Silver Lake Resources Uncovers Up To 50.6g/T Gold At Mount Monger

Dec. 12, 2012 7:45 PM ET
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Silver Lake Resources (ASX: SLR) has discovered more high grade gold at its Mount Monger operations in Western Australia with one intercept returning 1 metre at 50.6 grams per tonne gold, which was returned from the deepest hole to date.

The company has been exploring the down dip extensions of the Lorna Doone and Spinifex deposits with diamond drilling delivering a number of high grade intercepts from six holes.

Highlights are 3 metres at 17.5g/t gold, including 1 metre at 45.9g/t gold; 1.5 metres at 36.2g/t gold, including 1 metre at 50.6g/t gold; 7 metres at 6.6g/t gold, including 1.3 metres at 23.3g/t gold; and 1.7 metres at 21.8g/t gold, including 1.1 metres at 30.6g/t gold.

The intercept of 1.5 metres at 36.2g/t gold, including 1 metre at 50.6g/t gold, was returned from the deepest hole to date which intercepted the high grade mineralisation at a vertical depth of about 400 metres below the previously mined open pits.

Importantly, these new results indicate the potential for the two previously mined open pits to become one large open pit followed by an underground mine.

The new drill holes are outside of the current resource at Lorna Doone, with mineralisation remaining open to the south and at depth.

The Lorna Doone and Spinifex deposits are located about 2 kilometres south east of Daisy Milano and were mined as separate open pit deposits in 1993 with production of 24,800 ounces at 2.52g/t.

Silver Lake is targeting to increase production from the Mount Monger Operations to 200,000 ounces per annum by 2014 via mining from multiple underground and open pit ore sources.

The Mount Monger Operations have a current JORC resource of 7.1 million tonnes at 7.4g/t for 1.7 million ounces of contained gold.

The Lorna Doone and Spinifex deposits are outside of current base case production plan at Mount Monger.

Next Steps

Silver Lake is now planning to undertake metallurgical test work and infill drilling.

The company will also work on updating the resource model and resource inventory, and undertake a mining study.

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