Silver Mines

LSE : SVLP


November 08, 2012 11:07 ET

Silver Mines: Sulphide Intersections on Regional Silver Targets and App3B on issuance of equity

Silver Mines Limited

SULPHIDE INTERSECTIONS ON REGIONAL SILVER TARGETS and Appendix 3B

HIGHLIGHTS
* Reconnaissance RC Drilling intersects sulphide rich zones and broad alteration zones
* Sulphide rich zones are associated with semi massive sphalerite and galena with lesser
  Chalcopyrite, pyriste and arsenopyrite, similar to Webbs style mineralisation.
* Alteration and sulphides observed over downhole widths from 5m to plus 10m.
Silver Mines Limited (ASX:SVL) is pleased to announce that drilling has commenced on silver
targets located at SVL's 100% owned Mole project in Northern NSW. These targets have been
delineated from geochemical sampling, geological mapping and geophysics. All targets are
associated with old workings the vast majority of which have never been drill tested.

Exploration Licences 6771and 6114 are located approximately 30-40km north east of the Webb's
Silver project and are part of a contiguous group of tenements known as the Mole Project. The
project area hosts numerous documented metalliferous occurrences which occur along a broad
northwest trend approximately 11 km long and 2km wide (see Figure 1). The geology of the area is
dominated by Permian aged sediments which are intruded by the Mole Granite. Silver Mines 
considers this area to haveexcellent potential to host Webb's style silver rich polymetallic deposits.

BACKGROUND
Exploration conducted on EL6771 and EL6114 has included rock chip and soil sampling, geological
mapping and Induced Polarisation surveys. These programs were generally conducted over areas of
old workings and associated structural trends.
Rock chip and soils sampling conducted by Silver Mines and previous explorers has delineated a
broad district scale zone of highly anomalous geochemistry. A total of 647 rock chip samples
consisting of a combination of waste dump samples, outcrop and channel samples plus local soil
sampling programs have returned anomalous to highly elevated levels of Ag, Pb, Zn, and Cu in
common association with As, Bi and locally elevated Sb, Sn and W. The geochemical signature and
associated geology is analogous to the Webbs Silver deposit and supports SVL's view of the silver
potential in the region.
Selected results are shown in Table 1. This shows the high tenor of these samples and that high
grade silver commonly occurs with 5% to plus 10% combined lead-zinc and minor copper. Results of
the whole rock chip dataset are presented in Figure 1.

Table 1 Mole River Selected rock chip results

Dataset       Easting     Northing      AG_g/t      Cu_%       Pb_%       Zn_%        Prospect
SVL           386079      6765737       2950        0.17       4.52       0.07        Burra
WMC           384170      6766895       1340        0.44       26.80      1.22        Torny
SVL           386552      6765285       1195        0.28       6.92       7.47        Burra
WMC           384170      6766895       779         0.58       0.01       12.30       Torny
SVL           386512      6765285       750         0.06       9.35       3.94        Burra
Kennecot      365105      6786287       670         0.01       8.78       0.01        
Kennecott     384305      6766887       620         0.47       8.4        16.00       Torny
WMC           381801      6772401       614         2.41       0.22       0.01        Heffernans
Kennecott     384105      6770087       550         0.91       3.24       15.24       Hazeldean
Kennecott     381805      6765087       540         0.18       1.50       0.48        
SVL           386552      6765285       520         0.10       3.20       4.30        Burra
SVL           386640      6765256       440         0.02       0.85       0.08        Burra
WMC           384161      6766913       437         0.22       0.01       2.55        Torny
SVL           386640      6765256       420         0.04       1.00       0.41        Burra
SVL           386512      6765285       384         1.67       0.07       2.77        Burra
SVL           386079      6765737       381         0.12       3.97       0.16        Burra
SVL           384668      6767729       354         0.47       9.86       0.31        Mt Morgan
All SVL samples are sent to ALS Chemex. The whole rock sample is crushed to-6mm, then pulverised
to80%p 75microns. Routine assaying is conducted by ALS Method ICP41-S. this is an Aqua regia
digest with an ICP-AES finish. When elements exceed upper detections limits of 100ppm for Ag and
1% for Cu, Pb and Zn they are reanalysed by an appropriate ore grade acid technique (ALS
methodOG46), and in the case of silver, occasionally using a gravimetric technique. Insertion of
appropriate QA/QC samples ensures that laboratory accuracy and precision are monitored.

