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Silver Lake Resources Set For First Gold Pour From Murchison Project In February 2013

Silver Lake Resources (ASX: SLR) is targeting a first gold pour from the Murchison gold project in Western Australia, its second gold mining operation, in mid-February 2013.

The company has made further progress in its development with the 1.2 million tonne per annum processing facility scope 90% complete and commissioning of the power station underway.

Dry commissioning of the crushing circuit will begin this week followed by sequential wet commissioning of the mill, other key componentry and the carbon in leach circuit in January 2013.

Procurement of stores, insurance spares and other consumables is well advanced.

Existing surface stockpiles, outside of the current resource, totalling 190,000 tonnes at 1 gram per tonne (g/t) for 6,000 contained gold ounces have been identified and are being moved to the run of mine stockpile.

Some of this material will be used for mill feed during the commissioning period followed by feeding of the higher grade open pit ores.

The first gold pour is set to occur after allowing for a build-up of gold in circuit stocks.

The remaining construction requirements for the processing facility are being completed concurrently with the commissioning activities, and following practical completion the project will be handed over to the operations team who will progressively transition from commissioning to full scale operations.

Les Davis, managing director, commented: "We are looking forward to commissioning the Murchison gold project, bringing it into production and ramping up to 100,000 ounce per annum rates on time and in line with budget.

In the Murchison, Silver Lake is developing a second gold mining operation with multiple mines feeding a central processing facility.

The Murchison gold project has a current resource of 25.3 million tonnes at 2.8g/t for 1.9 million contained gold ounces.

Production is expected to begin in the March 2013 quarter ramping up to 100,000 ounces per annum in 2014.

The base case production plan has ore being sourced from 14 open pit and four underground mines at various stages over an eight to 10 year mine life.

The design of the gold processing facility has made allowance for the later addition of a base metals grinding and recovery circuit.

Silver Lake, Integra Mining merger

Silver Lake and Integra Mining (ASX: IGR) are closer to the completion of a merger set to create one of the largest gold producers in Australia after Integra's shareholders overwhelmingly voted to support the merger via a scheme of arrangement.

The combined company, which will be 40% owned by Integra shareholders, currently has annual production of 200,000 gold ounces rising to over 400,000 ounces per annum in 2014 and combined Resources of 6.6 million ounces, including 1.8 million ounces of Reserves.

The scheme of arrangement will provide the ability to unlock significant operational synergies between the adjacent Mount Monger and Randalls gold projects in the Eastern Goldfields of Western Australia.

The expanded Silver Lake is set to become one of the largest gold producers on the ASX with a market cap. of $1 billion and $107 million in cash on completion of the merger.

The scheme now remains subject to approval by the Federal Court of Australia, with Integra's application to the court to be heard on Friday 21 December 2012.

If the merger receives Federal Court approval, the scheme of arrangement is set to be implemented on Friday 11 January 2013.

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