Silver Drilling Hits 1,586.1 g/t AgEq Beyond Current Resource in Montana

SilverBow Mining Corp. (SBMT:NYSEAmerican) reported assay results from drill holes SBM26-03 and SBM26-04 at its Rainbow Block Project in Butte, Montana, including a high-grade Badger Vein intersection located approximately 125 meters beyond the boundary of the current Inferred Mineral Resource estimate.

Hole SBM26-03 intersected 4.0 meters grading 994.2 grams per tonne silver equivalent (AgEq), consisting of 309.0 g/t silver, 1.85 g/t gold, 9.98% zinc, and 5.75% lead. The interval included 2.3 meters grading 1,586.1 g/t AgEq, with 455.0 g/t silver, 2.76 g/t gold, 17.13% zinc, and 9.71% lead.

The Badger Vein intercept was approximately 125 meters from the intersection reported in SBM26-01 on June 22, 2026. That earlier hole returned 3.7 meters grading 651.0 g/t AgEq, including 102.9 g/t silver, 0.24 g/t gold, 11.23% zinc, and 4.84% lead.

"The 4-meter intercept in SBM26-03 grading 994.2 g/t AgEq, including a 2.3-meter core at 1,586.1 g/t AgEq, is the strongest interval we have drilled to date at the Rainbow Block," Vice President of Exploration Phillip Nickerson, PhD, CPG, said in a company news release. "Beyond the grades themselves, what stands out is that this intercept sits approximately 125 meters, or 400 feet, west of the high-grade intersection in our first hole of the season, SBM26-01, which returned 651.0 g/t AgEq over 3.7 meters."

SBM26-03 also intersected mineralization interpreted as the Unnamed Vein, North Edith May Vein, and North Badger Vein, with all of those intersections outside the current MRE. The company's Phase I drilling has confirmed the westerly extension of the Badger Vein, which historical geological information indicated had been offset by a fault west of the historic Badger Shaft before continuing west and merging with the State Vein.

Hole SBM26-04 intersected several mineralized veins outside the current MRE, including the Badger, State, North State, Poser Fault, Jessie, and Rainbow veins. The strongest interval was in the Jessie Vein, returning 2.0 meters grading 693.1 g/t AgEq, including 61.6 g/t silver, 0.17 g/t gold, 13.77% zinc, and 4.83% lead. The State Vein returned 1.6 meters grading 502.0 g/t AgEq, including 103.8 g/t silver, 0.31 g/t gold, 8.19% zinc, and 2.96% lead.

Poor drilling conditions were encountered in SBM26-04 from 602.6 to 603.8 meters, resulting in no core recovery across the 1.2-meter interval. That interval was followed by 1.4 meters of mineralization from the Rainbow Vein grading 253.2 g/t AgEq. The company said the full extent of the Rainbow Vein intersected in the hole was uncertain because of the poor recovery.

Silver Bow Mining has three surface drill rigs operating at the Rainbow Block, with approximately 13,500 feet of its previously announced 25,000-foot Phase I diamond drilling program completed. The program is designed to test mineralization outside the current MRE, and none of the mineralized intercepts reported from the current drilling program are within the existing resource boundaries.

The Rainbow Block currently hosts an Inferred Mineral Resource of 10.4 million tonnes grading 507.4 g/t AgEq, including 146.7 g/t silver, 1.7 g/t gold, 4.59% zinc, and 1.25% lead. It contains 49.16 million ounces of silver, 0.55 million ounces of gold, 0.47 million tonnes of zinc, and 0.13 million tonnes of lead. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

Silver Market Balanced Industrial Demand With Rate Pressure

FX Empire reported on September 7 that silver had remained within a US$64 to US$68 trading range as higher interest-rate expectations pressured the metal. Christopher Lewis wrote that "the consolidation that we've seen recently between US$64 and US$68 remains in the futures market," while noting that rates had remained "a bit stubborn." He said higher yields had generally created a headwind for silver.

At the same time, Lewis pointed to industrial demand and supply conditions as underlying factors in the market. He wrote, "The supply just isn't growing quickly enough to meet demand," and said the longer-term industrial supply argument had helped keep silver "somewhat firm." His analysis described the market at the time as neutral, with silver trading around its 50-day and 200-day exponential moving averages.

The Motley Fool also examined the silver market on September 7, noting that the metal had declined from a record of more than US$120 per ounce reached in late January. David Jagielski wrote, "The price of silver has been falling sharply this year," after substantial investor buying late the previous year. The article also identified uncertainty surrounding interest rates, elevated stock-market valuations, and broader economic uncertainty as factors affecting investor attention toward precious metals.

Trading Economics' September 8 market summary showed silver at US$65.996 per ounce, down 0.22% for the day but up 61.38% over the previous year. The source described silver as "a widely traded precious metal with both industrial and investment applications" and cited electronics, solar panels, and medical technologies among its industrial uses.

