Silver Lakes Resources (ASX: SLR) has announced a maiden Mineral Resources Estimate (MRE) for the Deflector South West (DSW) Project in WA of 634kt @ 14.9 g/t gold and 0.6% copper for 304,000 ounces gold and 3,600 tonnes copper.
Following the completion of the acquisition of Doray Minerals in April 2019, Silver Lake has aggressively advanced exploration drilling targeting immediate strike extensions to the Deflector Mineral Resources within the broader Deflector corridor, which remains open in multiple directions.
The maiden DSW MRE incorporates the results from an accelerated Silver Lake drilling programme of 82 drill holes (26,333 metres).
The estimate covers an area spatially located adjacent to the Deflector mine and 2019 Deflector Mineral Resources Estimate (DMRE). The DMRE at 30 June 2019 was 2.3mt @ 11.4 g/t and 0.6% copper for 828,000 ounces gold and 14,100 tonnes copper.
Managing Director, Luke Tonkin, said the DSW MRE represents a 300 metre strike extension immediately to the south and south west of the 2019 DMRE.
He noted that data from an exploration development drive accessing the Deflector South West mineralisation, which commenced in January, is not included in the new estimate.
“However, Silver Lake is particularly encouraged that the results from the development drive to date are outperforming the DSW estimate and supports the continuity of mineralisation,” Mr Tonkin said.
“The high grade DSW MRE highlights the exploration potential of the highly prospective basalt host sequence which is interpreted to extend a further 1.5km south and is inadequately tested.
“A discovery cost of <$10 per ounce highlights the compelling value of Silver Lake’s exploration strategy of targeting proven mineralised corridors.
Mr Tonkin said the growth in Mineral Resources at the Deflector operation will enhance the returns derived from the proposed upgrade of the Deflector processing facility to include a “CIP circuit to complement the existing gravity and flotation circuits.
Since Silver Lake acquired Deflector in April 2019, the operation has grown in quality, scale and has significantly increased LOM visibility through a combination of exploration and M&A success.
Silver Lake will continue to invest in exploration that compliments its strategy of targeting proven mineralised corridors and leveraging infrastructure to deliver growth.”
Silver Lake elevated the exploration priority of the Deflector South West corridor adjacent to the 2019 Mineral Resources and existing underground mine development.
Three surface and underground drilling programmes targeting the south west zone were completed over the past nine months and have successfully defined high-grade gold/copper mineralisation with “Deflector style” quartz veining and massive sulphides to the south and south west over 500m of strike.
The DSW MRE will be subject to further infill and extensional drilling as the currently advancing exploration development drive reaches suitable drilling positions.
Silver Lakes believes the exploration drive will also provide valuable information for mining studies assessing the optimal mine plan for the area.