A detailed regulatory verification program by Black Bear Minerals (ASX: BKB) has confirmed that key operating and environmental permits to support restart planning and future operations for the Shafter silver project in the US are active and in good standing.
Minor administrative and restart-specific permits are yet to be finalised through a defined operational restart strategy being compiled with engineering consultant Ausenco.
The work forms part of Black Bear’s aim to de-risk development and position Shafter as a rapid restart candidate leveraging its performance history and $150 million in existing infrastructure which includes a modern Merrill-Crowe plant and refinery and a 2,230 square metre warehouse complex, assay laboratory, and administrative offices.
The maintenance of valid permitting is a key competitive advantage for advanced-stage projects and can significantly reduce development timelines, regulatory risk and upfront capital costs.
Shafter Project Restart
The high-grade, advanced-stage Shafter project was placed on care and maintenance in 2013 by previous owner Aurcana at a time when silver prices retreated to less than US$18 per ounce.
Black Bear acquired the project last year and is planning a restart against a backdrop of record high prices, which have increased by 300% since 2013 to US$75/oz.
Silver has undergone growing prominence in the critical minerals mix, as it has become an essential component in the energy, defence, semiconductor, and EV sectors.
Total global demand for silver currently outstrips mine supply, and experts have forecast significant declines in global mine production and refining.
Staged Development Plan
Black Bear’s staged development plan will investigate restart options and timing in parallel with ++exploration drilling,++ as well as conversion of Shafter’s 17.6 million ounce silver foreign mineral resource estimate to a JORC-compliant figure.
Completion of this work would enable the commencement of a scoping study and facilitate a formal restart final investment decision.
Chief executive officer Dennis Lindgren said confirmation of major permits positioned the project as a near-term domestic silver production opportunity.
“Since acquiring Shafter, our focus has been on ensuring administrative continuity, regulatory compliance and permitting so that the project is development ready,” he said.
“This outcome materially strengthens our ability to advance technical studies, engage financing partners and progress toward a near-term restart strategy.”
Aggressive Exploration Program
Black Bear is currently executing an aggressive exploration program to expand the Shafter resource across zones including the MacDaniel Trend over 2.4 kilometres of strike that remains largely untested.
++Peak rock chip results++ of up to 3,100 grams per tonne silver, 4.5% zinc and 6% lead have previously been delivered outside of the current resource area with more recent sampling returning high-grade gold and vanadium assays recent sampling and confirming the project’s multi-commodity potential.
The company is also assessing shallow mineralisation in the area of the historic Presidio mine for potential open pit extraction.
The mine features over 160km of underground workings and four production shafts, which yielded 35.2Moz silver between 1883 and 1942 at an average grade of 521g/t.
