70% increase in high grade gold JORC Resource inventory to 2.5 million ounces

Transcription

1 ASX ANNOUNCEMENT 29 July 2010 ABN: % increase in high grade gold JORC Resource invenory o 2.5 million ounces Highlighs Moun Monger: Toal resource of 3.6 million onnes a 9.4 g/ Au for 1.1 million ounces 142% increase in resource a Daisy Milano o 623,700 ounces maiden resource a Daisy Eas oalling 142,600 ounces a 38.7 g/ Au 172% increase in resource a Magic o 152,800 ounces Norh Monger acquisiion of 80,300 ounces Murchison: Toal resource of 13.7 million onnes a 3.0 g/ Au for 1.3 million ounces maiden resources a Causons Souh, Genesis & Exodus oalling 121,000 ounces Toal June 2010 resource invenory: 17.8 million onnes a 4.4 g/ Au for 2.5 million ounces Silver Lake Resources Ld ( Silver Lake ) is pleased o announce a June 2010 JORC Resource invenory oalling 17.8 million onnes a 4.4 g/ Au for 2.5 million ounces (refer o able 1) an increase of 70% from he June 2009 invenory (refer o able 2). The June 2010 resource invenory is calculaed afer allowing for he previous year s mining depleion of 66,700 ounces. Silver Lake s discovery cos coninues o be less han A$10 per ounce. No all of he recen drilling success has been included in he laes invenory as drilling is ongoing. A furher resource upgrade will be announced in January 2011 o include: - expanded resources a Magic and Daisy Eas; - maiden resources for Lena Souh, Leviicus and Numbers in he Murchison; and - oher resources as defined by our ongoing drilling campaigns over he nex six monhs. To add over 1 million ounces of gold o our resource invenory during he year afer mining 66,700 ounces is a significan oucome and suppors our view on he underexplored, highly prospecive naure of our Moun Monger Operaions and Murchison projecs. Furher encouraging resuls are expeced from our ongoing drilling programmes hroughou he year as many of hese resources are by no means closed ou said Managing Direcor Les Davis. The immediae implicaions of he increased resource base a a susained high grade, are o confirm a mine life a our M Monger Operaions well beyond 5 years and o make a second producion cenre in he Murchison more likely han no, Mr Davis added. Silver Lake Resources Ld (ASX: SLR) Page 1 of 15

2 5 4 Million Ounces 3 2 Over 1 million ounces added afer depleion of 66,700 oz 1 0 Nov-07 Jun-08 Jun-09 Jun-10 Dec-10 Jun-11 Dec-11 June-12 Targe Range Figure 1: Resource invenory since incepion in November 2007 (refer o noe 1 on page 7 regarding exploraion arges). Exploraion - Moun Monger Figure 2: Schemaic view of arge zones a Moun Monger. Silver Lake Resources Ld (ASX: SLR) Page 2 of 15

3 The nex six monhs surface drilling programmes a Moun Monger will mainly be argeing he hick high grade zones inerseced a he Magic deposi locaed 3km souh of Daisy which include: - 11 meres a 59.4 g/ Au from 251 meres (including 1.5 meres a 243 g/ Au); - 10 meres a 19.1 g/ Au from 52 meres; - 3 meres a 23.8 g/ Au from 44 meres; and - 15 meres a 4.7 g/ Au from 272 meres; The mineralisaion a he Magic deposi remains open o he souh and a deph. Underground drilling programmes over he nex six monhs will be argeing he norhern exen a Daisy Eas and exensions o Emma, Rosemary and Haoma. Exploraion Murchison Figure 3: Murchison projecs locaion plan. Silver Lake Resources Ld (ASX: SLR) Page 3 of 15

