Deflector South West ore drive face. Source: Silver Lake Resources
Market Herald logo


Be the first with the news that moves the market
  • Silver Lake Resources’ (SLR) Deflector gold and copper mine delivered its second consecutive quarter of record production in the three months ending December 31, 2021
  • This contributed to 65,148 ounces gold equivalent of quarterly production and half-year of 131,274 ounces gold equivalent, putting SLR on track to meet its FY22 guidance
  • Ore stockpiles significantly increased at the Mount Monger operation which will be utilised during the Aldiss open pit mining hiatus for the first half of 2022
  • Silver Lake rounded off the quarter with cash and bullion of $273.8 million
  • Company shares are down 9.85 per cent to trade at $1.51

Silver Lake Resources’ (SLR) Deflector gold and copper mine delivered its second consecutive quarter of record production in the three months ending December 31 2021.

The Deflector Gold and Copper Project is located 450 kilometres north of Perth, in the southern Murchison region of Western Australia.

It is a shallow narrow vein, high-grade gold and copper underground mine with a mineral resource of 3.04 million tonnes at 13.2 grams of gold per tonne (g/t) and 0.8 per cent copper, representing 1.29 million ounces of contained gold and 23,000 tonnes of copper.

Over the December quarter, the Deflector mine produced 31,838 ounces of gold and 243 tonnes of copper (32,977 ounces gold equivalent). This was up from the 32,212 ounces gold equivalent produced in the September quarter and 25,218 ounces in the prior corresponding period (December 2020 quarter).

In terms of sales, the company sold 32,313 ounces of gold and 239 tonnes of copper from the Deflector mine at an all-in sustaining cost (AISC) of $1332 per ounce.

Additionally, Silver Lake operates the Mount Monger project in WA which comprises the Daisy, Aldiss and Mount Belches mining centres, and the Randalls gold processing facility.

In total, Mount Monger produced 32,171 ounces of gold and sold 30,235 ounces at an AISC of $1953 per ounce.

The company was particularly pleased with Mount Monger’s significant increase of 21,000 ounces in ore stockpiles which has been a focus for the last three years. Stockpiled ore will reportedly support its mill constrained operating strategy as well as be used while open pit mining ceases at Aldiss for the six months ending June 30 2022.

All up, Silver Lake Resources’ total production for the December quarter was 64,009 ounces of gold and 243 tonnes copper (65,148 ounces gold equivalent). It sold 62,549 ounces of gold and 239 tonnes copper at a sales price of $2436 per ounce and AISC of $1633 per ounce.

As a result, group production for the first half of FY22 was 128,956 ounces gold — an 8 per cent increase on the pcp — and 494 tonnes copper, or 131,274 ounces gold equivalent.

The company said the half-year result leaves it well-positioned to continue its track record of delivering on its guidance to the market.

In addition, Silver Lake advanced the acquisition of Harte Gold who owns the Sugar Zone mine in Canada. Subsequent to the quarter, SLR won a bid to acquire the TSX-listed company which, if and when the transaction closes, will diversify its production base and exploration potential in a tier-one mining jurisdiction.

In terms of cashflow, SLR generated $11.9 million in cash from Mount Monger and $34.8 million from the Deflector operation. Capital and exploration expenditure totalled $7.4 million and the company spent just under $102 million on the Harte acquisition.

Cash and bullion at the end of the quarter was $273.8 million.

Company shares were down 9.85 per cent to trade at $1.51 at 1:08 pm AEDT.

SLR by the numbers
More From The Market Herald
Countplus (ASX:CUP) - Incoming CEO, Hugh Humphrey

" Hugh Humphrey appointed CEO of Countplus (ASX:CUP)

Investment services company CountPlus (ASX:CUP) has appointed Hugh Humphrey as the company's CEO, effective July 1.

" ASX employee tests positive for Covid-19

The ASX says an employee has contracted Covid-19.

" ASIC launches official investigation into ASX market outage

The ASX has confirmed today it is officially under investigation from the Australian Securities and Investments…

" ASX sheds more light on last week’s market tech failure

The Australian Securities Exchange has shed some more light on the nature of last week's market…