Silver developer Cobar Consolidated Resources Ltd says it has received state government approval to develop what it believes is Australia’s first pure silver and lead mine.
The mine is 80km south of the NSW far western town from which Cobar takes its name.
Cobar says it will now apply for a mining lease and approval of a mine operations plan for the Wonawinta silver project, after the Western Region Joint Regional Planning Panel approved the development on Tuesday.
The Wonawinta project has a projected mine life of between seven to 12 years with plans to commence production in December with shallow open-cut mining.
Australia’s largest silver resource
The mine is Australia’s largest undeveloped silver resource and silver prices are at 31-year highs.
The mine has an inferred resource of 51 million ounces of silver.
Cobar says it plans to produce 2.5 million ounces of silver per annum, which are to be used to produce dore (silver bars).