Tuesday, 14 February 2012

Silver Lake Resources: Wombola pit comes online with gold production from March 2012

Silver Lake Resources (ASX: SLR) which is a ASX 200 gold producing and exploration company, is developing into a major gold player in Western Australia, is ready to start gold production from the Wombola pit in March 2012.

The Wombola pit is part of the broader Mount Monger Operations, where the company is forecasting that production will be ramped up to 200,000 gold ounces annually from 2014.

Mount Monger already hosts a JORC Resource of 5.1 million tonnes at 8.9 grams per tonne (g/t) gold for 1.5 million ounces.

Production is currently being sourced from four independent underground mines accessed from the same infrastructure, being; Daisy Milano, Daisy East, Rosemary and Haoma, which are located around 50 kilometres from Kalgoorlie.

Open pit production is also being sourced from Wombola Dam starter pit.

Wombola metric breakdown

The Wombola pit has a current JORC Resource of 460,200 tonnes at 2.9g/t gold for 42,300 ounces, and has been subject to a mining study.

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.

Historical production includes being mined in the 1980’s for 87,000 tonnes at 2.9g/t gold for 8,000 ounces.

Importantly - metallurgical test work has been completed and the ore is free milling and ideally suited for processing at the Lakewood Gold Processing Facility, which is just 40 kilometres away.

Around 45% of the gold will be extracted through the gravity circuit with remaining gold recovered through the CIL circuit for an overall recovery of 90%.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/25330/silver-lake-resources-wombola-pit-comes-online-with-gold-production-from-march-2012-25330.html

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