News keeps flowing at Silver Lake

THE DRILL SERGEANT: ASX 300-listed gold producer Silver Lake Resources continues to receive pleasing assay results from ongoing exploration at its Mount Monger Operations located just outside of Kalgoorlie in Western Australia.

The Mount Monger Operations have a current JORC resource of 4.73 million tonnes at 8.7 grams per tonne for 1.33 million ounces of gold.

The company has received assay results from an ongoing underground diamond drilling program that is targeting multiple mineralised structures between Daisy Deeps & Haoma that are outside the company’s current resource.

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.

Production is currently being sourced from four independent mines accessed from the same infrastructure: Daisy Milano, Daisy East, Rosemary & Haoma.

The latest assay results include a significant intersection of 17.6 metres at 23.6 g/t gold located 30 metres west of Daisy Deeps and 50 metres below the current mine development.

Other significant intersections from the current drilling include:

– 2.6 metres at 100.6 g/t gold:

– 2.2 metres at 57.1 g/t gold; and

– 1.4 metres at 24.5 g/t gold.

Drilling is ongoing and the company expects further assays within a month.

“The historic endowment of Daisy Milano is ~1,000 ounces per vertical metre” Silver Lake Resources managing director Les Davis said in the company’s ASX announcement.

“These multiple mineralised structures have the potential to significantly increase the endowment per vertical metre and deliver enhanced production rates as the mine develops at depth.

“An increase in ounces per vertical metre that are accessible and produced from the same decline infrastructure will result in lower capital development costs per ounce.