Silver Lake Resources (ASX: SLR) is Australia’s leading gold producer with operations in Eastern Goldfields district of Western Australia. The company’s operations are targeted at gold exploration and production with tenements in the Mount Monger goldfields of Western Australia.
As per the top management, the continued intersection at Santa has increased the potential to host a third shallow, underground mine at Mount Belches which has already proved to be a highly successful shallow.
Hosted by Banded Iron Formation (BIF), both the east limb and west limbs of the Santa BIF are mineralized. Earlier, Silver Lake Resources was targeting the plunging of high-grade loads in the eastern BIF only but after the updated geological model for Santa, it is now targeting both the western and eastern BIF units.
It is a three-phase program that comprises of thirteen holes and till date two phases are complete with nine holes being digged whereas the assays have been received for the first five holes only. Nine holes have been completed to infill the untested zone of the western BIF limb that lies between the base of the Santa North open pit and the raft of high-grade intersections which is further extending the south plunge, approved by the current RC and diamond program.
All the nine diamond holes that are completed are intersecting with each other with strong level of mineralization, including gold that is visible in eight out of the nine holes that are completed out of which five holes intersects at visible gold in the target zone and three holes intersects at visible gold in two separate BIF units within the same drill hole with hole 18SADD004 being the thickest high grade intersection digged till date.
The increased production through the development of various deposits within the Mount Belches Mining Centre can prove to have a high potential to add significant value to Mount Monger as well. This can further contribute to a pretty higher margin ounce to the Randalls mill.
The results continue to confirm and support the high-grade mineralization in the west lode BIF units. Evaluation of these results has significantly increased the confidence in the potential to yield additional Mineral Resources at Santa and the potential development of a third underground mine at the Mount Belches Mining Centre.
Further, the third phase of the current drill program has been planned for Q3 FY19 incorporating three holes to infill the vertical gap of approximately 65 meters from the base of the Santa North Open Pit, targeting both the west lode and east lode BIF units.
In today’s trading session, SLR’s share price plunged by 2.062%, down by $0.010 to last trade at $0.475. The stock has seen a remarkable positive performance of 28% from $0.380 at beginning of 2018. However, in the past one month, the stock performed below expectations and experienced a downfall by 10.19% trading below its 30 days Simple Moving Average (SMA).
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