Trading Economics also said silver prices had been influenced by both industrial demand and investor sentiment. Its market summary attributed the latest decline to expectations for higher interest rates and inflation concerns, while noting that investment and hedging demand had remained among the factors affecting precious metals.

Full Weighting Maintained After High-Grade Rainbow Results

Research Capital analyst Stuart McDougall reiterated a Speculative Buy rating and a US$25.60 per share target price in a June 22 research report.

Cantor Fitzgerald analyst Matthew O'Keefe described the Rainbow Block results in a September 1 research report as "Positive." O'Keefe wrote that holes SBM26-03 and SBM26-04 had provided "additional evidence of high-grade polymetallic mineralization within the Badger Vein," including 994.2 g/t AgEq over 4.0 meters, approximately 125 meters beyond the current Inferred Mineral Resource boundary.

O'Keefe also noted that additional veins had been intersected outside the current resource and said of the planned first-half 2027 resource update, "We expect it will successfully expand the high-grade resource."

O'Keefe maintained a Speculative Buy rating and reiterated a US$19.80 per share target price, which represented a 125% target return from the US$8.81 share price cited in the report. The firm identified surface drilling results, underground development and resource drilling progress, an updated resource estimate, metallurgical test work, and delivery of an S-K 1300 Initial Assessment through 2027 as key catalysts.

In a September 2 commentary, Peter Krauth of The Silver Stock Investor described Silver Bow Mining's latest Rainbow Block drill results as "impressive new drill results" and said SBM26-03 had delivered "the strongest interval drilled to date." He also noted that the Badger Vein intercept had been located about 125 meters beyond the current Inferred Resource, which he said had confirmed its "promising westerly extension."

Krauth characterized the results as "Excellent ongoing high-grade silver plus gold and base metals" and said, "I'm really looking forward to the updated resource in H1 2027." He noted that shares had remained up 38% from their July lows and that, at a market capitalization of US$252 million, each AgEq ounce had been valued at US$1.50. Krauth maintained a full weighting and said he viewed the shares as "attractive on weakness." The source did not disclose a formal rating or target price.

Drilling, Underground Access, and Resource Work Set the Next Steps

Silver Bow Mining's surface drilling campaign is expected to continue through 2026. The July 2026 investor presentation described the 25,000-foot program as targeting extensions of known mineralization, while multi-element assays are intended to further define concentrations of Critical Minerals. The September 1 update reported that approximately 13,500 feet of the program had been completed.

The company plans to complete an updated MRE for the Rainbow Block in the first half of 2027. The update is expected to incorporate results from the current drilling program along with historical assay information from drilling and underground sampling by previous operators, subject to compilation, validation, and verification of the historical information.

Silver Bow Mining has completed rehabilitation of the Chief Joseph Portal at the eastern end of the Rainbow Block on the historic Badger State mine property. According to the July investor presentation, the underground decline is designed to provide access for mechanized equipment, ventilation, and underground exploration drilling platforms. The decline is planned to connect with the 400-foot level and eventually reach the 800-foot level, which is planned as the lowest level above the water table.

The Chief Joseph Decline is also planned to provide access to veins for evaluation and mining of a 10,000-ton bulk sample. The sample is intended to test metallurgical performance and the density material separation potential.

Underground drilling at the Rainbow Block is planned to begin in the fourth quarter of 2026. Rehabilitation of the Chief Joseph Portal began in May 2026 and has been completed, re-establishing underground access. Rehabilitation of the Chief Joseph Decline is the next step and is intended to provide infrastructure for underground exploration drilling. The company stated that the steeply dipping nature of the silver-zinc-gold-lead veins makes resource definition drilling most efficient from underground.

Over the next 24 months, planned underground exploration includes drill bays for definition drilling and testing exploration targets adjacent to the current Inferred Mineral Resource estimate, rehabilitation of the Lexington Tunnel, and construction of the Rainbow and Goldsmith declines. Access to Rainbow Block veins is planned through existing historic workings that the company said require minimal rehabilitation for assessment.

The company's exploration plans also extend to the Goldsmith and Great Republic blocks, which it had recently secured with no royalty as of the July presentation. Goldsmith comprises approximately 328 acres of private mineral rights, with veins that are part of the Rainbow vein system and historical production of silver, gold, and zinc. Great Republic comprises approximately 846 acres of private mineral rights, contains multiple vein systems crossing the claim block, and also has historical production of silver, gold, and zinc.

Silver Bow Mining also identified targeted evaluation of manganese, copper, germanium, gallium, and indium among its planned work. Its July presentation described plans to integrate AI and machine learning to analyze and prioritize Anaconda's historical archives, use surface drilling to target extensions of known mineralization, and conduct underground drilling from rehabilitated legacy workings for potential resource-category upgrades. The presentation also identified strategic acquisitions for additional exploration ground and district consolidation among its planned activities.

