Proactiveinvestors recommends

Red Sky Energy sees upside potential as New South Wales decision on Talma CSG pilot draws near
Xceed Resources: Cash backed and developing coal production and cash flows from Moabsvelden
Oro Verde on the exploration trail of gold and copper in Chile, commences trading today

Additional Information

Market:	ASX
Sector:	Gold Mining
EPIC:	SLR
Latest Price:	3.83 (2.96% )
52-week High:	3.87
52-week Low:	1.61
Market Cap:	706.75M

1 year chart

1 day chart

Silver Lake Resources Full Silver Lake Resources profile here

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 makes strategic bolt-on acquisition

Monday, July 05, 2010

Silver Lake Resources (ASX: SLR) has negotiated a deal with Cortona Resources Limited’s (ASX: CRC) 90% interest and Peter van der Borgh’s 10% interest in the North Monger Project, with a resource of 860,000 tonnes at 2.9 g/t Au for 80,300 ounces of gold, within trucking distance of the Lakewood Gold Processing Facility.

Consideration for the acquisition is a cash payment of A$3 million which will be funded from Silver Lake's cash reserves.

The Project hosts both gold and nickel resources compiled in accordance with JORC guidelines. The Wombola Pit and Wombola Dam deposits have a combined gold resource of 860,000 tonnes at 2.9 g/t for 80,300 ounces. The Black Hills project has a nickel laterite resource of 30 million tonnes grading 0.64 % Ni for 192,800 tonnes of contained nickel metal.

With the acquisition Silver Lake gains a gold asset with near term production ability in trucking proximity to the company's processing facility. In addition, there is scope to expand current JORC resources given exploration potential.

Widespread surface and subsurface mineralisation indicates that the North Monger Project is highly prospective for additional near surface, open pitable gold deposits. Deeper drilling has the potential to discover much larger deposits as the stratigraphy includes differentiated dolerite and porphyry, which are host rocks for many of the multi million ounce deposits throughout the Eastern Goldfields (eg Kalgoorlie, Kambalda,
Kanowna Belle, Coolgardie and Paddington).

“This acquisition is a strategic fit with 80,300 ounces of resource located within trucking distance of our Lakewood Gold Processing Facility. Wombola Pit and Wombola Dam have near term production potential and the project has exploration upside adjoining our Mount Monger Operations” said Silver Lake’s managing director Les Davis.

“We will immediately commence mining studies on Wombola Pit and Wombola Dam with the view of commencing production in the near term. Exploration targets will be ranked and drilling will commence next quarter” Mr Davis said.

Previous exploration was targeted at an average depth of 60 metres with only 10% of holes drilled deeper than 100 metres.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.