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Silver Lake Resources adds Bank of Nova Scotia as substantial shareholder

Silver Lake Resources (ASX: SLR) has gained Bank of Nova Scotia as a substantial shareholder with the financial institution earning a 6.1% undiluted stake in the company.

Bank of Nova Scotia acquired 12.6 million shares in the four months prior to 30 November for an average per share price of A$2.84, valuing the shareholding at around $35.7 million.

Silver Lake is in an interesting position, having intercepted high grade gold at the Mount Monger operations, which importantly includes some bonanza grade strikes outside of the current resource.

A diamond drilling campaign has been undertaken at the Haoma underground mine, with extensional drilling returning strong intercepts of:

- 1.1 metres at 93.3 grams per tonne (g/t) gold;
- 1 metre at 86g/t gold; and
- 3.4 metres at 18.9g/t gold.

The continued gold discoveries by Silver Lake during 2011 help support the company's goal of an annual 200,000 gold ounce production rate by 2014.