Silver Lake buys Alloy Resources gold project

Silver Lake Resources Ltd has reached an agreement to buy Alloy Resources Ltd's Comet gold project and Kurrajong nickel prospects for a total of $1.575 million.

Silver Lake said the acquisition would increase its gold resource to in excess of one million ounces.

"This acquistition is consistent with our strategy of acquiring assets that have near term production capability as it includes a detailed pre-feasibility study for resuming mining at Comet," said Silver Lake Managing Director Les Davis.

"The additional resource provides the scale to assess a number of processing options built around existing infrastructure at our Tuckabianna project."

The Comet tenements contain a JORC indicated resource of 1.44 million tonnes at 3.0 g/t Au for 154,000 oz; and an inferred resource of 374,000 tonnes at 5.8 g/t Au for 77,000 oz. The acquisition will increaes Silver Lake's total gold resource to 5.70 million tonnes at 5.3 g/t Au for 1,060,000 oz.

Consideration for the transaction is payable as follows:

- a deposit of $150,000 has been paid to Alloy on reaching agreement; and

- a cash payment of $1.425 million will be paid to Alloy at completion, which is set to occur on 1 July 2008.

"This transaciton will be primarily funded from operating cash flow generated from our Mount Monger operations," Mr Davies said.