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Silver Stars Road to 50 Million Ounces of Silver

“Silver: The most undervalued asset on the planet.”

Andy Schectman Miles Franklin

President of Miles Franklin Precious Metals Investments. He is a prominent expert on the precious metals market and a frequent speaker on gold and silver investments.

Texas District Mineral Resource Estimate

GradeContained Metal
Texas District DepositsTonners
(MT)		AgEq
(g/t)		Ag
(g/t)		Au
(g/t)		Zn
(%)		Pb
(%)		Cu
(%)		AgEq
(Moz)		Ag
(Moz)		Au
(koz)		Zn
(kt)		Pb
(kt)		Cu
(kt)
Twin Hills Oxide/Transition
Indicated0.9153500.05---1.51.51---
Inferred1.1837360.03---0.20.2---
Subtotal1.0850480.04---1.81.71---
Twin Hills Sulphide
Indicated3.5355510.076.35.87
Inferred1.4946430.052.22.13
Subtotal5.0253490.068.57.810
Mt Gunyan Oxide/Transition
Indicated2.4043400.030.110.10-3.33.132.62.4-
Inferred1.4738350.040.120.18-1.81.721.72.7-
Subtotal3.8741390.030.110.13-5.14.854.35.0-
Mt Gunyan Sulphide
Indicated-------------
Inferred0.6239360.030.110.14-0.80.710.70.9-
Subtotal0.6239360.030.110.14-0.80.710.70.9-
Silver Spur Oxide
Indicated0.0378670.081.530.480.050.10.1<10.40.1<0.1
Inferred0.0289800.101.220.570.130.10.1<10.30.1<0.1
Subtotal0.0584740.091.380.530.090.10.1<10.70.3<0.1
Silver Spur Sulphide
Indicated0.17201640.062.530.990.101.10.3<14.21.70.2
Inferred0.45148490.061.910.590.092.10.7<18.62.60.4
Subtotal0.02162530.062.080.700.093.21.0<112.84.30.6
Texas District Totals
Oxide-Transition Total5.004441370.100.110.007.06.665.05.30
Sulphide Total6.266247550.220.080.0112.59.51113.55.20.6
Texas District Total11.2654450.040.160.090.0119.516.216
18.510.50.6

Note: The Twin Hills, Mt Gunyan and Silver Spur MRES use a 25 g/t Ag equivalent (AgEq) cut-off. The AgEq formula used the following processing recoveries: Twin Hills Ag 78%, Au 77%; Mt Gunyan oxide Ag 89%, Au 78%, Zn 12%; Mt Gunyan sulphide Ag 78%, Au 77%, Zn 16%; Silver Spur Oxide Ag 91%, Zn 20%; Silver Spur Sulphide Ag 69%, Zn 93%, Pb 64%. AgEq was calculated using the following formulas: Twin Hills (AgEq) = Ag (g/t)+65.22* Au g/t, Mt Gunyan Oxide AgEq = Ag (g/t) +57.91 * Au (g/t)+4.49* Zn(%), Mt Gunyan Sulphide AgEq= Ag (g/t)+65.22* Au (g/t)+6.84* Zn(%), Silver Spur Oxide AgEq = Ag (g/t) +7.3* Zn(%), Silver Spur Sulphide AgEq= Ag (g/t)+44.92 Zn(%) + 22.67* Pb (%) based on metal prices and metal recoveries into concentrate. Whilst the estimated contained gold for Silver Spur is shown here, it has not been included in the total gold ounces in the reported Mineral Resource as the quantity of contained gold is considered immaterial to the Mineral Resource. For all deposits the metal price assumptions used, where applicable, in the AgEq formula at an exchange rate of US$0.73 were; Ag price A$38/oz, Au price A$2,534/oz, Zn price A$4,110/t, Pb price A$3,014/t. Totals may not add up due to rounding.

Silver Spur Mineral Resource Estimate by Cut off Grade

Cut off AgEq (g/t)Tonners (Mt)AgEq (g/t)Ag (g/t)Au
(g/t)		Zn
(%)
Pb
(%)
Cu
(%)		AgEq
(Moz)
Ag
(Moz)
Au
(koz)		Zn
(kt)
Pb
(kt)
Cu
(kt)
00.8013246-1.820.580.083.41.2-14.64.70.6
100.7114852-1.970.650.093.41.2-13.94.60.6
200.6815454-2.010.680.093.41.2-13.54.60.6
250.6615654-2.030.690.093.31.2-13.54.60.6
300.6515955-2.060.700.093.31.2-13.44.50.6
400.6316457-2.110.720.103.31.2-13.24.50.6
500.5917160-2.190.760.103.21.1-12.94.50.6
600.5518164-2.280.810.113.21.1-12.44.40.6
700.5118867-2.360.860.113.11.1-12.14.40.6
800.4819770-2.450.910.123.01.1-11.74.30.5
900.4420573-2.550.950.122.91.0-11.34.20.5
1000.4221376-2.630.980.122.81.0-10.94.10.5
1100.3822279-2.741.030.132.71.0-10.43.90.5
1200.3523283-2.841.080.132.60.9-9.93.80.5

