GOLD NEWS

Silver Lake opens up new gold hopes in Murchison

The successful mid-tier, high-grade gold producer near Kalgoorlie, Silver Lake Resources, has found a new lead in an old mining camp in the Murchison goldfield in the mid north of Western Australia.

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Silver Lake Ltd (ASX: SLR) detailed some shallow, thick and medium to high grade gold intercepts at the Genesis prospect, just 20 metres east and parallel to the Tuckabianna main zone in the north Murchison region.

The drill intersections included 3 metres grading 10.2 grams/tonne, 4m @ 7.3 g/t, 6m @ 4 g/t and 2m @ 5 g/t gold.

Mineralisation remains open to the north, south and at depth

Silver Lake's managing director Les Davis said there was potential for further near-surface mineralisation parallel to the 13 kilometre long Tuckabianna main zone

The company is getting a significant cash flow from the Mount Monger mining centre, south of Kalgoorlie. Davis said the company's accelerated exploration plan is targeting to significantly increase resources at Tuckabianna, Comet and Moyagee all in the Murchison District.

He said these projects have a combined resource of 7.8 million tonnes grading 3.8 g/t gold for 1 million ounces.

Genesis was a new discovery where a 21 hole shallow RC drill programme has been completed. Genesis contains multiple near surface, thick, high grade intercepts.

Davis said the next phase of step-out drilling will initially target the area south of the Genesis discovery.

"This exciting discovery greatly enhances our resource potential in the Murchison and confirms our belief that the region is significantly under explored.

Silver Lake's Mt Monger operation, 50 km south east of Kalgoorlie contains the Daisy Milano underground mine and the Christmas Flat open pit. The company has proved up new discoveries and extensions of old prospector mines at Mt Monger.

Gold ore from Mt Monger is transported to Silver Lake's 600,000 tonnes per annum Lakewood processing facility 5 km south east of Kalgoorlie.