RECENT DRILLING RESULTS
Silver Mines are conducting reconnaissance level drilling aimed at demonstrating the silver
potential of the area. Drilling has been completed at the Burra-Ecquador prospect. Six holes were
completed on sections 50-60m apart and covered about 350m of strike length. Mineralisation
intersected in all holes is present as massive-semi massive sulphide zones over 1-2m wide.
Importantly these zones are commonlyenveloped by silica-sericite altered wallrock with accompanying 
veinlets and disseminations ofsulphides occurring in the massive-semi massive zones. Many of these 
zones are up to severalmetres wide with alteration observed over downhole widths of greater than 10m.
Silver Mines believes this style of mineralisation is similar to that which occurs at the Webbs
Silver deposit. That is narrow zones of 'bonanza lode' enveloped in lower grade altered and
mineralized country rock. Assay results are awaited.

FUTURE WORK
Silver Mines plan to drill the Torny, Mt Morgan and Hazeldean prospects. These prospects are
associated with old workings and associated anomalous geochemistry. At the Hazeldean prospect a
plus 30m wide zone of alteration and stockworking has been observed and is associated with
elevated silver and base metals in rock chips and soils.
Silver Mines is highly encouraged by the results of this first pass reconnaissance drilling.
Results will be reported when available.

Please direct any queries regarding the content of this report to Charles Straw (CEO) on +61 2
9253 0900
orcstraw@silverminesltd.com.au.


Competent Person Declaration

The information in this Document that relates to Exploration Results, Mineral Resources or Ore
Reserves is based on information compiled by Mr David Hobby, consulting geologist to SVL, who is a
Member of The Australasian Institute of Mining and Metallurgy. Mr Hobby has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to
the activity which he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of the 'Australasian Code for Reporting of Exploration' for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr Hobby consents to the inclusion in the report of
the matters based on his information in the form and context in which it appears.

For Map 1 ELs 6114 and 6771 Rock Chip Ag Chemistry and Prospects please see
http://www.silverminesltd.com.au/media/3045/1211101SVL_ASX_Mole.pdf






                                                                  Rule 2.7, 3.10.3, 3.10.4, 3.10.5
                                            Appendix 3B
                                                 
                                      New issue announcement,
                        application for quotation of additional securities
                                           and agreement

Information or documents not available now must be given to ASX as soon as available.
Information and documents given to ASX become ASX's property and may be made public.
Introduced  1/7/96.   Origin: Appendix 5.  Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002,
            1/1/2003, 24/10/2005.


Name of entity
Silver Mines Limited

ACN
107 452 942

We (the entity) give ASX the following information.

Part 1 - All issues
You must complete the relevant sections (attach sheets if there is not enough space).

1     +Class of +securities issued or  to   Ordinary and Options (Unlisted)
      be issued                              
      
                                             
2     Number  of +securities issued or to    1,240,000 fully paid ordinary shares; and 620,000
      be  issued  (if known)  or  maximum    unlisted options
      number which may be issued
      
                                             
3     Principal  terms of the +securities    
      (eg, if options, exercise price and    Fully paid Ordinary shares; and
      expiry   date;   if   partly   paid    
      +securities, the amount outstanding    Options (unlisted), exercise price 10 cents
      and  due  dates  for  payment;   if    expiry 13 November 2013
      +convertible    securities,     the
      conversion  price  and  dates   for
      conversion)
                                            
4     Do  the +securities rank equally in    Yes
      all  respects  from  the  date   of    
      allotment  with an existing  +class
      of quoted +securities?
      
