The Silver Mines share price is falling today, despite the company delivering positive drill results. We take a closer look.
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The Silver Mines Ltd (ASX: SVL) share price is falling today, down 4% at 24 cents in late morning trading.
This comes despite the ASX silver miner reporting some positive assay results from the diamond drilling program at its Bowdens Silver Project in New South Wales.
What drilling results did Silver Mines report?
In today’s ASX announcement, Silver Mines reported the assays from its Bowdens project had revealed “outstanding high-grade drill results”. According to the company, Bowdens is the largest undeveloped silver deposit in Australia.
Preliminary results returned from the drill hole include:
- 6 metres @ 471g/t silver equivalent (413g/t silver, 1.14% lead, 0.39% zinc) from 96 metres which includes:
- 0 metres @ 1090g/t silver equivalent (966g/t silver, 2.86% lead, 0.56% zinc) from 97 metres; and
- 1 metres @ 874g/t silver equivalent (789g/t silver, 1.67% lead, 0.59% zinc) from 122 metres
Commenting on the results, Silver Mines managing director Anthony McClure said:
We are delighted with the recent exploration from Bowdens Silver. Our team has been tenacious in its work in understanding the deposit and its extensions. This current hole BD21002 has produced some of the best intercepts ever returned at Bowdens further demonstrating the quality of the deposit.
McClure added that the company has 2 rigs on the site to continue with the exploration program to test other high-grade silver targets around the current resource and extensions at depth.
Silver Mines share price and company snapshot
As its name implies, Silver Mines is a silver exploration company. The company’s major NSW operations include projects at Bowdens, Barabolar, Webbs, Conrad, and Tuena.
With the price of silver recently hitting multi-year highs, long-term Silver Mines shareholders have been well rewarded. Over the past 12 months, the Silver Mines share price is up 120%. That compares to a 2% loss on the All Ordinaries Index (ASX: XAO).
Year-to-date, the Silver Mines share price is down 7%.
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*Returns as of February 15th 2021
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.