Mt. Guyan Mineral Resource Estimate by Cut off Grade

Cut off AgEq (g/t)Tonners (Mt)AgEq (g/t)Ag (g/t)Au
(g/t)		Zn
(%)
Pb
(%)
Cu
(%)		AgEq
(Moz)
Ag
(Moz)
Au
(koz)		Zn
(kt)		Pb
(kt)
Cu
(kt)
0116.20650.010.060.03-23.320.43064.833.2-
1022.8519180.020.110.07-14.213.01324.616.6-
206.4435330.030.100.12-7.36.866.67.4-
254.5041380.040.110.13-5.95.555.05.9-
303.1047440.050.120.15-4.74.453.84.6-
401.4761560.080.160.15-2.92.642.32.2-
500.7776690.110.200.16-1.91.731.51.2-
600.4393830.150.240.17-1.31.221.00.7-
700.261131010.180.210.17-0.90.810.50.4-
800.191271140.200.200.17-0.80.710.40.3-
900.131451300.240.210.17-0.60.610.30.2-
1000.091651510.230.230.16-0.50.510.20.2-
1100.071841710.200.260.16-0.40.400.20.1-
1200.061961840.190.280.15-0.40.400.20.1-
Note: These results were originally published in February 2022 as an ASX announcement by the previous owners. Since then, Silver Star has conducted a comprehensive desktop review of the resource estimates, revealing that the recent resource downgrade in June 2021 overlooked several significant factors.With our current drilling program, we are undertaking an extensive infill drilling and twinning initiative aimed at upgrading those resources. We anticipate a swift return to the original estimate of 26 million ounces of silver equivalent under JORC compliance, with the potential for significant resource expansion.Notably, during the ongoing drilling program, we have identified substantial high-grade discoveries around the original crushing plant location. These discoveries offer the opportunity to expand the pit and significantly increase resources. Additionally, exploratory wildcat drilling in high-grade areas, supported by previous exploration work and promising rock chip sample results, indicates exceptional potential for further resource growth.The accompanying map and table provide further detail on these findings.

Tenure Details

Texas Silver has a acquired the following tenements that make up the Texas Silver Project in Queensland.

Tenure IDProject NameGranted
EPM 11455Dumaresq1/04/2023
EPM 12858Oakey Creek10/08/2023
EPM 18950Texas South West31/05/2021
EPM 26275Texas Silver27/02/2022
EPM2 7843Macdonald18/10/2021
EPM 27844Arcot18/10/2021
EPM 8854Texas8/07/2023
ML 100106Texas1/10/2017
ML5 932Silver Spur5/06/2016

Thomson Resources Ltd. ASX Announcement of 1 March 2022

Estimated Value of the Silver Star Tenements

Valuing the cost of past drilling and exploration on a historical silver mine involves several steps:

Review Historical Records

Gather detailed records of all past drilling and exploration activities, including dates, methods and locations.

Calculate Direct Costs

Add up all direct costs associated with these activities, such as labour, equipment, materials and contractor services.

Adjust for Inflation

Use historical cost indexes to adjust past costs to present-day values.

Estimate Indirect Costs

Consider indirect costs like permitting, logistical support and administrative expenses.

Professional Appraisal

Engage a professional appraiser or geologist to validate and refine the valuation based on current industry standards and market conditions.

Extensive Drilling Program Completed

Through this acquisition, Texas Silver has secured comprehensive historical drill data and associated analysis from over 731 drilling sites, totaling a depth of 41,952 meters. This data, collected across multiple exploration programs, will be meticulously modelled to identify the best potential future exploration prospects. Many of the leases have been the subject of early stage, and advanced exploration. As such, over 20 areas of interest have been identified as containing indications of high-grade silver and copper, with additional early indications of gold, lead and other metals on the critical minerals list that need to be investigated.

The JORC 2012 Mineral Resource Estimates (MREs) for the Silver Spur, Twin Hills, and Mt Gunyan deposits total an aggregate of 19.5 Moz AgEq at 54 g/t AgEq.

Reference ASX Announcement of 1 March 2022 Thomson Resources Ltd. – “19.5 Moz Silver Equivalent Indicated and Inferred Mineral Resource Estimate for the Texas Silver District.”

Drilling and Sampling

The majority of holes and meterage are from open hole percussion drilling, which may impact sample quality. Assay methods used include aqua regia digest with AA or ICP finish, which, while potentially partial, may be appropriate for heap leaching.

