Silver Lake Resources (ASX: SLR) has discovered near surface zinc grades of up to 34.6% zinc during drilling at Mount Eelya within the Eelya Complex, part of the Murchison project in Western Australia.
Mount Eelya is located about 6 kilometres north of the Hollandaire copper-gold deposit, where Silver Lake recently intercepted copper grades of up to 4.5%.
Highlight assays from the $20 million drilling program currently underway include 7 metres at 9.9% zinc, 1.2% copper, 0.3g/t gold and 12g/t silver from 29 metres, including 1.3 metres at 34.6% zinc from 29.6 metres; and 2.3 metres at 9.9% zinc, 0.5% copper and 17g/t silver from 19 metres.
The potential for a 10 kilometre long base metal/gold corridor is unfolding.
Les Davis, managing director, commented: "We are encouraged with the base metal and gold mineralisation intersected along a 10 kilometre trend zone from Hollandaire in the south to Colonel in the north.
"This trend zone also hosts the previously mined Rapier gold deposit and now the recent drilling has intersected near surface high grade zinc at Mount Eelya.
"Limited drilling to date is encouraging and the base metal and gold potential within this trend is unfolding."
Based on limited information to date the geology appears different to the Hollandaire deposit.
Further drilling is planned upon completion of down hole geophysics.
Silver Lake is developing a second mining operation with multiple mines feeding a central processing facility.
A 1.2 million tonne per annum mill has been acquired for this project and production is expected to begin in the March 2013 quarter.
At the Eelya Complex, part of the Murchison project, a high grade copper discovery has been made at Hollandaire.
The Hollandaire deposit contains copper, gold, silver and zinc with grades up to 45% copper, 5.5g/t gold and 256g/t silver.
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.