Silver Lake Resources (ASX: SLR) has continued its significant brace of good news with multiple high grade gold discoveries identified from recent drilling at Mount Monger.
Mount Monger contains the Daisy Milano underground mine and the Christmas Flat open pit located 50 km south east of Kalgoorlie in Western Australia.
The three gold discoveries were at:
- “Daisy East” located ~40 metres east of Daisy Milano
- “Emma” ~70 metres east of Daisy Milano
- “Rosemary extension” located ~120 metres east of Daisy Milano
Silver Lake’s Managing Director Les Davis said “this is the first time that underground drilling has been conducted from Daisy Milano towards Rosemary due to multiple ownership and tenement boundary constraints. The discovery of two new minerilised lodes at Daisy East and Emma and the continuation of minerilisation of the Rosemary lode is an outstanding outcome”.
These discoveries may enable Silver Lake to develop three additional underground ore sources from Daisy Milano decline infrastructure.
Assay results have been returned for 8 of the 10 holes from the underground diamond drilling programme.
A 10 hole programme from the Daisy Milano mine 8 level (~250 metres below the surface) targeting extensions to the Rosemary orebody located ~120 metres to the east of Daisy Milano was conducted in May 2009.
Rosemary was previously mined on a small scale down to a depth of ~80 metres and produced 15,000 oz at 27.4 g/t Au. The Rosemary shaft was sunk to a total depth of ~120 metres.
This programme not only intercepted the extension of the Rosemary lode but also made two new discoveries. Daisy East and Emma were intersected ~40 and ~70 metres from Daisy Milano respectively. All three lodes are open along strike as well as up and down dip. Additional structures were also intersected ~ 5 metres and ~25 metres east of the Daisy Milano 8 level.
All structures contain typical Daisy Milano style narrow vein mineralisation with sericite pyrite alteration with some intercepts containing visible gold. The area defined by this initial programme is approximately 150 lateral metres by 40 vertical metres.
Davis said, “The structures identified contain typical Daisy Milano style narrow vein mineralisation that has resulted in mined grades of >10 g/t Au since Silver Lake took ownership of the mine. Daisy Milano is currently endowed with >1,000 ounces per vertical metre and the next drilling programme could prove up similar endowment for each of the three parallel ore lodes”.
“All lodes are located within close proximity from the existing Daisy Milano infrastructure and have the potential to significantly increase the near term production profile and the already robust ecomomics of our Mount Monger Operations”.
“This initial programme supports our view on the highly prospective nature of our tenements, in particular the east-west stacked nature of the minerilisation. The resource potential at our Mount Monger Operations is becoming evident and our strategy of producing from multiple mines is progressing to plan," Davis added.
The company is currently finalising an exploration plan for Daisy East, Emma and Rosemary and will make a further announcement once completed. The assays outstanding for the two remaining holes are due in early August 2009.
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