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  • Silver Lake Resources Intercepts High Grade Copper And Gold At Hollandaire 0 comments
    May 21, 2013 7:38 PM

    Silver Lake Resources (ASX:SLR) has logged further thick, high grade copper and gold intercepts from infill drilling at its Hollandaire deposit within the Eelya Complex, part of the Murchison gold project located 600 kilometres north of Perth.

    Significantly, the current resource at Hollandaire could add a copper, gold and silver concentrate revenue stream to the Murchison gold project, thereby reducing all-in-sustaining cash costs at the gold operation.

    The results from the Hollandaire pre-feasibility study are expected in late June 2013.

    The nearby gold mill has been constructed with the possible addition of a concentrate circuit in mind. The crusher already has excess capacity and provision has been made for the ready addition of a grinding and flotation circuit.

    The Hollandaire inferred resource of 2.8 million tonnes at 1.6% copper, 0.4 g/t gold and 5 g/t silver with the supergene zone averaging 4.7% copper sits below gold mineralisation that extends from the surface down to 50 vertical metres depth.

    Silver Lake commenced drilling at the Eelya Complex in September 2011 and since then mineralisation has been intercepted along a 10 kilometre mineralised corridor including Hollandaire, Rapier, Mount Eelya and Colonel.

    Drill results

    Today's infill drilling results from the recent 100 hole RC infill drilling campaign include:

    - 12.0 metres at 8.7% copper including 5.0 metres at 3.1 g/t gold from 88 metres;
    - 12.0 metres at 8.1% Cu including 5.0 metres at 2.1 g/t Au from 73 metres;
    - 10.0 metres at 8.8% Cu & 2.8 g/t Au from 138 metres;
    - 8.0 metres at 10.8% Cu including 4.0 metres at 2.0 g/t Au from 110 metres;
    - 17.0 metres at 5.9% Cu from 95 metres;
    - 12.0 metres at 4.4% Cu including 4.0 metres at 3.2 g/t Au from 136 metres; and

    The mineralisation remains open to the southwest and at depth.

    Metallurgical test work results are due by the end of May 2013. Once these results are received, expressions of interest in respect of concentrate product will be sought in order to firm up commercial terms.

    Silver Lake's Managing Director, Les Davis said: "We are confident that the current resource at Hollandaire is the catalyst to add a copper, gold and silver concentrate revenue stream to our Murchison gold project."

    "The Eelya Complex, beginning with Hollandaire, has the potential to add significant value to our Murchison gold project. The result is expanded gold production with copper and other base metal credits which can be processed at a marginal capital and marginal operating cost at the nearby gold mill.

    "As an example, on a by-product credit basis, every A$10 million per annum of margin realised from the base metals over 100,000 ounces of gold produced equates to A$100 per ounce lower all in sustaining cash cost at the current gold operations," Davis added.

    Hollandaire Copper Gold Deposit

    Hollandaire is a tabular stratabound felsites hosted VMS deposit and is currently subject to a pre-feasibility study. The felsite is hosted within a thick sequence of mafic rocks which show typical packages of chlorite and silica alteration similar to other known VMS deposits. The mineralisation forms a moderately dipping zone of massive sulphide 10-15 metres thick which plunges to the south west.

    Mineralisation is dominantly supergene chalcocite in the oxidised zones and chalcopyrite in the primary zone. The deposit is underlain in part with disseminated sulphides and a semi-concordant stockwork of sulphide and silicate veining.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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