A comprehensive evaluation of previous drilling results and JORC documentation indicates the potential to optimise and recalculate existing resources.
We have the opportunity to initiate the extraction of pregnant ponds and process and smelt an estimated 30,000-50,000 ounces of silver. This will bring the Texas Silver project back into production, making it one of the few operational silver mines in Australia, a notable differentiation for the IPO.
A 2,250-metre drilling program occurred in early 2025 with the final JORC numbers currently being finalised" to "A 2,250-metre drilling program was completed in early 2025, with the final JORC resource figures currently being compiled and finalised.
By reassessing the silver potential through the reprocessing of more than 2.5 million tonnes of above-ground material using conventional CIL processing, the Project has the opportunity to materially increase its contained silver resources. These readily accessible stockpiles present a low-risk, near-term processing opportunity without the need for additional mining activities.
We aim to secure additional unexplored but targeted land on the borders of the existing tenements. Based on historical data, these areas are expected to contain significant high-yielding deposits. Successfully acquiring these tenements could increase the Texas Silver footprint by over 150%.
Historical core assays were only tested for base metals with the limited technology at the time and the costs where prohibitive. Reviewing and assaying historical core samples could confirm further silver resources that have not been brought to book due to the JORC requirements commercial quantities of critical metals identified in preliminary assays over the past 25 years.
To advance these priority targets, a drilling campaign has been scheduled to systematically test the identified anomalies and evaluate their potential to support further resource growth. The program will allocate 50% of its efforts toward upgrading existing resources by validating earlier drilling results, which the geological team believes will yield higher net resources. The remaining 50% will focus on exploring the three identified high-priority discovery sites.
Additionally, we have engaged H&S Consultants (HSC), independent experts, to verify the geological team’s findings and provide a JORC-compliant report. On August 7th, HSC completed the first phase of their process, confirming that an additional four million ounces can be added to the current resources. This report will be included in the information pack, alongside a comprehensive listing of the plant equipment, bonds, and other assets associated with the Texas Project to provide a complete overview of the opportunity.
The geological team has advised that during their Phase Two review, they have identified the potential to add a further five million ounces (silver equivalent) to the resources. We have tasked HSC to validate these findings. If confirmed, the resources, following the Phase One and Two audits, will rise from 19.5 million to 28.5 million ounces, significantly exceeding previous projections.
The geological team will then proceed with the final phase of their historical exploration work to assess additional potential increases to the resources, further enhancing the project’s value and opportunity.
Twin Hills is a sediment-hosted, low-grade silver-gold deposit with minor concentrations of zinc, lead, and copper. Approximately 25% of the known sulphide deposit was extracted during the previous open pit and heap leach operations at Twin Hills, leaving easily accessible outcropping silver-gold sulphide mineralisation in the pit floor, facilitating a straightforward restart of mining operations.
Mt Gunyan, located 2 km northeast of the Twin Hills pit, is an undeveloped silver-gold-zinc-lead deposit that outcrops as a prominent hill. The deposit is mostly oxidised, with silver mineralisation starting at the surface and continuing to depths of up to 150 metres, remaining open below this depth.
Silver Spur is a structurally controlled silver-base metal deposit situated 1 km southeast of Twin Hills. Underground mining between 1892 and 1925 yielded approximately 2.19Moz of silver at an average grade of 800g/t, along with significant quantities of zinc, lead, copper, and by-product gold.
Modelling indicates that Twin Hills remains open at depth in several areas, where step-out drilling could quickly expand the mineralisation, particularly to the north where higher-grade mineralisation remains open at shallow depths and has not been tested below approximately 60 metres from the surface. Additionally, higher-grade silver mineralisation under the core of the deposit, where interpreted ‘feeder structures’ exist, presents an attractive target for further exploration.
At Silver Spur, mineralisation remains under-drilled. The block model suggests that high-grade silver-zinc Stokes mineralisation is open to the north, making it a priority target for expanding the resource. Furthermore, underground rock chip sampling from 1971, although not used in the resource calculations, indicates that higher-grade zinc and silver mineralisation extends beyond the current block model limits, representing another promising drill target. Near-surface oxide mineralisation outlined by previous drilling at Silver Spur North is also a prime area for further exploration.
Silver Star Resources will undertake geological re-evaluation and drill hole database validation at Webbs to prepare a maiden resource estimate for the high-grade silver base metal deposit. Additionally, a large-scale geophysical program was completed across the Texas District to identify and refine targets for the second-quarter drilling campaign, with a focus on prioritising high-grade Silver Spur-style mineralisation. Preparations are also ongoing for the metallurgical and process study for the centralised processing facility.
The processing shed is a key operational facility within the mining operation, purpose-built to house the equipment and systems required to extract, refine and prepare mineralised material for market. Strategically located adjacent to the processing ponds, it provides a controlled and efficient working environment that supports streamlined operations, minimises environmental risk, and enhances workplace safety. This integrated design ensures consistent product quality while optimising overall processing performance.
An updated 2025 resource estimate for the Twin Hills deposit reports 14.32 million tonnes at 44.2 g/t AgEq, containing 22.33 million ounces of silver equivalent, including 18.40 million ounces of silver and 30.7 thousand ounces of gold. This represents a 135% increase in tonnage and a 99% increase in silver equivalent ounces compared to 2022, confirming significant growth in the scale and contained metal of the deposit.
An updated 2025 resource estimate for the Mt Gunyan deposit reports 4.76 million tonnes at 37.5 g/t AgEq, containing 5.73 million ounces of silver equivalent, including 5.03 million ounces of silver, 0.06 g/t gold and 0.13% zinc. This represents a 6% increase in tonnage since 2022, together with a 50% rise in gold grade and an 18% uplift in zinc content, confirming steady resource growth and reinforcing Mt Gunyan’s role as a complementary polymetallic asset within the Texas Silver Project.
An updated 2025 resource estimate for the Silver Spur deposit reports 0.68 million tonnes at 108 g/t AgEq, containing 2.35 million ounces of silver equivalent, including 0.57 million ounces of silver, 1.49% zinc and 0.53% lead. This reflects a 3% increase in tonnage compared to 2022, with the revised model supporting a broader bulk open-pit potential while confirming Silver Spur as a compact, high-grade polymetallic deposit within the Texas Silver Project.
Several prospects look to have potential for follow up (see map below).In very general terms there are prospects to the west (Hornet) and east (Argentum) as well as a 14km long NW-SE trend that runs semi-continuously from Silver Spur through Twin Hills to Tornado and Branch Creek. Limited drilling of these targets has been carried out and that historic drilling will be assessed going forward.
A drill proposal consisting of around 5,000m, costing roughly $1.5 million has been designed. HSC modelling suggests the potential for the program, depending on some success, to increase the confidence with 8.2 Moz Ag into measured and 4.4 Moz into indicated with an overall increase in Moz to 15.4.The drill program will need to be fine-tuned depending on access and early results.
*Silver Equivalent Ag Eq (g/t) = [Ag (g/t) + 64.5 x Au (g/t)+ 26.1 x Pb(%) + 125.1 x Cu(%) + 37.8 x Zn(%)] calculated from prices of US $28.12/oz Ag, US $1814/oz Au, US $10117.5/t Cu, US $2228.5/t Pb, US $3061.5/t Zn and metallurgical recoveries of 85% Ag , 85% Au, 90% Pb, 95% Cu , 95% Zn estimated from test work.