4 5.0 km 360 m 1.3 meres a 10.5 g/ Au 3.0 meres a 15.7 g/ Au from 11 meres 9.0 meres a 3.6 g/ Au from 33 meres 4.8 meres a 26.1 g/ Au from 58 meres 3.5 meres a 16.4 g/ Au from 65 meres 7 meres a 3 g/ Au from 9 meres 3 meres a 8 g/ Au from 16 meres 2 meres a 7 g/ Au from 41 meres 4 meres a 28 g/ Au from 90 meres 1 mere a 94 g/ Au from 92 meres Figure 4: Schemaic view of Lena, Lena Souh, Leviicus and Numbers. The Moyagee Projec (refer o figure 3) conains 35 km of he highly prospecive Lena Shear zone. The Lena deposi is locaed in his shear zone and already has a resource of 820,000 onnes a 8.5 g/ Au for 224,200 oz (refer o able 1). Infill drilling will be underaken over he nex six monhs a Lena Souh, Leviicus and Numbers prospecs o calculae a maiden resource for each area (refer o figure 4). Silver Lake Resources Ld (ASX: SLR) Page 4 of 15

5 Resource invenory June 2010 Deposi Measured Resources Indicaed Resources Inferred Resources Toal Resources g/ Au Toal g/ Au Toal g/ Au Toal g/ Au Toal Daisy Milano Daisy Eas Chrismas Fla Cosello Lorna Doone Magic , Wombola Pi Wombola Dam Toal Moun Monger , , , ,081.0 Causons Causons Souh Tuckabianna Friars Jasper Queen Gil Edge Genesis Exodus Julies Reward Sherwood Jaffas Folly Lile John TMC/Kaies , , , , Toal Tuckabianna , , , Come , , , Moyagee Toal Murchison , , , ,321.6 Rohsay Toal Silver Lake , , , , , ,535.5 Table 1: June 2010 Resource Invenory Rounding may give rise o uni discrepancies in his able Noes o able 1: 1: Selemen for he Norh Monger ransacion is expeced o occur in he Sepember 2010 quarer. 2: Refer o documenaion in appendices. Silver Lake Resources Ld (ASX: SLR) Page 5 of 15

6 Deposi Measured Resources Indicaed Resources Inferred Resources Toal Resources g/ Au Toal g/ Au Toal g/ Au Toal g/ Au Toal Daisy Milano Chrismas Fla Cosello Lorna Doone Magic Toal Moun Monger Come , , Moyagee Tuckabianna , , , Toal Murchison , , , Rohsay Toal Silver Lake , Table 2: June 2009 Resource Invenory Rounding may give rise o uni discrepancies in his able For more informaion abou Silver Lake and is projecs please visi our web sie a For furher informaion please conac Les Davis Managing Direcor conac@silverlakeresources.com.au Silver Lake Resources Ld (ASX: SLR) Page 6 of 15

7 Abou Silver Lake Resources Ld: Silver Lake is an ASX 300 gold producing and exploraion company wih a resource base of 2.5 million oz in highly prospecive regions including he Moun Monger goldfield and he Murchison (Tuckabianna, Come, and Moyagee). Silver Lake s sraegy is o develop large producion cenres a Moun Monger and a he Murchison wih muliple mines a each cenre. Silver Lake s Moun Monger Operaion conains he Daisy Milano and Daisy Eas underground mines locaed 50 km souh eas of Kalgoorlie. Moun Monger has addiional muli mine poenial underpinned by emerging open pi producion from Magic, Cosello and Lorna Doone deposis. Furhermore he discoveries of Emma and he exension of he Rosemary lode show poenial as near erm producion sources. Gold ore from Moun Monger is ranspored o Silver Lake s 600,000 pa Lakewood Gold Processing Faciliy locaed 5 km souh eas of Kalgoorlie and 45 km from he Daisy Milano mine. The Company coninues o review low capial milling opions for he Murchison projec. Ongoing exploraion will focus on exending curren resources ha are consrained by limied drilling paricularly below 100 meres deph. Our sraegy is o delineae sufficien resources o susain a 100,000 oz per annum operaion. Silver Lake s exploraion programme is argeing 1 5 million oz Au in resource. Compeen Person s Saemen The informaion in his repor ha relaes o Exploraion Resuls and Mineral Resources is based on informaion compiled by Mr Chrisopher Banasik who is a Member of he Ausralasian Insiue of Mining and Meallurgy. Mr Banasik is a full ime employee of Silver Lake Resources Ld, and has sufficien experience which is relevan o he syle of mineralisaion under consideraion o qualify as a Compeen Person as defined in he 2004 ediion of he JORC Code. Mr Banasik has given his consen o he inclusion in he repor of he maers based on he informaion in he form and conex in which i appears. 1: Informaion ha relaes o exploraion arges refers o arges ha are concepual in naure, where here has been insufficien exploraion o define a Mineral Resource and i is uncerain if furher exploraion will resul in he deerminaion of a Mineral Resource. 2: Informaion in his repor relaing o he Wombola Dam and Wombola Pi Mineral Resources has been compleed by Mr Aaron Green of Runge Ld., who is a member of he Ausralian Insiue of Geoscieniss. Mr Green has sufficien experience which is relevan o he syle of mineralisaion and ype of deposi under consideraion and o he aciviy which he is underaking o qualify as a compeen person under he 2004 Ediion of he Ausralasian Code for reporing of Exploraion Resuls, Mineral Resources and Reserves (he JORC Code). Mr Green consens o he inclusion of he daa in he form and conex in which i appears. Silver Lake Resources Ld (ASX: SLR) Page 7 of 15

