The Mount Monger Operations generated positive cashflow of $61 million for the financial year ended 30 June 2014.
The Lorna Doone and Spinifex deposits were mined as separate open pit deposits in 1993 with production of 24,800 ounces at 2.52g/t.
An update to Resources and Reserves at Lorna Doone/Spinifex is underway and a mining study incorporating the latest drilling results is in progress.
Silver Lake has repeated gold sales guidance for the 2015 financial year of 125,000 to 135,000 ounces of gold.
However, this may be reviewed in late 2014 depending on the outcome of evaluations of several projects that are currently underway.
The company had completed infill drilling consisting of 33 reverse circulation and 24 diamond drill holes at the Lorna Doone and Spinifex deposits as part of ongoing exploration at Mount Monger.
All assays have been returned with results including
- 4.05 metres at 5.43 grams per tonne gold from 97 metres;
- 1.8 metres at 16.15g/t gold from 115 metres;
- 8 metres at 6.45g/t gold from 136 metres;
- 4 metres at 6.17g/t gold from 129 metres;
- 16 metres at 4.51g/t gold from 104 metres;
- 9 metres at 7.97g/t gold from 116 metres; and
- 7 metres at 3.94g/t gold from 215 metres.
The Lorna Doone and Spinifex deposits are hosted within a group of intermediate volcanic tuffs.
Mineralisation is typically 5 metres to 20 metres wide and located within a steeply dipping shear zone adjacent to bedding parallel felsic porphyries.
At Lorna Doone, this dips steeply to the west and plunges to the south, while at Spinifex the mineralisation has a vertical dip.
Cross cutting faults are evident in both deposits and are interpreted to cause zones of dilation and enhanced mineralisation.
Lorna Doone has a current Resource of 1.3 million tonnes grading 4.3g/t gold for 176,600 ounces of contained gold.
Previous drilling intersected 3 metres at 17.5g/t gold; 1.5 metres at 36.2g/t gold; 7 metres at 6.6g/t gold and 1.7 metres at 21.8g/t gold.
The infill drilling results at Lorna Doone and Spinifex are part of ongoing evaluation across Silver Lake Resources' Mount Monger Operations have the potential to displace lower grade stockpile feed in the second half of FY2015.
Silver Lake Resources had a very healthy $34.0 million of cash & bullion, no bank debt and investments in ASX-listed entities of $9.8 million at June 30, 2014 year end.
It has a hedge of 25,000 ounces of gold (October 2014 to March 2015) at A$1,540 per ounce.
The company also has investments in listed companies including a 15% interest, or 20.8 million shares, in Paringa Resources(ASX:PNL), a 4.6% stake, or 5.5 million shares, in Musgrave Minerals (ASX:MGV) and 11.2%, or 43.2 million shares, inSouthern Gold (ASX:SAU).
It has entered into a binding heads of agreement to sell its Lakewood Mill and associated infrastructure to a private consortium for A$5.5 million in cash and a 2% gross revenue royalty.
The company is also leasing its Murchison gold mill and associated infrastructure to a private consortium in return for $7.9 million in equal monthly payments over the 10 month lease.
This lease could be extended in two stages, increasing payments by up to $16.6 million.
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