THE BOURSE WHISPERER: Silver Lake Resources is about to commence gold production from the Wombola pit, which is part of the company’s Mount Monger operations.
Production from Wombola is due to commence in March with open pit production also being sourced from Wombola Dam starter pit.
The Wombola pit is located nine kilometres northwest of the Daisy Milano mine and boasts a current JORC gold resource of 460,200 tonnes at 2.9 grams per tonne for 42,300 ounces of gold.
Mount Monger Operations location plan. Source: Company announcement
“Gold mineralisation is contained within 50 metres of the surface in a series of steep north-west dipping quartz veins hosted within the Wombola dolerite and extends in several directions and remains open,” Silver Lake Resources said in its ASX announcement.
“Wombola pit is located on granted mining leases and was previously mined in the 1980’s producing 87,000 tonnes at 2.9 grams per tonne gold for 8,000 ounces.
“Metallurgical test work has been completed and the ore is free milling and ideally suited for processing at the Lakewood Gold Processing Facility (LGPF) located 40 kilometres away.”
Silver Lake said that commencing the project in March 2012, allows additional ore stock available for feed in readiness for stage 2 upgrade of Lakewood Mill to one million tonnes per annum in the September quarter 2012, which is currently on target.
Upon completion of the Wombola Dam starter pit Silver Lake will conduct further drilling below 30 metres depth with grade control and depth drilling to be carried out within the conceptual big pit shell.
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.
Silver Lake’s Mount Monger operations have a current JORC resource of 5.1 million tonnes at 8.9 g/t for 1.5 million ounces of gold.