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Silver Lake Resources Hits 500,000 Ounces Of Gold Bullion Production

Silver Lake Resources (ASX: SLR) is one of Australia's premier gold producers, with the company hitting the 500,000 ounce production milestone from its operations since the maiden gold pour in April 2008.

Silver Lake has processed 4.4 million ore tonnes at a blended grade of 3.8g/t gold from multiple underground and open pit feed sources at an average (blended) metallurgical recovery of 94%.

Production was sourced from the company's three processing facilities, being Mount Monger/Lakewood (80%), Randalls (13%) and from the Murchison (7%).

Highlighting the success of Silver Lake at Mount Monger, the company purchased the project in November 2007 when it was on care and maintenance with a resource base of 235,000 ounces of gold and limited mine life.

Les Davis, managing director, commented: "In December 2007, we commenced production from a single ore source at Daisy Milano.

"We have now poured our first 500,000 ounces of gold, grown the resource base to 6.4 million ounces inclusive of 1.7 million ounces of reserve and have 3 mining operations and 3 operating processing facilities with total milling capacity of >3.0Mt of ore per annum.

"We have had a solid start to FY14 producing 96,400 ounces year to date."

Silver Lake's portfolio is extensive in Western Australia, and covers 5000 square kilometres of highly prospective under explored tenements containing gold, silver, copper and zinc.

The company's projects currently host: 6.4 million ounces of gold inclusive of 1.7 million ounces of reserve, 10.5 million ounces of silver and 134,000 tonnes of copper.

Analysis

This is a milestone for Silver Lake, having grown the resource base to 6.4 million ounces inclusive of 1.7 million ounces of reserves. It has also made a solid start to reaching FY14 production guidance as well.

Due to its sustained and increased gold production profile, Silver Lake has attracted large institutional shareholders to its register.

These include Van Eck with 30.4 million (7.0%), Baker Steel with 20.8 million (4.8%), and Sprott Asset Management with 11.1 million (2.5%).

Directors hold 27.9 million shares, or 6.4%.

Silver Lake delivered record production in the September 2013 quarter, with 59,902 ounces produced and group sales totalling 60,910 ounces.

The company's group guidance for the period ending 30 June 2014 is 180,000 to 200,000 ounces of gold.

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