Silver Lake Resources Ltd reported an outstanding operating performance from its Mount Monger Operation during the March quarter, with record production underpinning a substantial increase in quarterly cashflow.
Gold sold for the quarter ended 31 March 2018 was 45.2koz, a 31% increase on the December quarter and 21% higher than any previous quarter from Mount Monger’s, Randalls Gold Processing Facility (“RGPF”). The strong production result lifts FY18 sales guidance to 145-150koz.
Production highlights include:
- Record mined ounces of 49koz, comprising 309kt mined at 4.95g/t
- Record gold production from the RGPF, with 310kt processed at 4.98g/t for 46.8koz recovered
- Final Board approval to commence development of the Aldiss Mining Centre
- Commercial production declared at Cock-eyed Bob
Silver Lake ended the quarter with a cash and bullion balance of A$87.3 million and has no debt. The A$20.6 million increase in cash from 31 December 2017 came despite the Company investing A$8 million in exploration and capital development at Mount Monger during the quarter.
In addition to the strong operating performance, Silver Lake announced a suite of strong exploration results during the quarter which demonstrate Mount Monger’s capacity to grow its mineral inventory and mine life from exploration targets proximal to its existing mine infrastructure.
Commenting on the quarter, Silver Lake Managing Director Luke Tonkin said:
“Record March Quarter production and strong cash generation from Mount Monger was underpinned by higher mined grades from both underground and open pit ore sources and is a direct result of our investment in the field. Silver Lake remains favourably positioned to end FY18 strongly and is exceptionally well capitalised to pursue value creating opportunities for our shareholders.”
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