Ownership and Share Structure¹

17.59% of Silverbow is held by Institutions. Management and insiders own 5.92% while strategic entities hold 7.31%. The rest is retail. 

Silverbow's market cap is US$251.88 million with 29.53 million shares outstanding. The company's 52-week range is US$8.33 - US$11.50.

Frequently Asked Questions

What were Silver Bow Mining's latest drill results at the Rainbow Block Project?

Silver Bow Mining Corp. reported that drill hole SBM26-03 intersected 4.0 meters grading 994.2 g/t silver equivalent (AgEq) at the Badger Vein. The interval included 2.3 meters grading 1,586.1 g/t AgEq. The company described the 4.0-meter interval as its strongest interval drilled to date at the Rainbow Block

How high were the silver grades in Silver Bow Mining's SBM26-03 drill hole?

The 4.0-meter Badger Vein interval in SBM26-03 contained 309.0 g/t silver, 1.85 g/t gold, 9.98% zinc, and 5.75% lead. Within that interval, 2.3 meters contained 455.0 g/t silver, 2.76 g/t gold, 17.13% zinc, and 9.71% lead, for a calculated grade of 1,586.1 g/t AgEq.

Did Silver Bow Mining find mineralization outside the Rainbow Block resource?

Yes. The Badger Vein intercept in SBM26-03 was approximately 125 meters beyond the boundary of the current Inferred Mineral Resource estimate. Silver Bow Mining stated that none of the mineralized intercepts reported from its current drill program were located within the boundaries of the current MRE.

What did Silver Bow Mining find at the Badger Vein in Montana?

SBM26-03 intersected 4.0 meters grading 994.2 g/t AgEq at the Badger Vein, including 2.3 meters grading 1,586.1 g/t AgEq. The intercept was approximately 125 meters west of the Badger Vein intersection in SBM26-01, which returned 3.7 meters grading 651.0 g/t AgEq. Silver Bow Mining said its Phase I drilling had confirmed the westerly extension of the Badger Vein.

What other high-grade silver intersections did Silver Bow Mining report?

Hole SBM26-04 intersected 2.0 meters grading 693.1 g/t AgEq at the Jessie Vein, including 61.6 g/t silver, 0.17 g/t gold, 13.77% zinc, and 4.83% lead. The State Vein returned 1.6 meters grading 502.0 g/t AgEq, including 103.8 g/t silver, 0.31 g/t gold, 8.19% zinc, and 2.96% lead.

How large is the Rainbow Block mineral resource in Butte, Montana?

The Rainbow Block hosts an Inferred Mineral Resource of 10.4 million tonnes grading 507.4 g/t AgEq. It contains 49.16 million ounces of silver, 0.55 million ounces of gold, 0.47 million tonnes of zinc, and 0.13 million tonnes of lead. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

How much drilling has Silver Bow Mining completed at the Rainbow Block?

Silver Bow Mining reported approximately 13,500 feet completed from its previously announced 25,000-foot Phase I diamond drilling program. Three surface drill rigs were operating at the Rainbow Block, and the surface drilling campaign was expected to continue through 2026.

When will Silver Bow Mining update the Rainbow Block mineral resource estimate?

Silver Bow Mining planned to complete an updated Mineral Resource estimate for the Rainbow Block in the first half of 2027. The planned update was expected to incorporate results from the current drilling program and historical assay information from drilling and underground sampling by previous operators, subject to the necessary compilation, validation, and verification.

When is underground drilling expected to begin at the Rainbow Block?

According to Silver Bow Mining's July investor presentation, underground drilling was planned to begin in the fourth quarter of 2026. Rehabilitation of the Chief Joseph Portal began in 2026 and has been completed, re-establishing underground access. Rehabilitation of the Chief Joseph Decline is the next step and is intended to provide drill stations and infrastructure for underground exploration drilling.

What additional underground exploration work has Silver Bow Mining planned?

The company's planned underground exploration over the next 24 months included drill bays for definition drilling and testing targets adjacent to the current Inferred Mineral Resource estimate, rehabilitation of the Lexington Tunnel, and construction of the Rainbow and Goldsmith declines.

What did third-party Peter Krauth say about Silver Bow Mining?

In his September 2 commentary, Krauth described the latest Rainbow Block results as "impressive new drill results" and characterized the drilling as "Excellent ongoing high-grade silver plus gold and base metals." He said he maintained a full weighting and viewed the shares as "attractive on weakness." He also said he was "really looking forward to the updated resource in H1 2027."

How has the silver price performed over the past year?

Trading Economics reported silver at US$65.996 per ounce on September 8, with the metal up 61.38% over the previous year. The source described silver as a precious metal with both industrial and investment applications, including uses in electronics, solar panels and medical technologies.