Silver Lake intercepts thick copper-gold at Hollandaire

THE DRILL SERGEANT: Silver Lake Resources (ASX: SLR) has received results from recently-conducted infill drilling activities at Hollandaire, situated within the Eelya Complex, part of the company’s Murchison gold project located 600 kilometres north of Perth.

Highlights from the drilling include:

–    12 metres at 8.7 per cent copper, including 5 metres at 3.1 grams per tonne gold from 88 metres;

–    12m at 8.1 per cent copper, including 5m at 2.1g/t gold from 73m;

–    10m at 8.8 per cent copper and 2.8g/t gold from 138m;

–    8m at 10.8 per cent copper, including 4m at 2g/t gold from 110m;

–    17m at 5.9 per cent copper from 95m;

–    12m at 4.4 per cent copper, including 4m at 3.2g/t gold from 136m; and

–    2m at 14.9 per cent copper and 3.1g/t gold from 114 metres.

Since Silver Lake commenced drilling at the Eelya Complex in September 2011 it has intercepted mineralisation along a 10 kilometre mineralised corridor that includes Hollandaire, Rapier, Mount Eelya and Colonel.

 

Aerial view of potential mineralised trend north of the Hollandaire deposit. Source: Company announcement

 

The company explained that the copper resource at Hollandaire sits below gold mineralisation extending from the surface down to approximately 50 vertical metres depth.

Hollandaire has a current inferred resource totalling 2.8 million tonnes at 1.6 per cent copper, 0.4g/t gold and 5g/t silver with the supergene zone averaging 4.7 per cent copper.

“We are confident that the current resource at Hollandaire is the catalyst to add a copper, gold and silver concentrate revenue stream to our Murchison gold project,” Silver Lake resources managing director Les Davis said in the company’s announcement to the Australian Securities Exchange.

“The Eelya Complex, beginning with Hollandaire, has the potential to add significant value to our Murchison gold project.

“The result is expanded gold production with copper and other base metal credits which can be processed at a marginal capital and marginal operating cost at the nearby gold mill.

“As an example, on a by-product credit basis, every $10 million per annum of margin realised from the base metals over 100,000 ounces of gold produced equates to $100 per ounce lower all in sustaining cash cost at the current gold operations.”

Hollandaire is currently the subject of a pre-feasibility study, which Silver Lake said is progressing to plan.

The company anticipates the results from the study will be announced in late June 2013.

The nearby gold mill has been constructed with the possible addition of a concentrate circuit in mind.

The crusher already has excess capacity and provision has been made for the ready addition of a grinding and flotation circuit.