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Silver Lake Resources (ASX:SLR) - Managing Director, Luke Tonkin
Managing Director, Luke Tonkin
Source: Business News
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  • Silver Lake Resources (SLR) has reported record gold sales in the third quarter of the 2020 Financial Year
  • The company sold over 68,000 ounces of gold and more than 450 tonnes of copper from its Mount Monger and Deflector projects in Western Australia
  • Following strong sales in the March quarter, Silver Lake has upgraded its sales guidance for the financial year by 10,000 ounces of gold equivalent
  • The company now expects to sell between 250,000 and 260,000 ounces of gold equivalent in the current financial year
  • At the end of the quarter, the company had $227 million in cash and bullion and no debts
  • Silver Lake is trading flat today with shares selling for $1.77 per each

Silver Lake Resources (SLR) has reported record sales in the third quarter of the 2020 Financial Year. The company sold 68,183 ounces of gold and 452 tonnes of copper from its Mount Monger and Deflector projects, both in Western Australia.

The All-In Sustaining Costs (AISC) for the March quarter was $1,380 per ounce of gold, higher than the December quarter. However, the average gold sale price of $2,170 per ounce was also higher than in the previous quarter.

Following strong sales in the March quarter, Silver Lake has upgraded its sales guidance for the financial year by 10,000 ounces of gold equivalent. The company now expects to sell between 250,000 and 260,000 ounces of gold equivalent, at the same ASIC of $1,300 to $1,350 per ounce.

This new guidance is subject to continued mine and processing operations and production not being materially disrupted by COVID-19.

Mount Monger Project

The Mount Monger operations are located to the southeast of Kalgoorlie in the Eastern Goldfields. During the March quarter, Silver Lake recovered 41,971 ounces of gold from Mount Monger.

Subsequently, gold in stockpiled ore at the project increased by approximately 7,600 ounces to roughly 76,000 ounces.

At the Santa area, Silver Lake established surface and underground infrastructure and began to develop a shallow, high-grade underground mine with ore production commencing this month.

Deflector Project

Silver Lakes’ Deflector Gold Copper Mine is 450 kilometres north of Perth, to the east of Geraldton in the southern Murchison region. Production at this mine totalled 23,577 ounces of gold and 438 tonnes of copper during the quarter.

In March, Silver lake completed the maiden Mineral Resource Estimate (MRE) for Deflector South West. This estimated the area holds 304,000 ounces of gold at a grade of 14.9 grams per tonne, as well as 3600 tonnes of copper at 0.6 per cent.

Finances

By the end of the third quarter, Silver Lake has increased its cash and bullion by $41 million, bringing its total cash and bullion to $227 as of March 31, 2020.

This excludes any gold in the circuit or concentrate on hand, which is estimated to have a total value of $8.9 million. Silver Lake has no debts.

Company shares are trading flat for $1.77 each at 12:56 pm AEST.

SLR by the numbers
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