15 metres at 398g/t silver, 0.66% copper, 3.19% lead and 2.1% zinc from 34.1 metres, including 1.00 metre at 708g/t silver, 1.26% copper, 2.92% lead and 1.45% zinc.
- 6.45 metres at 200g/t silver, 0.33% copper, 1.57% lead and 1.23% zinc from 49.25 metres, including 2.00 metres at 365g/t silver, 0.62% copper, 2.40% lead and 2.47% zinc.
Charles Straw, chief executive officer, commented on the positive intersections:
"Based upon the results of our exploration to date the company remains very confident that the next round of drilling has the potential to contribute towards a significant resource increase that will add a further allure to the Webbs Silver Project."
Webbs has an exploration target of 26 to 57 million silver ounces, with the project remaining open at depth.
New drilling to drive more upgrades
A new round of drilling is scheduled to begin in April 2012, with 6,000 metres of pre-paid and cost competitive reverse circulation drilling aimed at growing the resource inventory.
Silver Mines already has some high priority targets, as some of the widest and highest grade intercepts are still open at relatively shallow depths of 80 metres to 140 metres below surface.
Further upgrades and increases in overall tonnage and contained silver ounces will then be anticipated as the results from the drilling are received later in the year.