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Silver Lake Resources Acquires Mount Monger Stake From Newcrest

Silver Lake Resources (ASX:SLR) is acquiring the remaining 15% interest in the Mount Monger joint venture in Western Australia from Newcrest Mining (ASX:NCM) for $1.52 million.

This gives the company full control over the Majestic and Imperial projects located 35 kilometres southeast of Kalgoorlie that have total Resources of 250,300 ounces of gold.

A plan is in place to drill test to the west of the Imperial deposit.

Re-interpretation of previous geophysical work suggests that there is possibly another mineralised structure in the hangingwall of the Imperial deposit.

Silver Lake is performing mining method and optimisation studies for both the Majestic and Imperial deposits.

The consideration is payable in two tranches of $1,027,000 and $500,000 on completion, which is expected on 5 December 2014.

Majestic & Imperial Project

The Majestic and Imperial deposits were discovered in 2012 and comprise 22 tenements with an approximate area of 3700 hectares.

Primary gold mineralisation at the Majestic/Imperial deposit is associated with north-south trending west dipping brittle fracturing of the host granodiorite.

Some mineralisation is also associated with northwest trending, southwest dipping planes of ductile foliation within the granodiorite.

Mineralisation is usually associated with silica, sericite, albite, alteration and/or quartz veining containing fine grained chalcopyrite and pyrite.

Low grade mineralisation is also found with the north-south trending porphyries. However, the contact between the foliated porphyries and the dominantly massive granodiorite is occasionally the site of local high grade mineralisation associated with dilatational quartz veining, and strong silica sericite alteration.

Some high grade mineralisation is hosted in strongly sheared biotite rich melanocratic tonalites and porphyries with fine blebs of chalcopyrite and pyrite stringers.

Primary mineralisation is characterised by elevated copper, bismuth, gold and silver grades.

Extensive metallurgical test work completed to date indicates the chalcopyrite is expected to have no material detrimental impact on processing the Majestic/Imperial ores through the Randall's Mill.

Mount Monger Operations

Silver Lake's Mount Monger operations produced 37,194 ounces of gold in the June 2014 quarter and sold 172,838 ounces of gold in the 2013/14 financial year.

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