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Silver Lake Resources expects significant gold upgrade at Daisy Deeps

Silver Lake Resources (ASX: SLR) has updated exploration progress on Daisy Deeps at its Mount Monger Operations in Western Australia and said a resource upgrade is imminent.

The area within the Daisy Milano mineralised system below 500 vertical metres from the surface is referred to as Daisy Deeps. A 26 hole underground diamond drilling programme has been completed designed to increase the projected mine life beyond five years.

Encouraging results have been returned from the remaining holes in the programme all containing multiple high grade intercepts with varying grades and widths typical of the kind seen in the Daisy Milano mineralised system.

High grade results below the Daisy Milano mineralised system were returned from the following three intercepts: 1.8 metres at 132 g/t Au (including 0.3 metres at 728 g/t Au); 1.7 metres at 52 g/t Au (including 0.3 metres at 192 g/t Au); and 1.6 metres at 33 g/t Au.

The mineralisation extends to 800 metres depth which is 200 metres below and 100 metres south of the existing resource and remains open at depth.

“The drilling programme has supported our view that the high grade mineralisation continues at depth and to the south outside the current resource boundary. We are expecting a significant upgrade to the current resource of 257,000 ounces to be announced in July 2010,” said Silver Lake’s Managing Director Les Davis.

“Daisy Milano has already produced 270,000 ounces of gold since inception and has a large high grade resource remaining to mine that is open at depth. The deposit rates as substantial on a regional scale supporting the potential for similar size deposits at our Mount Monger operations,” Davis added.

Disclosure: The author holds no positions in the company