8 Appendices: Moun Monger Noes relaing o he Daisy Milano and Daisy Eas June 2010 Mineral Resource Invenory: Geology The dominan rock ypes hosing he gold mineralisaion are felsic and mafic unis. The former comprises felsic o inermediae pyroclasic rocks and coarse volcanogenic sedimens. The overlying mafic uni comprises high magnesium basal wih hin cher members. Boh unis are inruded by layered ulramafic o mafic sills and dykes of felsic porphyry. Gold mineralisaion is hosed by hin (0.1 mere o 1.0 mere wide), subverical dipping quarz veins wihin norh o norh-eas rending shear zones. Some easwes rending cross cuing veins are also known o be mineralised. Daa Densiy Wihin he Daisy Milano resource he diamond drilling spacing ranges from 40 meres by 40 meres spacing down o 15 meres by 15 meres spacing. For he producion face samples he daa densiy is approximaely 2 meres by 15 meres, being he lengh of each developmen round and he disance beween levels in he developmen drives. Geological Inerpreaion For areas of he resource adjacen or beween developed mine levels, ore zone oulines were digiised by Silver Lake Resources personnel based on developmen face daa and level plan geology oulines. Where digiised ore oulines appeared no o coninue up o or down o he nex level he ore zone was projeced half way o he nex level (approximaely 7.5 meres). Away from developmen, due consideraion was given for he seep dipping bu srike disconinuous naure of he known mineralisaion when generaing wireframe oulines. Drilling Technique The drill hole daa used for he June 2010 updae was obained by underground diamond drilling. Core diameer varies beween NQ (76mm) and LTK 60 (60mm) for underground. Accuracy of Locaion of Sampling Poins All drill collars were surveyed by mine surveyors or licensed land surveyors. The Daisy Milano deposi is drilled on a local grid referenced back o he Naional Grid sysem. Drill holes are rouinely surveyed down hole using eiher Easman single sho or elecronic mulisho cameras. The face daa is obained from underground developmen headings. The locaion of his daa is deermined via sandard underground survey pick up mehods. The maximum error in he locaion of his daa is 4 meres in he verical and 4 meres in he horizonal (i.e. he size of he developmen heading). Sampling Techniques Diamond drill core was whole, half or quarer core sampled and submied for assaying. The minimum sample inerval was 0.1 mere o a maximum of 1.1 meres. Sample inervals were consrained o geological boundaries defined by lihology, aleraion or srucure. For face sample daa, chips are aken across he face and likewise consrained o zones of similar lihology, aleraion or srucure. The maximum lengh across a face sample is 1.0 mere. Drill Core Recovery Drill core recovery exceeds 98%. Silver Lake Resources Ld (ASX: SLR) Page 8 of 15

