What's Happening?
Black Bear Minerals has awarded Ausenco the next phase of operational restart studies for its Shafter Silver Project located in Texas. This phase will focus on technical de-risking, Bankable Feasibility
Studies, process trade-off studies, metallurgical test work, and mine planning. Additionally, environmental and preliminary restart execution planning will be part of the expanded scope. The studies aim to refine the restart plan and costs identified in previous dilapidation studies, leveraging the project's existing infrastructure valued at approximately $150 million. Ausenco has also received a non-binding letter of support from Export Finance Australia for potential financing activities related to the project, contingent upon satisfactory due diligence and internal approvals.
Why It's Important?
The engagement of Ausenco for the Shafter Silver Project is a significant step in advancing Black Bear Minerals' strategy for a capital-efficient restart. This project is crucial for the U.S. as it aligns with Western government priorities to secure domestic supply chains for critical metals, including silver, which are essential for defense, industrial, semiconductor, and energy transition sectors. The support from Export Finance Australia underscores the role of Australian expertise in bolstering U.S. critical minerals development. The project's success could enhance the U.S.'s self-sufficiency in critical minerals, reducing reliance on foreign sources and potentially stabilizing supply chains.
What's Next?
The studies will focus on optimizing process flowsheets, assessing ore variability, and planning mine operations. They will also address infrastructure reuse, refurbishment strategies, and environmental reviews. The work program aims to support a staged brownfield restart strategy, minimizing capital intensity and expediting development timelines by maximizing the reuse of existing infrastructure. The successful completion of these studies could lead to a more efficient and timely restart of the Shafter Silver Project, potentially boosting local economies and contributing to the U.S.'s strategic mineral reserves.
