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Additional information

Additional	Information
Market:	ASX
Sector:	Gold Mining
Epic:	SLR
News:	Latest news
Web Site:	Silver Lake Resources
Other Articles:	31-08-201023-08-201004-08-2010

Silver Lake Resources boosts high grade gold resource by 70% to 2.5m ounces

Gold production and exploration company Silver Lake Resources (ASX: SLR) has reported a June 2010 JORC Resource inventory totalling 17.8 million tonnes at 4.4 g/t Au for 2.5 million ounces, an increase of 70% from the June 2009 inventory.

The company has added over 1 million ounces of gold to its resource inventory during the year after mining 66,700 ounces and expects further encouraging results at its  Mount Monger and Murchison projects.

At Mount Monger in Western Australia there was a total resource of 3.6 million tonnes at 9.4 g/t Au for 1.1 million ounces including a 142% increase in resource at Daisy Milano to 623,700 ounces.

There was a maiden resource at Daisy East totalling 142,600 ounces at 38.7 g/t Au and a 172% increase in resource at Magic to 152,800 ounces along with the North Monger acquisition of 80,300 ounces.

At Murchison, also in WA, there was a total resource of 13.7 million tonnes at 3.0 g/t Au for 1.3 million ounces with maiden resources at Caustons South, Genesis & Exodus totalling 121,000 ounces.

Les Davis, managing director, said “to add over 1 million ounces of gold to our resource inventory during the year after mining 66,700 ounces is a significant outcome and supports our view on the underexplored, highly prospective nature of our Mount Monger Operations and Murchison projects."

"Further encouraging results are expected from our ongoing drilling programmes throughout the year as many of these resources are by no means closed out."

“The immediate implications of the increased resource base at a sustained high grade, are to confirm a mine life at our Mt Monger Operations well beyond 5 years and to make a second production centre in the Murchison more likely than not," Davis added.

The June 2010 resource inventory is calculated after allowing for the previous year’s mining depletion of 66,700 ounces. Silver Lake’s discovery cost continues to be less than A$10 per ounce.

Not all of the recent drilling success has been included in the latest inventory as drilling is ongoing.

A further resource upgrade will be announced in January 2011 to include expanded resources at Magic and Daisy East, maiden resources for Lena South, Leviticus and Numbers in the Murchison, and other resources as defined by our ongoing drilling campaigns over the next six months.

The next six months surface drilling programmes at Mount Monger will mainly be targeting the thick high grade zones intersected at the Magic deposit located 3km south of Daisy which include:

- 11 metres at 59.4 g/t Au from 251 metres (including 1.5 metres at 243 g/t Au);
- 10 metres at 19.1 g/t Au from 52 metres;
- 3 metres at 23.8 g/t Au from 44 metres; and
- 15 metres at 4.7 g/t Au from 272 metres.

The mineralisation at the Magic deposit remains open to the south and at depth. Underground drilling programmes over the next six months will be targeting the northern extent at Daisy East and extensions to Emma, Rosemary and Haoma.

The Moyagee Project contains 35 km of the highly prospective Lena Shear zone. The Lena deposit is located in this shear zone and already has a resource of 820,000 tonnes at 8.5 g/t Au for 224,200 oz.

The company said infill drilling will be undertaken over the next six months at Lena South, Leviticus and Numbers prospects to calculate a maiden resource for each area.

 

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