Proactive Investor's  Instablog

Silver Lake Resources (ASX: SLR) has reached a production milestone at the Mount Monger Operations, producing the first 250,000 ounces of gold bullion.

This has been achieved through the processing of 1.3 million tonnes of ore at a blended grade of 6.4 grams per tonne gold from underground and open pit feed sources.

A blended metallurgical recovery rate of 93.5% was achieved. Ore from Mount Monger is processed through Silver Lake's Lakewood Gold Processing Facility.

Silver Lake managing director Les Davis said the milestone was "significant" for both the company and its shareholders.

"When we purchased the Mount Monger project in November 2007 it was on care and maintenance with a resource base of 235,000 ounces of gold and limited mine life," Davis said.

"We have now poured our first 250,000 ounces of gold, grown the resource base to 1.7 million ounces and we are producing from four underground mines and one open pit mine with an expected mine life of 10 years.

"Furthermore, we have expanded our Lakewood Gold Processing Facility from 300,000 tonnes per annum to 900,000 tonnes per annum since acquiring the facility in November 2007."

In commemoration of the milestone, Silver Lake has commissioned the production of 2.5 ounce, 5 ounce and 10 ounce gold bars from the Perth Mint, which shareholders can purchase.

These bars will bear the company logo on one side and an authenticity stamp from the Perth Mint on the other.

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