The Silver Mines Limited (ASX: SVL) share price is rocketing, up 14% in afternoon trading. Shares in the ASX resource explorer are now up 27% since last Thursday's closing bell.
Below we take a look at the company's latest update at its Bowdens Silver Project in central New South Wales, which it reports is the largest undeveloped silver deposit in Australia.
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What drill results did Silver Mines report?
Silver Mines' share price is soaring after the company announced it is substantially expanding drilling at Bowdens Silver.
This follows on Friday's announcement (which also saw shares surge) on the Aegean Zone, "a high-grade vein system located beneath the bulk-tonnage Ore Reserve in the Main Zone area of Bowdens".
The company said that the recent success of its drilling, which identified new silver feeder veins, led it to expand the exploration program at Bowdens Silver.
Silver Mines currently has 4 drilling rigs on-site as part of the expanded program which will see 30,000 metres of diamond drilling.
According to the release, recent drill analysis has identified "individual steep feeder veins considered to be source structures to the main Bowdens Silver mineralisation". At Bowdens, these contain the highest-grade mineralisation and extend to depth.
One recently identified individual structure Silver Mines highlights – the Northern Feeder Vein – "is interpreted over a strike of at least 120 metres and to a depth of 260 metres". That's produced a silver grade of more than 1,000 grams (30 ounces) per tonne.
The company is now targeting additional steep feeder vein zones in the central and southern parts of the Bowdens Deposit and is investigating the potential for underground mining at the high-grade Aegean Zone and the Northwest High-Grade Zone.
Silver Mines expects the expanded drilling program will continue through the end of 2021, or longer.
Silver Mines share price snapshot
It's been a fine year for Silver Mines' shareholders, with shares soaring 158% over the past 12 months. By comparison the All Ordinaries Index (ASX: XAO) gained 31% over that same time.
Year-to-date the Silver Mines share price is up 19%.
