Abbreviations

A$ Australian dollars
ASIC Australian Securities and Investments Commission
ASX  (The) Australian Stock Exchange Ltd
As  Arsenic chemical symbol
Ag  Silver chemical symbol
Au  Gold chemical symbol
AusIMM The Australasian Institute of Mining and Metallurgy
BSc Bachelor of Science
CHESS Corporate Holdings Exchange for Securities Services 
Cu Copper chemical symbol
DPI New South Wales Department of Primary Industries
EL Granted Exploration Licence
ELA Exploration Licence Application
ERA Earth Resources Australia Pty Ltd
g/t grams per tonne
JORC Joint Ore Reserve Committee
LCD Liquid Crystal Display
Ma Millions of years (a=annum)
Moz Millions of ounces (1oz = 31.1g)
Mt Millions of tonnes
oz ounce (equivalent to 31.1 grams)
PDP Plasma Display Panel
t tonne - 1,000 kgs or one metric ton

Glossary

ASTC Settlement Rules
refers to the settlement rules of ASX Settlement and Transfer Corporation Pty Limited

ASX Listing Rules
refers to the listing rules of the ASX

the Board
refers to the board of Directors of the Company

CHESS
means the clearing-house electronic sub-register system operated by ASX Settlement and Transfer Corporation Pty Limited

Closing Date
means 8 December 2006

the Company
means Silver Mines Limited ACN 107 452 942

Director's Options
refers to the options issued to Directors of the Company, as described in Chapter 10 of this Replacement Prospectus

Opening Date
means 14 November 2006

Purchase Agreements
refers to the purchase agreements entered into by the company for its acquisition of exploration licences 5674, 5937, 6114, 6239 and 6512, as described in Chapter 10 of this Replacement Prospectus

Replacement Prospectus
refers to this Replacement Prospectus lodged with ASIC on 6 November 2006

Seed attached options
refers to the options issued to seed capitalists, as described in Chapter 10 of this Replacement Prospectus

SML
means Silver Mines Limited ACN 107 452 942

Underwriter
means Martin Place Securities Pty Limited ACN 094 927 947

Underwriting Agreement
refers to the underwriting agreement between the Company and the Underwriter, as described in Chapter 10 of this Replacement Prospectus

 

Technical Terms

Compiled principally from A Dictionary of Mining, Mineral and Related Terms, US Department of the Interior, 1968.

acanthite a silver sulphide mineral (Ag2S) which contains 87% silver
   
acid volcanic a volcanic igneous rock containing 66% or more of free or combined silica
   
adamellite a quartz-bearing coarse grained intrusive igneous rock similar to granite
   
andesite a dark-coloured basic volcanic igneous rock
   
anomaly a distinctive local variation in value or grade
   
aplite a pale coloured igneous dyke-rock of granitic composition but finer grained
   
arenite a consolidated sedimentary rock having the texture of sand
   
arsenopyrite a tin-white sulphide of arsenic and iron, FeAsS
   
azimuth direction - eg to which a non-vertical drill hole is inclined
   
base metals any of the non-precious metals
   
bornite sulphide of copper and iron (Cu5FeS4) - a valuable copper ore
   
bournonite a sulphide of lead, antimony and copper
   
bulk-tonnage ore deposits whose relatively low grade is compensated by large tonnages
   
calcite calcium carbonate - a common gangue mineral
   
carbonate a compound containing the acid radical of carbonic acid (CO3) - eg calcite
   
cerussite a lead carbonate mineral (PbCO3)
   
chalcopyrite a sulphide of copper and iron (CuFeS2) - an important ore of copper
   
clastic a rock composed of fragments of other rocks
   
country rock the barren rock traversed by or adjacent to an ore deposit
   
diamond drilling core drilling using a diamond-encrusted bit
   
DIGS database system (Digital Imaging of Geologic System) by which the NSW Department of Primary Industries (Mineral Resources) delivers exploration and geoscience information
   
dip the angle at which a feature is inclined from the horizontal; strike (q.v.) is a horizontal line at right angles to the dip
   