Grade Thresholds

Both models use a 20g/t Ag grade threshold for interpretation, though a high-grade domain at 40g/t Ag may have been used in 2016. The threshold being close to the cut-off grade may be inappropriate.

Vertical Model Extent

2016 - "Some 200 meters vertically from surface"
2022 - "Extending to 150 meters depth" but also mentions a "200 meters depth limit below surface," which is ambiguous.

A Glittering Opportunity!

Historical Production

  • Century-long legacy of silver production
  • Peak annual output: 840,000 ounces
  • Today's value: $37.8 million at $45/oz silver price

Current JORC Resource

  • 19.5 million ounces of silver equivalent
  • Estimated value: $877.5 million at $45/oz

Asset Breakdown

  • Silver Spur (ML 5932)
  • Twin Hills (100106)
  • Mount Gunyan (100106)

Spotlight on Twin Hills

  • Shovel-ready asset
  • Contains 10.3 million ounces of silver equivalent
  • Estimated value: $463.5 million at $45/oz
GradeContained Metal
Texas District DepositsTonners
(MT)		AgEq
(g/t)		Ag
(g/t)		Au
(g/t)		Zn
(%)		Pb
(%)		Cu
(%)		AgEq
(Moz)		Ag
(Moz)		Au
(koz)		Zn
(kt)		Pb
(kt)		Cu
(kt)
Twin HIlls ML 100106
Indicated4.4355510.06---7.87.39---
Inferred1.6745420.05---2.42.23---
Subtotal6.1052480.06---10.39.511---
Mount Gunyan ML 100106
Indicated2.4043400.030.110.10-3.33.132.62.4-
Inferred2.0939360.040.120.17-2.62.432.43.6-
Subtotal4.541380.040.110.13-5.95.555.05.9-
Silver Spur ML
Indicated0.19184650.62.400.920.091.10.4< 14.61.80.2
Inferred0.47145500.61.880.590.092.20.8< 18.92.80.4
Subtotal0.66156540.62.030.690.093.31.2< 113.54.60.6
Total Indicated7.0254480.050.100.060.0012.210.8127.24.20.2
Total Inferred4.2353400.040.270.150.017.25.4611.36.40.2
Texas District Total11.2654450.040.160.090.0119.516.21618.510.50.6

Silver Star Resources Texas Tenements

Preliminary geological assessment through rock chip sampling, evaluating prospects based on AgEQ (silver equivalent).

The Texas Prospects have yielded rock samples with significant AgEQ (Silver Equivalent) values, showcasing the potential of the region’s mineral resources. These results highlight the area’s prospectively and underscore its potential for further exploration and development. The data provides a strong foundation for advancing the Silver Star Project and supports our strategic focus on unlocking the site’s value.

Texas Silver Mine Flyover

Scan the QR code for the Texas Silver Mine Flyover video.

Silver Star Land Holdings

The total landholding spans an impressive 2,662.73 square kilometres or 1,028.09 square miles (equivalent to 266,272.8 hectares or 657,973.4 acres). To put this into perspective, it is comparable in size to the entire country of Luxembourg or 3.5 times the size of Singapore.

Texas Silver: A Premier Mining and Exploration Opportunity

The Silver Star Region, located within Queensland’s renowned Granite Belt, is a highly prospective and mineral-rich geological province. This region boasts diverse geology, including granitic intrusions, volcanic sequences, and structurally complex terrains, which have historically hosted significant deposits of precious metals like silver, gold, and associated minerals. The area’s favourable tectonic setting and proximity to major fault systems create ideal conditions for hydrothermal activity, resulting in extensive ore body formation.

This exceptional opportunity includes:

  • Exploration Permit for Minerals (EPM): Covering an total area of 771.2 square kilometres (77,120 hectares / 190,583 acres), these permits encompass highly promising areas for resource exploration.
  • Mining Leases (ML): Spanning 1,152.8 hectares (2,849 acres), our mining leases provide direct access to key resource zones in this mineral-rich region.

Applications have been lodged to extend our exploration permits by a additional 1,880 square kilometres (188,000 hectares / 464,642 acres), further enhancing the area’s potential for resource development and investment.

With a combination of approved permits, a strategic location, and ambitious expansion plans, the Silver Star Region represents a unique opportunity to capitalise on Queensland’s thriving mining sector.

Contact us today to explore this unparalleled investment opportunity.

Expansion of Mineable Land Holdings

These new areas encompass regions with a rich history of mining activity in the late 1800s and early 1900s, zones identified as highly prospective through magnet resonance flyover tests, and surrounding land that we wish to explore later.