      If the additional securities do not
      rank equally, please state:
      * the  date from which  they do
      * the  extent to which  they
        participate for the next dividend,
        (in   the   case  of  a   trust,
        distribution) or interest payment
      * the  extent to which  they
        do not rank equally, other than in
        relation  to the next  dividend,
        distribution or interest payment
                                            
5     Issue price or consideration           $0.06 per fully paid ordinary share
      
                                            
6     Purpose of the issue                   The issue was as a result of shortfall relating
      (If issued as consideration for the    to a securities purchase plan dated and announced
      acquisition of assets, clearly         to the market on 31 August 2012
      identify those assets)
      
                                           
7     Dates of entering  +securities         N/A
      into uncertificated holdings  or
      despatch of certificates
        
                                            
                                             Number                    +Class
8     Number and +class of all               165,237,091               Fully Paid Ordinary
      +securities  quoted on ASX                                       Shares
      (including the securities in                             
      clause 2 if applicable)
         


                                             Number                    +Class
9     Number and +class of all               13,815,343                Unlisted Options,
      +securities  not  quoted on ASX                                  exercise price 10 cents,
      (including the  securities in                                    Expiry 13 November 2013
      clause 2 if applicable)                                        
                                                                       Unlisted Options,
                                             2,000,000                 exercise price 40 cents,
                                                                       Expiry 27 August 2013.
                                                                       Vest - 27 August 2011
                                                                      
                                                                      
                                                                       Unlisted Employee
                                             8,500,000                 Options, exercise price
                                                                       50 cents, Expiry Date 23
                                                                       December  2015
                                                                      
                                                                      
                                                                      
                                            
10    Dividend policy (in the case of a      Unchanged
      trust,  distribution  policy)  on
      the increased capital (interests)





Part 2 -  Bonus issue or pro rata issue

11      Is security holder approval          N/A
        required?     
                                             
12      Is  the issue renounceable or non-   N/A
        renounceable?
                                             
13      Ratio  in  which the  +securities    N/A
        will be offered
                                             
14      +Class of +securities to which the   N/A
        offer relates
                                             
15      +Record date to determine            N/A
        entitlements
                                             
16      Will holdings on different           N/A
        registers  (or  subregisters) be
        aggregated for calculating
        entitlements?
                                             
17      Policy for deciding entitlements     N/A
        in relation to fractions
        
                                             
18      Names  of  countries in which  the   N/A
        entity  has +security holders  who
        will not be  sent  new   issue
        documents
        
        Note: Security  holders  must  be
        told how their entitlements are to
        be dealt with.
        
        Cross reference: rule 7.7.
                                             
19      Closing date for receipt   of        N/A
        acceptances or renunciations
                                             
20      Names of any underwriters            N/A
                                             
21      Amount of any underwriting fee  or   N/A
        commission
                                             
22      Names of any brokers to the issue    N/A
                                             
23      Fee or commission payable to  the    N/A
        broker to the issue
                                             
24      Amount of any handling fee payable   N/A
        to  brokers  who lodge acceptances
        or renunciations  on  behalf  of
        +security holders
                                             
25      If  the  issue  is  contingent  on   N/A
        +security  holders' approval,  the
        date of the meeting
                                             
26      Date  entitlement  and  acceptance   N/A
        form  and  prospectus  or  Product
        Disclosure Statement will be  sent
        to persons entitled
                                             
27      If  the entity has issued options,   N/A
        and the  terms  entitle option
        holders to participate on
        exercise, the  date on which
        notices  will be sent to  option
        holders
                                             
28      Date rights trading will begin (if   N/A
        applicable)
                                             
29      Date  rights trading will end  (if   N/A
        applicable)
                                             
30      How do +security  holders  sell      N/A
        their entitlements in full through
        a broker?
                                             
31      How do +security holders sell part   N/A
        of  their  entitlements through  a
        broker and accept for the balance?
                                             

32      How do +security holders dispose     N/A
        of  their entitlements (except  by
        sale through a broker)?
                                             
33      +Despatch date                       N/A
        


Part 3 - Quotation of securities
You need only complete this section if you are applying for quotation of securities

34      Type of securities
        (tick one)
        
       -----
(a)      x    Securities described in Part 1
       -----       

(b)           All other securities
              Example:  restricted  securities at the end of the  escrowed  period,  partly  paid
              securities  that  become  fully  paid,  employee  incentive  share  securities  when
              restriction   ends,  securities  issued  on  expiry  or  conversion  of  convertible
              securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities


Tick to indicate you are providing the information or documents
     
35   -----    If  the  +securities are +equity securities, the names of the 20 largest holders  of
              the  additional +securities, and the number and percentage of additional +securities
     -----    held by those holders
                        
36   -----    If   the  +securities  are  +equity  securities,  a  distribution  schedule  of  the
              additional +securities setting out the number of holders in the categories
     -----    1 - 1,000
              1,001 - 5,000
              5,001 - 10,000
              10,001 - 100,000
              100,001 and over
                        
37   -----    A copy of any trust deed for the additional +securities

     -----

Entities that have ticked box 34(b)

38      Number of securities for which       N/A
        +quotation is sought
        
                                             
39      Class of +securities for  which      N/A
        quotation is sought                          
        
                                     
40      Do the +securities rank equally in   N/A
        all respects from the date of
        allotment  with an existing  +class
        of quoted +securities?
        
        If the additional securities do not
        rank equally, please state:
        * the  date from which  theydo
        * the  extent to which  they
          participate for the next dividend,
          (in the case of a trust,
          distribution) or interest payment
        * the  extent to which  they
          do not rank equally, other than in
          relation  to the next  dividend,
          distribution or interest payment
                                             
41      Reason  for  request for  quotation  N/A
        now                                          
        
        Example: In the case of restricted
        securities, end  of restriction
        period
        
        (if issued upon conversion of
        another security, clearly identify
        that other security)

                                             
                                             Number                     +Class
42      Number and +class of all             N/A                        N/A
        +securities quoted on ASX
        (including the securities in clause
        38)
        
        
        

Quotation agreement

1       +Quotation of our additional +securities is in ASX's absolute discretion.  ASX may quote
        the +securities on any conditions it decides.

2       We warrant the following to ASX.

        *     The issue of the +securities to be quoted complies with the law and is not for an
              illegal purpose.

        *     There is no reason why those +securities should not be granted +quotation.

        *     An offer of the +securities for sale within 12 months after their issue will not
              require disclosure under section 707(3) or section 1012C(6) of the Corporations
              Act.
              Note: An entity may need to obtain appropriate warranties from subscribers for the
              securities in order to be able to give this warranty

        *     Section  724  or  section  1016E of the Corporations Act does  not  apply  to  any
              applications received by us in relation to any +securities to be quoted and  that
              no-one  has any right to return any +securities to be quoted under sections  737,
              738  or  1016F  of  the  Corporations Act at the time that we  request  that  the
              +securities be quoted.
        
        *     If we are a trust, we warrant that no person has the right to return the
              +securities to be quoted under section 1019B of the Corporations Act at the time
              that we request that the +securities be quoted.

3       We will indemnify ASX to the fullest extent permitted by law in respect of any claim,
        action or expense arising from or connected with any breach of the warranties in this
        agreement.

4       We give ASX the information and documents required by this form.  If any information or
        document not available now, will give it to ASX before +quotation of the +securities
        begins.  We acknowledge that ASX is relying on the information and documents.  We warrant
        that they are (will be) true and complete.


Sign here:       ......................................................    Date: 1 November 2012
                (Company Secretary)

Print name:      Kevin Martin Lynn
                                          == == == == ==

___________________________________________________________________________________________________
+ See chapter 19 for defined terms







                                                                  Rule 2.7, 3.10.3, 3.10.4, 3.10.5
                                            Appendix 3B
                                                 
                                      New issue announcement,
                        application for quotation of additional securities
                                           and agreement

Information or documents not available now must be given to ASX as soon as available.
Information and documents given to ASX become ASX's property and may be made public.
Introduced  1/7/96.   Origin: Appendix 5.  Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002,
            1/1/2003, 24/10/2005.


Name of entity
Silver Mines Limited

ACN
107 452 942

We (the entity) give ASX the following information.

Part 1 - All issues
You must complete the relevant sections (attach sheets if there is not enough space).

