For personal use only

For personal use only
Suite 4, Level 3
South Shore Centre
85 South Perth Esplanade
South Perth WA 6151
TEL +61 8 6313 3800
FAX +61 8 6313 3888
ABN 38 108 779 782
Board of Directors:
David Quinlivan
Luke Tonkin
Les Davis
Kelvin Flynn
Brian Kennedy
Issued Capital:
2.0m Options
5.7m Performance Rights
All financial figures
quoted in this report are
in Australian dollars and
are unaudited
8 July 2016
FY16 Gold Sales and FY17 Guidance
Silver Lake Resources Limited (“Silver Lake” or the “Company”) provides the following
update on its gold sales for FY16 and its FY17 gold sales guidance.
FY16 gold sales of 132,400 ounces – achieving guidance
Average FY16 gold price achieved of A$1,580 per ounce
Cash and bullion as at 30 June 2016 of $42.5 million
All bank debt repaid
FY17 gold sales guidance of 135,000 to 145,000 ounces
FY17 exploration budget of $14 million in the Mount Monger area
In the FY16 period, Silver Lake achieved its gold sales guidance and delivered on the strategy
to return focus to its core Mount Monger Gold Operation (“Mount Monger”), 50 kilometres
southeast of Kalgoorlie in Western Australia.
At Mount Monger, measures implemented to deliver consistent cash generative ounces and
the restructure of the cost base to match the mine profile, proved successful in generating
FY16 gold sales of 132,400 ounces (FY15: 121,999 ounces).
A number of new ore sources were introduced at Mount Monger in FY16 including the Lucky
Bay and Santa open pits. Exploration and development work undertaken during the period
was also successful in bringing new, lower cost ore sources into the FY17 production
schedule. Gold will be produced from the Imperial/Majestic open pits from the first quarter
of FY17 and the recently approved high-grade Maxwells underground mine is forecast to
contribute approximately 15,000 ounces of production in FY17.
In FY17, Silver Lake expects gold sales to increase to a range of 135,000 to 145,000 ounces.
Ore will be sourced from Daisy Complex (“Daisy”), Majestic, Cock-eyed Bob (“CEB”) and
Santa mines with Maxwells steadily increasing its gold contribution in the second half of
Currently, 76,300 ounces of Silver Lake’s FY17 gold sales have been hedged at an average
price of A$1,655/oz.
Silver Lake invested approximately $15 million in a gated and phased exploration program
during FY16 which yielded significant results across all stages of the exploration pipeline,
from early stage target delineation through to advanced resource definition drilling.
Exploration highlights included a substantial resource increase at Maxwells, resource
extensions at CEB, high grade Dinnie Reggio intersections, strong gold trends identified from
air-core drilling of structural targets to the north and west of Daisy, spectacular high grade
gold intersections and extensions to the Daisy Complex gold lodes, and very encouraging
high grade gold intersections from underground positions at Daisy targeting gold veining
north of the North Fault.
Silver Lake Resources Ltd (ASX: SLR)
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For personal use only
Additionally, lower priority, non-core exploration projects in the Murchison and Great Southern were
divested or joint ventured to third parties, allowing Silver Lake to focus on deposit discovery and
development in the highly endowed Mount Monger gold field.
Mount Monger is a fertile gold field with a large portfolio of exploration targets, which demands that
exploration expenditure is deployed efficiently and effectively. Accordingly, all exploration targets at Mount
Monger are assessed and ranked according to their technical strengths, potential economic return, the
probability that the target will become a production source and the priority given to the exploration target
having regard to the Company’s operating strategy. The success of this program in FY16 has warranted Board
approval of a $14 million exploration budget for FY17.
In FY17, 35% of in ground exploration expenditure will be directed to resource definition to sustain current
operations and is concentrated at Daisy, CEB and Maxwells. The remaining 65% of in ground exploration
expenditure will be directed to multiple growth exploration targets in the Mt Belches BIF units, Salt Creek
area and structural corridor to the north and west of Daisy.
Commenting on the strong FY16 result and outlook, Silver Lake Managing Director Luke Tonkin said:
“The strong results achieved across the business in the past 12 months have been extremely satisfying and
are a credit to our people. The strategy to focus on increasing cash flow from our core Mount Monger
Operation to both strengthen our balance sheet and self-fund future projects has delivered tangible success
in FY16.
“We intend to maintain our operational discipline in FY17 with a strong focus on cash margins. This will
enable us to make another significant investment in exploration in the next 12 months to bring more low
cost ounces into our development pipeline, as we did in FY16.
“Silver Lake is delivering for today, developing for tomorrow and discovering for the future.”
For further information, please contact:
Luke Tonkin
Managing Director
+61 8 6313 3800
[email protected]
Silver Lake Resources Ltd (ASX: SLR)
Michael Vaughan
Fivemark Partners
+61 422 602 720
[email protected]
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