Searching for silver
Friday, 8th July, 2011
With $10 million in the bank fledgling explorer Silver City Minerals will shortly begin its search for a silver-rich deposit close to the city it is named after.
“We’ve got a full team out there; we are drilling with one drill rig sometime next week,” managing director Chris Torrey said yesterday.
Silver City, which listed on the Australian Stock Exchange this week, holds about 1700 square kilometres of exploration tenements, all within about a 50km radius of Broken Hill.
It aims to complete over 20,000 metres of drilling in the first year, targeting mostly old workings north west of the city including the Allendale Mine area and Golden King, an historic gold-copper mine.
Mr Torrey told the BDT that the company, which has already spent $2m on exploration and acquisitions since it was established in 2008, would obviously like to find a “big deposit” similar to Broken Hill.
But its focus will be to discover a smaller, silver-rich vein - something that has never been done properly according to Mr Torrey.
While the area Silver City will be drilling has been searched before, he said previous companies were only ever looking for large deposits.
Consequently their drill holes were spaced at wide intervals.
Silver City will space its holes much closer, he said, in the hope of identifying a smaller, but still financially viable, deposit.
Mr Torrey put it another way: “The big companies look for big things, the small companies look for small things.
“So we think there’s a real opportunity at the moment.
“We’ve raised $10 million and we’re about to go out and explore for silver based mineral deposits.”
Mr Torrey said it would likely be August before the company received its first drilling results.
The company has established a field office in Broken Hill and assembled a geological team. Mr Torrey expects a second drill rig to join the program shortly.
Silver City’s shares closed steady at .185 cents after reaching a high of .195 on 1.25 million shares traded.