9 Specific Graviy Immersion echnique and specific graviy deerminaions of he porphyry uni which hoss he gold mineralisaion have been carried ou. The specific graviy of his uni is 2.75 cm, his value has been used in he resource calculaion. Qualiy of Assay Daa Sample preparaion and assaying of samples was done by AMDEL Laboraories Ld in Kalgoorlie. The fire assay mehod used by he laboraory was he FA1 or he FA1UG mehod. This used a 40 gram charge and had a deecion limi of 0.01 ppm Au wih an accuracy of +/- 10% for assays of greaer han 0.5 ppm Au. The screen fire assay mehod was used whenever visual gold was observed by he geologis logging a drill hole. This mehod was also used on sample coarse rejecs when assays were unexpecedly high or low. Qualiy of Daa Descripion All drill holes were logged by mine sie geologiss and exernal specialiss. Feaures relaing o lihology, aleraion ype, aleraion inensiy, vein ype, vein inensiy as well as srucural feaures are capured and sored in an elecronic daabase. Drill core is also phoographed. Esimaion Techniques Three dimensional orebody oulines and block models were generaed by Silver Lake Resources personnel. The grade inerpolaion mehod was Inverse Disance Squared based on drill hole, face sample daa and geological inerpreaions provided by Silver Lake Resources. Cu-off s Usual saisical mehods were used o deermine he op cu for he gold disribuion. The orebody syle leads o a high op cu due o he high nugge. The lower cu off grade used is 3 g/ Au and he upper cu was 600 g/ Au. Meallurgical Consideraions Meallurgical esing has been done on he ores. The esing shows ha i is likely ha a high proporion of he gold will be won in he graviy separaion for Daisy Milano ores. Noes relaing o he Magic June 2010 Mineral Resource Invenory: Geology The Magic projec is associaed wih norh, norh-wes splay fauls off he Godard shear. The gold is hosed wihin 2 o 3 ses of wavy quarz veins ha form wihin, or proximal o, a quarz feldspar porphyry uni. The quarz veins and he porphyry cross-cu he souh-wes dipping volcanic sraigraphy. This sraigraphy comprises andesiic volcaniclasic rocks ranging from fine-grained pillow andesies o polymicic mass flow rocks. Several hin Proerozoic dykes cross cu he mine sequence, wih one dyke (approximaely 20 m hick) encounered. Several wedges of alc alered ulramafic rock occur wihin he sequence. Gold mineralizaion is always associaed wih quarz veins ha are ypically less han 1m hick bu vary from 0.1m o 2m in widh. Mineralisaion is hough o erminae down dip a he ulramafic conac, which plunges souh a 30 degrees. Mineralisaion is open a deph. Silver Lake Resources Ld (ASX: SLR) Page 9 of 15

10 Daa Densiy Since June 2009 and addiional 108 RC holes and 28 diamond holes have been drilled ino he deposi. These majoriy of he RC holes were shor (30>) which were used o es he upper porions of he resource. The diamond holes were used o define he resource a deph and down plunge (o he souh). Geological Inerpreaion Resource oulines are generaed by creaing wireframes of inerpreed zones of grade coninuiy. The wireframes are snapped o drill holes and convered ino an orebody solid model. The model was creaed by Silver Lake Resources geologiss in conjuncion wih Runge Mining resource geologiss. Drilling Technique The drill hole daa used was obained by surface RC and diamond drilling. Accuracy of Locaion of Sampling Poins All drill collars were surveyed by mine surveyors or licensed land surveyors. The Magic resource is drilled on he local Solomon Grid referenced back o he Naional Grid sysem. Drill holes are rouinely surveyed down hole using eiher Easman single sho or elecronic mulisho cameras and gyroscopic down hole surveying equipmen. The work as well as he addiional drilling which has increased confidence in he geological model has lead o a porion of he resource model being upgraded o an indicaed resource caegory. Sampling Techniques Diamond drill core was whole, half or quarer core sampled and submied for assaying. The minimum sample inerval was 0.1 mere o a maximum of 1.1 meres. Sample inervals were consrained o geological boundaries defined by lihology, aleraion or srucure. RC samples were sampled a 1 mere inervals wihin and beyond he inerpreed ore zone. Four mere composies were used in all oher pars of he hole. Where he 4m composies had grade of greaer han 0.05 g/, he individual mere samples were obained and assayed. Samples were riffle spli in preparaion for assay. Sandards were added for every 20 samples, duplicaed and added o he sample suie every 30 samples. Drill Core Recovery Core recovery was above 95%. Specific Graviy Bulk densiy values of 1.8 /m3 for oxide, 2.2 / m3 for ransiion and 2.8/m3 for fresh maerial, were used in he resource calculaion. Qualiy of Assay Daa Sample preparaion and assaying of samples was done by Amdel Laboraory in Kalgoorlie. The fire assay mehod used by he laboraory was he FA1EX mehod. This used a 40 gram charge and had a deecion limi of 0.01 ppm Au wih an accuracy of +/- 10% for assays of greaer han 0.5 ppm Au. Qualiy of Daa Descripion All drill holes were logged by mine sie geologiss and exernal specialiss. Feaures relaing o lihology, aleraion ype, aleraion inensiy, vein ype, vein inensiy as well as srucural feaures are capured and sored in an elecronic daabase. Silver Lake Resources Ld (ASX: SLR) Page 10 of 15