New Texas Exploration Permit lodged in November 2024 with the QLD Mines Department:

The Texas Prospects have yielded rock samples with significant AgEQ (Silver Equivalent) values, showcasing the potential of the region’s mineral resources. These results highlight the area’s prospectively and underscore its potential for further exploration and development. The data provides a strong foundation for advancing the Silver Star Project and supports our strategic focus on unlocking the site’s value.

  1. Tarona Project
  2. Reatta Project
  3. Three Mile Gully
  4. Treverton Project
  5. Barongarook Project
  6. Bush Creek Project
  7. Denneberg Project
  8. South Branch Project
  9. Yugilbar Project

These applications reflect our strategic focus on areas with proven potential, strengthening our position and increasing our capacity for future resource development. 

Above is a map of the Mines Department showing the new areas (highlighted in orange) we have applied for.

Historical Drilling Calculation

Estimated Cost and value of Past Drilling and Exploration.

  • Review Historical Records

    Collect detailed records of drilling and exploration activities, including dates, methods, and specific locations for the 731 sites.

  • Calculate Direct Costs

    Labour Costs: Determine the wages paid to geologists, engineers, drill operators, and support staff.Equipment Costs: Assess the rental or purchase costs for drilling rigs, vehicles, and other necessary equipment.Material Costs: Include costs for drilling fluids, bits, and other consumables.Contractor Services: Calculate fees paid to any third-party drilling or exploration service providers.

  • Adjust for Inflation

    Use historical cost indexes to adjust past costs to present-day values. For example, if the average cost per meter drilled in the past was $150, adjusting for inflation might increase this to $320 per metre today.

  • Estimate Indirect Costs

    Permitting and Regulatory Costs: Include costs associated with obtaining necessary permits and complying with regulations.Logistical Support: Consider costs for transportation, accommodation, and sustenance for staff.Administrative Expenses: Account for overhead costs related to the exploration project

  • Summary

    Direct Drilling Costs: $12,585,600.Indirect Costs: $2,517,120.Total Estimated Cost: $15,102,720.

Historical drilling completed

  • Total Drilling Sites: 731
  • Total Drilled Depth: 41,952 meters

Note: These recalculated figures provide a comprehensive overview of the drilling costs, taking into account both direct and indirect expenses.

Current Resources to JORC Value Estimate Methodology to Value In-Ground Resources

Estimating the value of the in-ground resources involves estimating the economic value of the mineral resources based on current market conditions, extraction costs, and other relevant factors.

  • Market Price of Silver used for this estimate:

    Current market price of silver: $42 AUD per ounce.

  • Calculate the Gross Value of Resources:

    Current resources to JORC 19.5 million ounces. Reduce the net resources allowing for a 50% recovery rate (recovery rate is what is captured during production).Multiply the net in-ground resources by the market price of silver.

  • Adjust for Inflation

    Use historical cost indexes to adjust past costs to present-day values. For example, if the average cost per meter drilled in the past was $150, adjusting for inflation might increase this to $320 per metre today.

  • Calculate the Net Value of Resources:

    Subtract the total extraction costs from the gross value to get the net value of the resources.

  • Adjust for Risk and Discount Contingency Rate:

    Apply a discount rate to account for the time value of money, operational risks, and uncertainties.Contingency factor of 10%.

  • Summary:

    Gross Value of the net Resources: 409.5 million AUD.Total Extraction Cost with Contingency: 375.375 million AUD.Net Value After Extraction Costs: 34.125 million AUD.

Current Resource Value

GradeContained Metal
Texas District DepositsTonners
(MT)		AgEq
(g/t)		Ag
(g/t)		Au
(g/t)		Zn
(%)		Pb
(%)		Cu
(%)		AgEq
(Moz)		Ag
(Moz)		Au
(koz)		Zn
(kt)		Pb
(kt)		Cu
(kt)
Twin HIlls ML 100106
Indicated4.4355510.06---7.87.39---
Inferred1.6745420.05---2.42.23---
Subtotal6.1052480.06---10.39.511---
Mount Gunyan ML 100106
Indicated2.4043400.030.110.10-3.33.132.62.4-
Inferred2.0939360.040.120.17-2.62.432.43.6-
Subtotal4.541380.040.110.13-5.95.555.05.9-
Silver Spur ML
Indicated0.19184650.62.400.920.091.10.4< 14.61.80.2
Inferred0.47145500.61.880.590.092.20.8< 18.92.80.4
Subtotal0.66156540.62.030.690.093.31.2< 113.54.60.6
Total Indicated7.0254480.050.100.060.0012.210.8127.24.20.2
Total Inferred4.2353400.040.270.150.017.25.4611.36.40.2
Texas District Total11.2654450.040.160.090.0119.516.21618.510.50.6

Reference ASX Announcement of 1 March 2022 Thomson Resources Ltd. – “19.5 Moz Silver Equivalent Indicated and Inferred Mineral Resource Estimate for the Silver Star District.