en.Wedoany.com Reported - The Montana Department of Environmental Quality has issued Amendment 2 Authorization to Exploration License No. 00857 to Silver Bow Mining, allowing all surface and underground exploration activities at the Rainbow Block project. The authorization took effect on May 18, 2026, after Silver Bow Mining posted a $2,188,039 reclamation performance bond, and MT DEQ completed the final environmental assessment on May 8, 2026.
Chairman and CEO Travis Naugle stated in a company press release that receiving the authorization is a significant milestone, as the company has completed a comprehensive environmental review and met regulatory requirements, now enabling the next phase of exploration at Rainbow Block. Naugle also noted that the regulatory process confirmed the soundness of the exploration plan and commitment to responsible operations, with the company cooperating constructively with MT DEQ throughout the review process.
Surface drilling at Rainbow Block has already been underway under Amendment 1 approved by MT DEQ on October 4, 2021, with the company conducting drilling at the Missoula and Badger sites. AMD2 adds seven new surface drill platform locations and authorizes development of the Rainbow Decline, including a new portal and approximately 6,000 feet of underground development work connecting to the existing Lexington mine shaft at a depth of 400 feet.
Silver Bow Mining completed its IPO on the New York Stock Exchange American on April 30, 2026, under the ticker symbol SBMT. On May 4, 2026, the company announced the start of surface drilling at Rainbow Block under AMD1, with the project expected to total approximately 25,000 feet. On May 12, 2026, the company signed a contract with MES Mining, a division of Mining & Environmental Services LLC, to rehabilitate and modernize the existing Chief Joseph portal and underground ramp. MES is mobilizing equipment and materials, with rehabilitation work expected to begin in June.
In the silver market, a team of Bank of America analysts led by Michael Widmer noted in a May 29 report that while a rise in gold could again push silver above $100 per ounce, silver is unlikely to sustainably outperform due to slowing underlying demand. The report stated that after reaching $120 per ounce earlier this year, silver has fallen back below $75, and solar photovoltaic manufacturers, facing significant margin pressure, are working to remove silver from their products. Although demand for silver from other industries has increased, the increments are too small to significantly boost industrial demand.
Silver market data on June 1 showed the metal trading at $76.64 per ounce, up 128.22% over the past 11 months and 168.08% over the past four years. On the same day, the Multi Commodity Exchange launched a Silver 100 futures contract, allowing exposure to silver in sizes as small as 100 grams. MCX Managing Director and CEO Praveena Rai stated that the contract helps Indian silver industry companies protect against price fluctuations, allowing local jewelry businesses to hedge or deliver quantities that better match inventory needs.
Research Capital analyst Stuart McDougall initiated coverage of Silver Bow Mining on May 27 with a speculative buy rating and a target price of $25.60 per share, calling it a "rare opportunity in a premier mining district." The Rainbow Block project contains 49 million ounces of silver, 1.05 billion pounds of zinc, 287 million pounds of lead, and 550,000 ounces of gold, with a resource of 10 million tonnes, and mineralization still has potential for expansion through further drilling.
Cantor Fitzgerald analysts Matthew O'Keefe and Nicholas Lobo initiated coverage on May 27 with a speculative buy rating and a target price of $19.80 per share. The analysts noted that Silver Bow focuses on silver polymetallic targets in Butte, Montana, and has established a high-grade resource of 125.5 million ounces of silver equivalent. The exploration program includes surface and underground drilling as well as underground development. The Rainbow deposit has an inferred resource of 125.5 million ounces AgEq at an average grade of 375 g/t AgEq, with significant exploration potential.
Correspondent Chen Lin wrote on May 28 that Silver Bow Mining is "the new silver kid in town" following its recent IPO, which raised approximately $60 million at $11.50 per share. Insiders have been buying shares, drilling is underway, and results are expected soon.
The Rainbow Decline portal authorized under AMD2 measures 16 feet by 15 feet, allowing for the construction of up to seven new drill platforms and up to 53 surface core holes totaling approximately 102,000 feet, with individual holes reaching depths of up to 7,000 feet. The company may conduct underground drilling within the Rainbow Decline to support mineral resource definition, stockpile up to 10,000 tonnes of mineralized material for bulk metallurgical testing, and excavate and stockpile up to 150,000 cubic yards of development rock at five surface stockpile sites. Approved activities may disturb approximately 11.95 acres, all located on previously disturbed private land. Exploration activities are scheduled for completion by December 31, 2029, with reclamation activities to be completed no later than December 31, 2031.
Silver Bow Mining stated that information generated from AMD2 activities is expected to support ongoing geological modeling, metallurgical testing, engineering studies, and future project evaluations. The company noted that the Rainbow Block project remains in the exploration stage, with no mineral reserves identified or economic feasibility demonstrated. The company has a market capitalization of $295.29 million, with 29.53 million shares outstanding, a 52-week price range of $8.33 to $11.50 per share. Institutions hold 8.76%, management and insiders hold 5.66%, strategic entities hold 7.31%, and the remainder is held by retail investors.
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