Silver Lake Resources Limited (ASX:SLR) has delivered further Mineral Resource and Ore Reserve growth at the Deflector gold mine in Western Australia’s Mid-West.
Recent extensional and infill drilling success has added 54% to the project’s Mineral Resources which has jumped to 1.27 million ounces (80% post FY20 mine depletion), while the Resource grade has increased 18% to 13.5 g/t.
Meanwhile, Ore Reserves increased to 447,000 ounces and 7,000 tonnes copper, an increase of 30% or 102% after FY20 mine depletion and ore grade increasing 15% to 6.3 g/t.
Managing Director, Luke Tonkin, said the increase in Mineral Resources and Ore Reserves demonstrates the prospectivity of the Deflector South West (DSW) corridor and the potential of ongoing in-mine and near-mine exploration to further enhance the financial returns from Silver Lake’s FY21 investment in the addition of a CIP circuit to Deflector’s existing gravity and float circuits, which will increase gold recoveries and broaden the range of potential ore sources
The growth in Deflector’s Mineral Resources and Ore Reserves also increases mine life, and combined with Rothsay’s high grade feed, allows Silver Lake to optimise in-mine and near-mine ore sources whilst preserving the potential to incorporate regional ore feed to the upgraded Deflector mill from FY22
Mr Tonkin pointed out that since Silver Lake’s acquisition of Doray Minerals Limited in April 2019, Deflector’s Ore Reserves and Mineral Resources have grown significantly in scale and quality, with Ore Reserves now at their highest in Deflector’s history.
The company is confident that there remains significant upside, with mineralisation open along strike, while the prospective basalt host sequence continues beyond the existing Mineral Resource limits, supporting the potential for continued growth
At the same time, recent drilling results from underground drilling in the DSW corridor provides further confidence in converting Inferred Mineral Resources to Indicated Mineral Resources, and ultimately Ore Reserves, and the potential to extend known Mineral Resources and discover new mineralised systems to the south and west
Mr Tonkin said further investment in targeted surface and underground exploration drilling for both Mineral Resource definition and extension is budgeted in FY21 as Silver Lake seeks to unlock the potential scale of the immediate and broader Deflector corridor