Silver Lake continues to de-construct Eelya Complex

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THE DRILL SEREGANT: Silver Lake Resources (ASX: SLR) has provided an update on drilling activities from an ongoing $20 million exploration program targeting copper and other base metals within the Eelya Complex, part of the company’s Murchison project located 600 kilometres North of Perth.

Silver Lake commenced drilling at the Eelya Complex in September 2011, during which time it has encountered mineralisation along a mineralised corridor including the Hollandaire, Mount Eelya and Colonel deposits.

 

Ariel view of potential mineralised trend north of the Hollandaire deposit. Source: Company announcement

 

“We are confident that the current resource at Hollandaire is the catalyst to commence the pre-feasibility study which is further complemented by the ongoing drilling campaign, which has intersected mineralisation along a 10 kilometre trend” Silver Lake Resources managing director Les Davis said in the company’s announcement to the Australian Securities Exchange.

“The Eelya complex has the potential to further enhance the economics of our Murchison gold project with expanded gold production, copper and other base metal credits which can be processed at a marginal capital and operating cost at the nearby gold mill.

“We have drilled less than 100 holes in a 50 square kilometre area that is already showing to be well endowed with base metals.”

Recent assay results received from drilling at the Hollandaire deposit include:

–    5.4 metres at 4.5 per cent copper, 0.6 grams per tonne gold and 27 grams per tonne silver from 102 metres;

–    6.7m at 3.1 per cent copper, 0.3g/t gold and 16g/t silver from 93m; and

–    13.7m at 2 per cent copper, 0.2g/t gold and 6g/t silver from 254m (deepest drill hole to date).

Silver Lake said the Hollandaire copper resource sits below gold mineralisation that extends from the surface down to approx. 50 vertical metres depth.

It has an inferred resource totalling 2.8 million tonnes at 1.6 per cent copper, 0.4g/t gold and 5g/t silver with a supergene zone averaging 4.7 per cent copper.

The mineralisation remains open to the south west and at depth.

The company indicated it anticipates results from the pre-feasibility to be announced in the June 2013 quarter.