1     +Class of +securities issued or  to    Ordinary and Options (Unlisted
      be issued                              
      
                                             
2     Number  of +securities issued or to    650,000 fully paid ordinary shares; and 325,000
      be  issued  (if known)  or  maximum    unlisted options
      number which may be issued
      
                                             
3     Principal  terms of the +securities    
      (eg, if options, exercise price and    Fully paid Ordinary shares; and
      expiry   date;  if  partly   paid    
      +securities, the amount outstanding    Options (unlisted), exercise price 10 cents
      and  due  dates  for  payment; if      expiry 13 November 2013
      +convertible  securities, the
      conversion  price  and  dates   for
      conversion)
                                            
4     Do  the +securities rank equally in    Yes
      all  respects  from  the  date   of    
      allotment  with an existing  +class
      of quoted +securities?
      
      If the additional securities do not
      rank equally, please state:
      *  the  date from which  they do
      *  the  extent to which  they
         participate for the next dividend,
         (in   the   case  of  a   trust,
         distribution) or interest payment
      *  the  extent to which  they
         do not rank equally, other than in
         relation  to the next  dividend,
         distribution or interest payment
                                            
5     Issue price or consideration           $0.06 per fully paid ordinary share
      
                                            
6     Purpose of the issue                   The issue was as a result of shortfall relating
      (If issued as consideration for the    to a securities purchase plan dated and announced
      acquisition   of  assets,   clearly    to the market on 31 August 2012
      identify those assets)
      
                                           
7     Dates   of  entering  +securities      5 November 2012
      into  uncertificated holdings  or
      despatch of certificates
        
                                            
                                             Number                    +Class
8     Number   and   +class   of    all      165,887,091               Fully Paid Ordinary
      +securities   quoted    on    ASX                                Shares
      (including   the  securities   in                             
      clause 2 if applicable)
        


                                             Number                    +Class
9     Number   and   +class   of    all      14,140,343                Unlisted Options,
      +securities  not  quoted  on  ASX                                exercise price 10 cents,
      (including   the  securities   in                                Expiry 13 November 2013
      clause 2 if applicable)                                        
                                                                       Unlisted Options,
                                             2,000,000                 exercise price 40 cents,
                                                                       Expiry 27 August 2013.
                                                                       Vest - 27 August 2011
                                                                      
                                                                      
                                                                       Unlisted Employee
                                             8,500,000                 Options, exercise price
                                                                       50 cents, Expiry Date 23
                                                                       December  2015
                                                                      
                                                                      
                                                                      
                                            
10    Dividend policy (in the case of a     Unchanged
      trust,  distribution  policy)  on
      the increased capital (interests)





Part 2 -  Bonus issue or pro rata issue

11      Is security holder approval          N/A
        required?
        
                                             
12      Is  the issue renounceable or non-   N/A
        renounceable?
                                             
13      Ratio in which the +securities       N/A
        will be offered
                                             
14      +Class of +securities to which the   N/A
        offer relates
                                             
15      +Record date to determine            N/A
        entitlements
                                             
16      Will holdings on different           N/A
        registers (or  subregisters) be
        aggregated for calculating
        entitlements?
                                             
17      Policy for deciding entitlements     N/A
        in relation to fractions
        
                                             
18      Names  of  countries in which  the   N/A
        entity  has +security holders  who
        will not be sent new  issue
        documents
        
        Note:  Security  holders  must  be
        told how their entitlements are to
        be dealt with.
        
        Cross reference: rule 7.7.
                                             
19      Closing date for receipt of          N/A
        acceptances or renunciations
                                             
20      Names of any underwriters            N/A
                                             
21      Amount of any underwriting fee  or   N/A
        commission
                                             
22      Names of any brokers to the issue    N/A
                                             
23      Fee  or commission payable to  the   N/A
        broker to the issue
                                             
24      Amount of any handling fee payable   N/A
        to  brokers  who lodge acceptances
        or  renunciations on  behalf  of
        +security holders
                                             
25      If  the  issue  is  contingent  on   N/A
        +security  holders' approval,  the
        date of the meeting
                                             
26      Date  entitlement  and  acceptance   N/A
        form  and  prospectus  or  Product
        Disclosure Statement will be  sent
        to persons entitled
                                             
27      If  the entity has issued options,   N/A
        and the terms entitle option
        holders  to participate on
        exercise, the  date on which
        notices will be sent to option
        holders
                                             
