Silver Lake Resources' (ASX:SLR) Mount Monger operations in Western Australia has out-performed expectations with gold sales for the 2014 financial year totalling 172,838 ounces, exceeding guidance of 160,000 to 170,000 ounces.
Full year gold sales for the group totalled 217,349 ounces which included sales from the Murchison Gold Operation of 44,511 ounces.
The Murchison Gold Operation will be placed on care & maintenance in July 2014 once the gold in circuit has been recovered.
Mount Monger Operations
The company advised that as from July 2014, all available ore sources will be processed at the Randalls Mill located 15 kilometres southeast of the Daisy Complex.
This maximises head grade at the higher throughput Randalls Mill and reduces unit cost per tonne milled and transport costs compared to processing at Lakewood Mill
Once the gold in circuit has been stripped from Lakewood Mill in July 2014, the mill will be placed on care and maintenance.
The ongoing cost of placing the mill on care & maintenance is approximately $40k per month.
Silver Lake has received a number of unsolicited expressions of interest to either toll treat through or for outright purchase of the Lakewood Mill.
A review will be conducted to assess these options and to identify additional interested parties. The outcome of this review is expected by the end of the September 2014 quarter.
Silver Lake is in the process of finalising month end and FY15 budget processes and further details will be available in the forthcoming June 2014 quarterly report.
The company is reviewing multiple near term options to develop Mount Monger, a high margin operation located 50 kilometres southeast of Kalgoorlie in Western Australia's Eastern Goldfields district.
- The Wombola Dam open pit;
- Majestic open pit followed by Imperial underground mine;
- Expanded capacity from Cock-eyed Bob underground mine;
- Maxwells underground mine;
- Upper areas to the east and west of Daisy Milano;
- Lorna Doone open pit; and
- Magic underground mine.
These deposits have work programs in place to advance towards production and are in various stages of evaluation.
Silver Lake's land position in Western Australia covers 5,000 square kilometres of highly prospective under explored tenements containing gold, silver, copper & zinc.
It currently has JORC Resources and JORC Ore Reserves containing:
- 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.
That Silver Lake Resources has produced 172,838 ounces of gold at Mount Monger Operations - above its guidance of 160,000 to 170,000 ounces - for the 2014 financial year underlies the value of the project.
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