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Silver Lake has high hopes for new projects

30th October 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Although its gold production declined slightly in the three months to September 30, gold miner Silver Lake Resources has maintained its production guidance for the full year.

The miner this week reported that some 29 267 oz of gold was recovered from 298 557 t of ore, compared with the 31 680 oz produced in the June quarter.

The lower production was owing to mining from the Wombola Dam openpit having ceased in April.

Mill feed during the quarter was predominantly sourced from the Daisy Complex and the Cock-eyed Bob underground mines, with supplementary feeds from the ramp-up of the Lucky Bay and Santa Area openpits and surface stockpiles.

Mining at the Lucky Bay and Santa Area openpit mines started in late August and yielded some 5 099 oz of gold to the quarter.

Silver Lake pointed out that production from these openpits was scheduled to significantly increase in the December quarter, as the mines reached their full production capacity.

The openpit mines were expected to have a combined mine life of 14 months and would produce some 50 000 oz of gold.

Silver Lake has maintained its 2016 production guidance of between 125 000 oz and 135 000 oz, with the miner saying that ore feed for the remainder of the year would be sourced from both the underground and openpit mines, which would replace lower-grade stockpiles processed in the September quarter.

Mining options and optimisation studies were also continuing for a number of near-term mine sites in the Mount Monger region, including the Majestic, Imperial and Maxwells deposits.

Silver Lake was planning to start capital works for the Majestic and Imperial ore sources in the third quarter of 2016, with associated openpit mining expected to start by the fourth quarter of the financial year, and continue for about two years.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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