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Silver Lake Resources Limited.

Silver Lake Resources hits bonanza 578 g/t gold At Haoma, boosts production sources

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Silver Lake Resources' (ASX:SLR) has received assay results revealing high grade gold intersections at the Haoma deposit within its Mount Monger Operations, located 200 metres west of the Daisy Milano mine in Western Australia.

High grade intersections at Haoma include:

- 0.4 metres at 578 g/t Au;
- 1.3 metres at 13.9 g/t Au, including 0.5 metres at 22.8 g/t Au;
- 1.4 metres at 7.4 g/t Au; and
- 0.2 metres at 270.0 g/t Au.

Mineralisation remains open to the south and at depth. Haoma could provide an additional near mine production source as these results are typical of the narrow vein quartz hosted mineralization at Daisy Milano and Daisy East.

Les Davis, managing director, said “our strategy to target near mine production sources is certainly delivering encouraging results. We are optimistic that more Daisy Milano and Daisy East size deposits exist within 200 to 400 metres of the main decline infrastructure.”

“It is pleasing that we are being presented with multiple near mine options to deliver into our 2014 target of 200,000 ounces per annum at our Mount Monger Operations,” Davis added.

Underground production is currently sourced from two independent mining fronts. Daisy Milano is producing at 60,000 oz per annum rates and Daisy East is being developed to produce at 20,000 oz per annum rates.

A number of measures are underway to expand underground production. A 520 metre deep ventilation shaft is being developed and will be completed in the June 2011 quarter. This will ramp up production from Daisy East and allow development of other near mine production sources.

In addition, underground diamond drilling is ongoing and targeting near mine production sources located within close proximity to the east and west of the Daisy Milano mine, such as Haoma.

The Haoma deposit is a historic underground mine and was mined at a grade of 28.9 g/t Au. Mining ceased at approximately 180 metres below surface due to the orebody plunging onto a neighboring tenement.

Silver Lake now controls the consolidated Mount Monger region and therefore can mine the down plunge extent of the previous workings.

Quick facts: Silver Lake Resources Limited.

Price: $1.02

Market: ASX
Market Cap: $831.22 m
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