28      Date rights trading will begin (if   N/A
        applicable)
                                             
29      Date rights trading will end  (if    N/A
        applicable)
                                             
30      How do +security  holders  sell      N/A
        their entitlements in full through
        a broker?
                                             
31      How do +security holders sell part   N/A
        of  their  entitlements through a
        broker and accept for the balance?
                                             

32      How  do  +security holders dispose   N/A
        of  their entitlements (except  by
        sale through a broker)?
                                             
33      +Despatch date                       N/A
        


Part 3 - Quotation of securities
You need only complete this section if you are applying for quotation of securities

34      Type of securities
        (tick one)
        
      -----
(a)     x     Securities described in Part 1
      -----        

(b)           All other securities
              Example:  restricted  securities at the end of the  escrowed  period,  partly  paid
              securities  that  become  fully  paid,  employee  incentive  share  securities  when
              restriction   ends,  securities  issued  on  expiry  or  conversion  of  convertible
              securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities


Tick to indicate you are providing the information or documents

35   -----    If  the  +securities are +equity securities, the names of the 20 largest holders  of
              the  additional +securities, and the number and percentage of additional +securities
     -----    held by those holders
                        
36   -----    If   the  +securities  are  +equity  securities,  a  distribution  schedule  of  the
              additional +securities setting out the number of holders in the categories
     -----    1 - 1,000
              1,001 - 5,000
              5,001 - 10,000
              10,001 - 100,000
              100,001 and over
                        
37   -----    A copy of any trust deed for the additional +securities

     -----

Entities that have ticked box 34(b)

38      Number of securities for which       N/A
        +quotation is sought
        
                                             
39      Class of +securities for  which      N/A
        quotation is sought                          
                                             

40      Do  the +securities rank equally in  N/A
        all  respects  from  the date of
        allotment with an existing  +class
        of quoted +securities?
        
        If the additional securities do not
        rank equally, please state:
        * the  date from which  they do
        * the  extent to which  they
          participate for the next dividend,
          (in   the   case  of  a   trust,
          distribution) or interest payment
        * the  extent to which  they
          do not rank equally, other than in
          relation  to the next  dividend,
          distribution or interest payment
                                             
41      Reason for request for quotation     N/A
        now                                 
        Example: In the case of restricted
        securities, end  of restriction
        period
        
        (if issued upon conversion of
        another security, clearly identify
        that other security)

                                             
                                             Number                     +Class
42      Number    and   +class    of    all  N/A                        N/A
        +securities    quoted    on     ASX
        (including the securities in clause
        38)
        
        
Quotation agreement

1       +Quotation of our additional +securities is in ASX's absolute discretion.  ASX may quote
        the +securities on any conditions it decides.

2       We warrant the following to ASX.

        *        The issue of the +securities to be quoted complies with the law and is not for an
                 illegal purpose.

        *        There is no reason why those +securities should not be granted +quotation.

        *        An offer of the +securities for sale within 12 months after their issue will not
                 require disclosure under section 707(3) or section 1012C(6) of the Corporations
                 Act.
                 Note: An entity may need to obtain appropriate warranties from subscribers for the
                 securities in order to be able to give this warranty

        *        Section  724  or  section  1016E of the Corporations Act does  not  apply  to  any
                 applications received by us in relation to any +securities to be quoted and  that
                 no-one  has any right to return any +securities to be quoted under sections  737,
                 738  or  1016F  of  the  Corporations Act at the time that we  request  that  the
                 +securities be quoted.
        
        *        If we are a trust, we warrant that no person has the right to return the
                 +securities to be quoted under section 1019B of the Corporations Act at the time
                 that we request that the +securities be quoted.

3       We will indemnify ASX to the fullest extent permitted by law in respect of any claim,
        action or expense arising from or connected with any breach of the warranties in this
        agreement.

4       We give ASX the information and documents required by this form.  If any information or
        document not available now, will give it to ASX before +quotation of the +securities
        begins.  We acknowledge that ASX is relying on the information and documents.  We warrant
        that they are (will be) true and complete.


Sign here:       ......................................................    Date: 5 November 2012
                (Company Secretary)

Print name:      Kevin Martin Lynn
                                          == == == == ==

___________________________________________________________________________________________________
+ See chapter 19 for defined terms


Contact Information

  • Silver Mines