Company Overview

Silver Lake is a gold producing and exploration company based solely in Western Australia with FY14 group production guidance of 205,000 to 220,000 ounces of gold.

Silver Lake’s core asset is the Mount Monger Operations, a high margin operation located in a first world jurisdiction 50km south east of Kalgoorlie in the Eastern Goldfields district of Western Australia.

The fall in gold price in mid-2013 resulted in the deferment of capital required to access higher grade, underground Reserves and focus production on lower grade open pit Reserves in the Murchison.  To date production and unit costs from the Murchison have been disappointing and given the prevailing gold price environment, the Murchison Gold Operations diverts both human and financial capital from higher value, lower risk projects in the Mount Monger region.  On 20 January 2014, Silver Lake announced a strategic review of its Murchison Gold Operations.

On 27 February 2014 Silver Lake announced that it would be placing the Murchison Gold Operations on care and maintenance.  Continuing at the Murchison Gold Operations is unsustainable at the current gold price so the Company is taking decisive action by placing it on care and maintenance.  This decision preserves a number of strategic options for the Company including recommencing operations in the event of a higher sustainable gold price.  As announced the cost to place the operation on care and maintenance is approximately A$12 million for redundancy payments and site contract restructuring expenses.  The ongoing care and maintenance cost for the Murchison Gold Operations is estimated at approximately A$120,000 per month.

Silver Lake's land position in Western Australia covers 5,500sqkm of highly prospective under explored tenements containing gold, silver, copper and zinc.

Silver Lake currently has JORC Resources and JORC Ore Reserves containing:

  •  6.4 million ounces of gold inclusive of 1.7 million ounces of reserve;
  •  10.5 million ounces of silver, inclusive of 8.5 million ounces of reserve; and
  •  133,500 tonnes of copper inclusive of 73,500 tonnes of reserve.

Silver Lake has a committment to long term exploration targeting 10 million oz Au over time.

Mount Monger Operations

  • estimated 10 year LOM at an all-in sustaining cost of A$1,070/oz
  • H1 FY14 EBITDA of A$38.8 million with all-in sustaining costs of A$1,016/oz (global average approximately A$1,360/oz)
  • positions Silver Lake as a high margin producer in a first world jurisdiction
  • 2 operating mills with combined capacity of 2.0mtpa
  • multiple mines in production: 5.0 to 7.0 g/t Au underground and 2.0 to 3.0 g/t Au open pit
  • 3.6Moz of resource including 0.8Moz of reserve
  • focusing capital on further optimising and funding growth project pipeline
  • FY14 guidance of 160,000 to 170,000 ounces of gold

Murchison Operation

Tuckabianna, Comet, Moyagee and Mount Eelya Projects

  • 100% owned
  • operation to be placed on care and maintenance in June 2014 quarter

Great Southern

  • Acquired 2012
  • Near term gold and base metal production
  • Feasibility studies completed for Kundip and Trilogy projects
  • Resource 15,981,700 @ 2.0 g/t Au for 1,002,300 oz and 15,180,000@ .6% for 94,800 tonnes Cu
  • Significant exploration potential including greenfields opportunities in the Munglingup tenements

Copper Lakes

  • Greenfield exploration project
  • Surface samples of up to 26.5% Cu and 5.18 g/t Au

Quality Management Team with Proven Track Record

  • Strong corporate, operations and exploration experience
  • Over 150 years of combined resource industry experience
  • Diversified spread of professional attributes
  • Extensive international network of industry and market contacts