11 Esimaion Techniques Three dimensional orebody oulines and block models were generaed by Silver Lake Resources personnel. The grade inerpolaion mehod was Inverse Disance Weighing based on drill hole daa and geological inerpreaions provided by Silver Lake Resources. Cu-off s Usual saisical mehods were used o deermine he op cu for he gold disribuion. The lower cu off grade used is 1 g/ Au and he upper cu was 40 g/ Au. Meallurgical Consideraions Samples from he recen diamond drilling and RC programmes have been sen o AMMTEC laboraories for recovery es work. These resuls will form par of he mining feasibiliy sudy. Noes relaing o he Cosello June 2010 Mineral Resource Invenory: Geology The Cosello projec is associaed wih norh, norh-wes splay fauls off he Godard shear. The gold is hosed wihin 2 o 3 ses of wavy quarz veins ha form wihin, or proximal o, a quarz feldspar porphyry uni. The quarz veins and he porphyry crosscu he souh-wes dipping volcanic sraigraphy. This sraigraphy comprises andesiic volcaniclasic rocks ranging from fine-grained pillow andesies o polymicic mass flow rocks. Several hin Proerozoic dykes cross cu he mine sequence, wih one dyke (approximaely 20 m hick) encounered. Several wedges of alc alered ulramafic rock occur wihin he sequence. Gold mineralizaion is always associaed wih quarz veins ha are ypically less han 1m hick bu vary from 0.1m o 2m in widh. Mineralisaion is hough o erminae down dip a he ulramafic conac, which plunges souh a 30 degrees. Mineralisaion is open a deph. Daa Densiy Since June 2009 and addiional 100 RC holes and 4 diamond holes have been drilled ino he deposi. These majoriy of he RC holes were shor (30>) which were used o es he upper porions of he resource. The diamond holes were used o define he resource a deph and down plunge (o he souh). Geological Inerpreaion Resource oulines are generaed by creaing wireframes of inerpreed zones of grade coninuiy. The wireframes are snapped o drill holes and convered ino an orebody solid model. The model was creaed by Silver Lake Resources geologiss in conjuncion wih Runge Mining resource geologiss. Drilling Technique The drill hole daa used was obained by surface RC and diamond drilling. Accuracy of Locaion of Sampling Poins All drill collars were surveyed by mine surveyors or licensed land surveyors. The Magic resource is drilled on he local Solomon Grid referenced back o he Naional Grid sysem. Drill holes are rouinely surveyed down hole using eiher Easman single sho or elecronic mulisho cameras and gyroscopic down hole surveying equipmen. The work as well as he addiional drilling which has increased confidence in he geological model has lead o a porion of he resource model being upgraded o an indicaed resource caegory. Silver Lake Resources Ld (ASX: SLR) Page 11 of 15

