Shares of Silver Mines Ltd [ASX:SVL] are up close to 3% today. At time of writing the share price is sitting at 22 cents.
The share price is up after the company said they’ve started drilling at the Tuena gold project.
Tuena — a gold town during the 1850s gold rush
The Tuena gold project is located 80 km south of Orange in New South Wales. In 1851, gold was found nearby at the Abercrombie river, and a few months later at Tuena. The place quickly became a major gold town during the rush.
Silver Mines first acquired Tuena in 2017, with the objective of finding large gold deposits. Tuena not only has some history but is also close by and has some similarities to Regis Resources’ 2.3 million-ounce resource, McPhillamys.
Silver Mines owns 100% of Tuena, which has four exploration licences covering 747 square kilometres.
While the Tuena gold project was part of the Australian gold rush and worked until the 1900s, the area hasn’t really been explored since.
Now Silver Mines has started a 20 hole 4,000 metres of reverse circulation (RC) drilling. The objective is to test under several of the historic hard-rock gold workings. They also want to explore two targets: Lucky Hit South and Markham’s Prospects, which are getting tested for bulk-tonnage gold mineral systems.
Source: Silver Mines
According to the announcement, the company has so far done reconnaissance mapping, rock sampling, and soil geochemistry, along with flying a detailed magnetic survey. It has defined over 15 individual zones with anomalous gold in their soil samplings.
This all comes after Friday’s find, where the company found gold for the first time at the Northwest Zone at Bowden’s silver project, which is located about 150 km southwest from Tuena. You can read more on that here.
What could happen next?
Silver Mines expects the initial results will come in during late October.
Since the beginning of the year the share price for Silver Mines Ltd has appreciated by close to 80%.
Gold is certainly getting lots of attention with prices close to US$2,000 per ounce.
If you are looking to get some exposure to gold through gold stocks but aren’t sure where to start, check out Greg Canavan’s guide on ‘How to Pick Winning Gold Stocks’.
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