DPI The NSW Department of Primary Industries which now incorporates the former Department of Mineral Resources (Mines Department)
   
drag fold any fold that is a subsidiary part of a larger fold
   
dyke a discordant body of igneous rock injected into a fissure when molten, and which cross-cuts the structure of the host country rock
   
en echelon parallel but offset structural features (eg like roof tiles when viewed from the side)
   
ferruginised enriched in iron
   
fold belt a regionally large zone of folded rocks
   
galena sulphide of lead which may also contain up to 1% silver as the isomorphous silver sulphide, argentite
   
gangue unwanted minerals - usually non-metallic such as quartz or calcite - associated with ore
   
gm/cc grams per cubic centimetre - a measure of density or specific gravity
   
gossan(ous) an iron-rich deposit or capping on rocks that are pyrite-rich granite a quartz-rich coarse grained intrusive igneous rock
   
granitoid a rock having the texture of a granite; a granite-like rock
   
host-rock the rock containing a mineral deposit (wallrock, country rock)
   
hydrothermal pertaining to hot, water-rich solutions emanating from molten igneous material
   
induced an electrical geophysical procedure polarisation (IP)
   
intrusive molten igneous rocks injected below (as opposed to intrusion at) the earth's surface
   
jamesonite a lead-iron-antimony sulphide, sometimes with a small amount of copper and zinc
   
JORC code a set of guidelines for the reporting of mineral resources and reserves
   
leucogranite pale-coloured granite typified by white mica
   
limonite a yellowish oxide of iron
   
lode a fissure in country rock filled with mineral; usually applied to metalliferous deposits
   
Mesozoic an era of geological time from 245 to 65 million years ago ' literally "middle life"
   
metasediments a partially metamorphosed (altered) sedimentary rock
   
metasomatism a replacement process by which one mineral is replaced by another of different chemical composition
   
multispectral comprising a range of wavelengths of electromagnetic energy
   
one-minute units the area defined by one minute of latitude by one minute of longitude - approximately 3 square kilometres in NSW, becoming smaller to the south
   
orogen orogeny is the geological process of mountain building resulting from plate-tectonic motions; an orogen is the body of rocks that comprise a suture zone resulting from this process
   
pelite a general term for clastic sedimentary rocks composed of clay-sized (very fine) particles
   
percussion originally a drilling method employing a string of drilling
   
drilling tools raised and lowered by a cable, but now also applying to air-hammer drilling
   
Permian a period in geological history from about 286 to 248 million years from the present
   
plane table a simple surveying procedure used for mapping
   
plunge also called pitch or rake when applied to ore bodies, this is the angle between a horizontal plane and the line of maximum elongation of the body
   
porphyry an igneous rock in which coarser crystals are scattered though a finer groundmass
   
ppm parts per million (equivalent to one gram per tonne)
   
precious metal the relatively scarce and valuable metals such as gold, silver and the platinum group metals
   
pyrite sulphide of iron (FeS2), also known as "fools gold"
   
pyrrhotite a magnetic sulphide of iron
   
radiometric elating to the measurement of nuclear decay of naturally occurring radioactive isotopes; airborne radiometric surveys measure gamma radiation from potassium, thorium and uranium, and are useful for geological mapping
   
RC drilling reverse-circulation drilling - the circulation of the drilling fluid down the outside of the drillrods, and upwards inside the rods
   
reef a lode or vein, particularly applying to quartz outcrops
   
rhyodacite an intermediate igneous rock, the extrusive equivalent of a granodiorite
   
scorodite a green to brownish iron-arsenic mineral
   
sericite a white mica similar (or identical) to muscovite
   
shear(s) a zone of failure in rocks caused by a shearing motion
   
shoot (ore) an elongated body of ore
   
sphalerite zinc sulphide (ZnS) - an important ore of zinc
   
spontaneous an electrical geophysical procedure (also called self potential (SP) potential)
   
stannite a copper-iron-tin (and sometimes zinc) mineral associated with tin-bearing veins
   
stibnite antimony sulphide (Sb2S3), a lead-grey mineral sometimes containing silver and gold
   
stope an excavation from which ore has been extracted
   
strike a horizontal line at right angles to the dip (q.v.)
   
submeridional approximately paralleling meridians of longitude - i.e. more or less north-south
   
sulphide(s) a compound of sulphur with a range of elements; in the context of mining, the term usually applied to metallic sulphides
   
tetrahedrite a copper-antimony-arsenic sulphide mineral which may also contain silver, zinc, iron or mercury as part-replacement for the copper
   
Trassic the first period of the Mesozoic Era (q.v.), from 248 to 206 million years ago
   
Turam geophysical
survey
a geophysical survey comprising electromagnetic methods
   
underlay a shaft sunk in the footwall (lower side) of an ore body, and following its dip
   
wallrock country rock (q.v.) immediately adjacent to an orebody
   
water table the upper limit, or surface of groundwater; the level below which rocks are permanently saturated with water
   
winze a vertical or inclined opening connecting two levels in a mine, constructed from the top down; when constructed from the bottom up, the opening is known as a raise