Silver Lake Resources intersects near surface, high grade gold at Moyagee

Silver Lake Resources (ASX: SLR) has intersected high grade gold outside the current Resource at the Moyagee Project, within the company’s Murchison operation.

The company is developing a second gold mining operation at the Murchison Project, with multiple mines planned to feed a central processing facility.

A 15 hole reverse circulation drill program at the Break of Day deposit in Moyagee targeting strike and depth extensions to the existing resource has intercepted near surface, high grade gold, with results including:

- 1 metre at 7.3 grams per tonne (g/t) gold from 12 metres;
- 2 metres at 7.6g/t gold from 36 metres; and
- 5 metres at 14.7g/t gold from 85 metres.

Mineralisation at Break of Day remains open along strike and at depth, with Silver Lake planning a follow up program of infill and extensional drilling.

The Break of Day deposit contains a series of historical shallow underground mines with recorded production of about 16,000 ounces of gold at 46g/t gold. It is located 200 metres east of the main target, the Lena deposit, which has a Resource of 3.2 million tonnes at 3g/t gold for a total 313,000 ounces of gold.

The company plans to mine Lena via an open cut operation down to 65 metres depth, followed by underground mining.

Murchison Project

Silver Lake’s Murchison Project consists of three projects, Tuckabianna, Comet and Moyagee, and has a current Resource of 18.4 million tonnes at 2.8g/t gold for 1.7 million ounces of gold.

The base case production plan for the project has ore being sourced from 14 open pit and four underground mines.

The company has drilled out the planned open pit ore sources, and is now focused on extending the resources, particularly below 100 metres depth.

A 1.2 million tonne per annum mill has been acquired for this project. Production is expected to begin in the March quarter of 2013, and ramp up to 100,000 ounces per annum in 2014.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23540/silver-lake-resources-intersects-near-surface-high-grade-gold-at-moyagee-23540.html