Black Bear assesses restart of Texas silver project
ASX-listed Black Bear Minerals has engaged global engineering and project delivery firm Ausenco to undertake an operational restart assessment at its Shafter silver project in Texas, as it evaluates a near-term pathway to US domestic silver production.
The scope of work includes site inspections, dilapidation studies and order-of-magnitude capital estimates to assess the condition of existing infrastructure and define a high-level restart strategy for the project, which was placed on care-and-maintenance in 2013.
Black Bear said the assessment would focus on leveraging Shafter’s substantial existing surface and underground infrastructure to minimise capital requirements and accelerate a potential return to production. Infrastructure at the site includes a mill, refinery, warehouse and administrative facilities constructed between 2011 and 2012.
CEO Dennis Lindgren said the appointment marked a key milestone for the company’s US strategy.
“Partnering with Ausenco is a significant step forward for the Shafter Silver project. Their global reputation for delivering capital-efficient and accelerated mining solutions aligns perfectly with our objective to leverage Shafter’s existing infrastructure for a near-term restart,” he said.
“This study will provide a defensible technical foundation required to optimise our capital spend, engagement with key stakeholders (including government and investors) and move rapidly toward becoming a domestic US silver producer, supported by our primary focus to explore and expand the existing high-grade foreign mineral resource estimate of 17.6-million ounces of silver at 289g/t.”
Ausenco’s work will include detailed inspections of mechanical, structural and electrical systems across the crushing, milling, leaching and Merrill-Crowe extraction circuits, verification of asset condition and remaining useful life, and preparation of a restart capital cost estimate.
Black Bear said the restart assessment represents the first phase of a staged development programme, running in parallel with exploration drilling and work to convert the existing 17.6-million-ounce foreign mineral resource estimate to JORC-compliant status. The foreign estimate was prepared in accordance with Canada’s NI 43-101 standard and has not yet been classified as a mineral resource under the JORC Code.
The company also pointed to significantly improved silver market conditions since the project was last operating. Silver prices have risen sharply from below $18/oz at the time of Shafter’s closure in 2013, underpinned by growing industrial demand and what Black Bear described as a persistent structural supply deficit.
Shafter is positioned as a potential near-term source of domestic silver supply at a time when silver has been designated a critical mineral by the US and remains predominantly import-dependent. Black Bear said the restart study also aligns with recent US government initiatives aimed at strengthening domestic critical minerals supply chains and reducing reliance on foreign sources.
