22/07/2015 - 16:00

Silver Lake to lift exploration

22/07/2015 - 16:00

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Gold miner Silver Lake Resources plans to boost its exploration spending by 60 per cent in the current financial year on the back of a strong improvement in its current and forecast cash position.

Silver Lake to lift exploration
Silver Lake also disclosed it has appointed Lincoln Capital to manage the sale of its Murchison and Great Southern projects.

Gold miner Silver Lake Resources plans to boost its exploration spending by 60 per cent in the current financial year on the back of a strong improvement in its current and forecast cash position.

The miner today reported gold sales of 32,904 ounces in the June quarter, contributing to an annual total of 124,209oz.

This was well below its 2014 total, after a major restructuring, but above its guidance of 120,000oz.

It expects modest growth next year, with gold sales guidance of 125,00oz to 135,000oz.

Its all-in sustaining cost was reduced to $A1,207/oz while its average sale price was $A1,522/oz.

As a result, its cash and bullion on hand increased 32 per cent to $29.1 million at June 30.

Silver Lake has locked in high prices for the future through its hedging program; its hedge book has increased to 100,213oz at an average price of $A1,570/oz.

The company plans to spend $15 million on exploration this year, focusing on highly prospective gold targets at Mount Monger near its existing mine and processing infrastructure.

However the South- Perth-based company’s quarterly report wasn’t all good news.

It disclosed that the private consortium that has leased its Murchison gold mill has run into financial difficulties and suspended operations.

Of the $4.3 million of lease income recorded by Silver Lake since the lease commenced in January, $3.2 million remains unpaid.

Silver Lake said the lessee was seeking a new source of funding but acknowledged there was no certainty this would eventuate.

Silver Lake also disclosed it has appointed Lincoln Capital to manage the sale of its Murchison and Great Southern projects.

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