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  • Silver Lake Resources Delivers Record Gold Production For September Quarter 0 comments
    Oct 25, 2013 2:12 AM

    Silver Lake Resources (ASX: SLR) has once again delivered a quarterly gold production record, with 59,902 ounces produced in the three months to September 2013, with group sales totalling 60,910 ounces.

    Guidance for production for year ending 30 June 2014 remains unchanged at 180,000 to 200,000 ounces of gold.

    During the quarter Silver Lake reduced debt from A$52.0 million to A$20.0 million, and has cash & bullion on hand totalling A$25.6 million.

    Production breakdown

    The break down in production has the Mount Monger Operations has mill production of 46,572 ounces, an 8% increase on previous quarter. The mine production of 40,691 ounces delivered a 20% jump over the same period.

    At the Murchison Gold Operations, mill production was 13,330 ounces, or 7% stronger than the previous quarter. Mine production was 15,941 ounces, climbing 52% over the same period.

    Mount Monger: Gold sales & unaudited all in sustaining cost

    Quarterly gold sales from Mount Monger Operations totalled 47,457 oz. Unaudited all in sustaining cash costs (before non-cash items) for the quarter was A$1,030 ounces compared to A$1,090 ounces in the previous quarter.

    Group operations

    Ore mined for the quarter totalled 657,704 tonnes resulting in contained gold in ore production of 56,632 ounces, a 28% increase on the previous quarter.

    Ore milled for the quarter totalled 821,206 tonnes at a blended grade of 2.4 g/t Au for 59,902 recovered ounces, an 8% increase on the previous quarter.

    Unprocessed ore stocks available for mill feed at the end of the quarter are ~1.7 million tonnes containing ~71,000 ounces of gold.

    Gold bullion sold for the quarter was 60,910 ounces at an average realised price of A$1,450 oz for A$88.3 million revenue.

    Bullion refined and not sold at the end of the quarter totalled 7,072 ounces. Silver Lake had no hedging in place at the end of the quarter.

    Guidance

    Silver Lake said that group guidance with prevailing gold prices for the period ending 30 June 2014 remains unchanged at 180,000 to 200,000 ounces of gold.

    Silver Lake said that group guidance with prevailing gold prices for the period ending 30 June 2014 remains unchanged at 180,000 to 200,000 ounces of gold.

    Given the September 2013 quarter production, guidance will be reviewed at the end of the December 2013 quarter however, the focus remains on maximising cashflow.

    Guidance for Mount Monger Operations remains unchanged at 120,000 to 130,000 ounces of gold. The Lakewood & Randalls mills will be fed with underground ore from the Daisy Complex, open pit ore from the Maxwells deposit and continued processing of surface stockpiles.

    Small quantities of ore will also be available from Cock-eyed Bob which is being mined to obtain further geological knowledge of banded iron formation deposits in the region. Mining at Cock-eyed Bob is not yet at a commercial point but is cash neutral.

    Guidance for the Murchison Gold Operations remains unchanged at 60,000 to 70,000 ounces of gold.

    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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