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 discovers up to 45% copper at Hollandaire
Silver Lake Resources (ASX: SLR) has received assays from seven holes of a nine hole drill program at the Hollandaire project in Western Australia which show significant high grade copper, gold and silver mineralisation in massive sulphide zones.
The company has confirmed grades of up to 45% copper, 5.5 grams per tonne (g/t) of gold and 256g/t silver at the project, which lies within the Eelya complex, part of Silver Lake’s Murchison project.
Importantly, these assay results confirm Hollandaire as a high grade copper deposit that also contains gold and silver. The mineralisation remains open in all directions and at depth.
Managing director Les Davis commented, “The implications of this high grade copper discovery are significant. If the deposit proves to be economic, it can be processed at a marginal capital and operating cost at the nearby planned gold mill.
“In addition, the overall economics at the gold mill are also improved on the back of expanded gold production and a copper credit.”
Davis told Proactive Investors today the project only attracted incremental capital over and above what Silver Lake planned to spend.
“We can get benefits out of the operating costs because we are establishing the gold business up there anyway. We’re going to mine more units over the same fixed costs, which is a recipe for more margin.”
Highlight intersections include:
- 9.3 metres at 15.4% copper, 2g/t gold and 29g/t silver from 61 metres including 1 metre at 45.5% copper, 2.8g/t gold and 51g/t silver, and 0.8 metres at 41.2% copper, 5.5g/t gold and 62g/t silver;
- 14.3 metres at 7.8% copper, 1g/t gold and 20.1g/t silver from 109 metres including 1.7 metres at 23% copper, 1.8g/t gold and 77.3g/t silver; and
- 1.9 metres at 5.2% copper, 0.5g/t gold and 10.7g/t silver from 97 metres and 1 metre at 7.1% copper, 1.3g/t gold and 17.5 g/t silver from 111 metres.
Davis said there is up to 5.5g/t gold, plus additional silver, which can add to the company’s base case production plan for the Murchison.
He further elaborated that these results are just one set from one target, and there is still two holes outstanding on the assays.
“We’re seeing the really high grades just underneath the base of oxidation and that’s where we getting the chalcocite-rich copper.
“In the chalcocite zones we’ve got up to 45% copper, but in the primary zones we’ve still got up to 23% copper so it’s something special.”
The forward plan
The next phase of drilling will include step out drilling targeting the high grade massive sulphide zones containing supergene chalcocite to the west and south of drill holes 11HOD009 and 11HOD003, where the high grade mineralisation exists below the base of complete oxidation.
Required documentation is being prepared for this phase of drilling.
Drilling is in progress targeting the remaining eight electromagnetic conductors identified within a 50 square kilometre area at the Eelya Complex.
“We’re currently drilling the remaining eight targets and that will take us through to early New Year and then we should be able to move back onto the Hollandaire project subject to the documentation and approval process that we need to go through,” Davis said.
The assays for the remaining two holes are expected within three weeks. Silver Lake is targeting a maiden resource in the March 2012 quarter.
