www.silverlakeresources.com.au
Silver Lake Resources (ASX: SLR) is a gold producing and exploration company with a resource base of 3.3 million ounces in highly prospective regions including the Mount Monger goldfield and the Murchison (Tuckabianna, Comet and Moyagee).
Silver Lake Resources' strategy is to develop large production centres at Mount Monger and at the Murchison with multiple mines at each centre. Silver Lake's exploration program is targeting 5 million ounces of gold in resource.
Silver Lake Resources highest grade gold hits to date at Murchison
Silver Lake Resources' (ASX: SLR) strategy to develop a second mining operation in the Murchison with multiple mines feeding a central processing facility has received a major boost, with the highest grade gold intersections to date at Murchison.
The outstanding highlight at the Caustons deposit was; 7.1 metres at 25.6 grams per tonne (g/t) gold from 209 metres.
Other hits from the deeper drilling program which is ongoing included:
- 2.0 metres at 19.7g/t gold from 115 metres;
- 4.6 metres at 10.9g/t gold from 210 metres;
- 2.5 metres at 8.4g/t gold from 210 metres;
- 2.0 metres at 6.4g/t gold from 137 metres; and
- 4.6 metres at 4.0g/t gold from 166 metres.
Les Davis, managing director, commented on the significance of the latest gold discoveries and said, “We continue to update our feasibility study with the latest information to ensure we have a robust and optimised plan by the time we make the decision to mine.”
To define the potential for Silver Lake at the project, there is only 3% of drill holes in the company's Murchison data base drilled deeper than 100 metres, supporting the company's view that significant resource potential exists at depth.
Ticking another box for Silver Lake is the proximity of Murchison to other major mines, such as Big Bell (4Moz), Great Fingall (2Moz) and Hill 50 (2Moz), which were all underground deposits that were mined to depths greater than 1,000 metres.
Strategy - A second mining operation
Silver Lake’s strategy is to develop a second mining operation in the Murchison with multiple mines feeding a central processing facility.
A 1.2 million tonne per annum mill has been acquired for this project and a decision to mine in the Murchison is expected late in 2011.
The current planned open pit ore sources have been drilled out and the focus is now on extending resources, particularly below 100 metres depth, to sustain a 100,000 gold ounce annual operation.
The Murchison Project has a current JORC Resource of 15.5 million tonnes at 3.0g/t for 1.5 million gold ounces.
Infill and extensional drilling programs are currently in progress targeting strike and depth extensions to the planned underground mines at Caustons, Tuckabianna West, Comet and Lena.