12 Sampling Techniques Diamond drill core was whole, half or quarer core sampled and submied for assaying. The minimum sample inerval was 0.1 mere o a maximum of 1.1 meres. Sample inervals were consrained o geological boundaries defined by lihology, aleraion or srucure. RC samples were sampled a 1 mere inervals wihin and beyond he inerpreed ore zone. Four mere composies were used in all oher pars of he hole. Where he 4m composies had grade of greaer han 0.05 g/, he individual mere samples were obained and assayed. Samples were riffle spli in preparaion for assay. Sandards were added for every 20 samples, duplicaed and added o he sample suie every 30 samples. Drill Core Recovery Core recovery was above 95%. Specific Graviy Bulk densiy values of 1.8 /m3 for oxide, 2.2 / m3 for ransiion and 2.8/m3 for fresh maerial, were used in he resource calculaion. Qualiy of Assay Daa Sample preparaion and assaying of samples was done by Amdel Laboraory in Kalgoorlie. The fire assay mehod used by he laboraory was he FA1EX mehod. This used a 40 gram charge and had a deecion limi of 0.01 ppm Au wih an accuracy of +/- 10% for assays of greaer han 0.5 ppm Au. Qualiy of Daa Descripion All drill holes were logged by mine sie geologiss and exernal specialiss. Feaures relaing o lihology, aleraion ype, aleraion inensiy, vein ype, vein inensiy as well as srucural feaures are capured and sored in an elecronic daabase. Esimaion Techniques Three dimensional orebody oulines and block models were generaed by Silver Lake Resources personnel. The grade inerpolaion mehod was Inverse Disance Weighing based on drill hole daa and geological inerpreaions provided by Silver Lake Resources. Cu-off s Usual saisical mehods were used o deermine he op cu for he gold disribuion. The lower cu off grade used is 1 g/ Au and he upper cu was 25 g/ Au. Meallurgical Consideraions Samples from he recen diamond drilling and RC programmes have been sen o AMMTEC laboraories for recovery es work. These resuls will form par of he mining feasibiliy sudy. Silver Lake Resources Ld (ASX: SLR) Page 12 of 15

13 Murchison Noes relaing o he Causons June 2010 Mineral Resource Invenory (includes Exodus, Genesis, Causons Souh and Causons Norh): Geology The dominan rock ype hosing gold mineralisaion is a sedimenary banded iron uni ha is locaed wihin a hick mafic sequence. Minor felsic inrusions 1m o 10m hick inrude he sequence parallel o bedding and also perpendicular o he dominae srike. Minor mineralision occurs on he mafic/felsic conacs. Gold mineralisaion is ypically 1 o 10m wide and dip a 60 o he grid eas. An exensive layer of weakly mineralised laerie covers he majoriy on he BIF mineralisaion. The laerie is a horizonal layer ypically 1m o 10m hick ha is 50m o 100m wide. Daa Densiy The upper porions of he Causons resource (100m below surface) have been exensively drilled wih RC and Diamond drilling by previous owners on 25m by 20m ceners. The lower porions of he resources have been drilled on 50m by 50m ceners wih RC and Diamond drilling of which 89 were drilled by Silver Lake in Accuracy of locaion of sample poins Majoriy of drill collars have been accuraely locaed by eiher a licensed surveyor using a oal saion or DGPS. The Causons deposi is drilled on a local mine grid and referenced back o Naional Grid sysem. All holes compleed by Silver Lake are rouinely surveyed downhole using eiher an Easman camera or elecronic muli-sho device. Some of hese survey have been checked agains a gyroscopic survey. Mineralision Inerpreaion Mineralised oulines were prepared using a 0.5g/ Au ouline wih a minimum widh of 4m unless consrained by geological boundaries. Mineralisaion was exended 10m or half way beween he las mineralised secion. Mineralisaion was exended 40m down dip from he las mineralised inercep. Sampling and assay echniques Diamond core was sampled o geological boundaries and hen cu in half using a diamond cuing blade and submied for assay. RC samples are iniially colleced every 4m and hen 1m splis aken for samples ha reurn an assay greaer han 0.1g/ Au. Deails of he sampling echniques from he hisoric drilling are no known. Sample preparaion and assaying for he SLR samples was compleed by Ulrarace laboraories in Perh. All assays were deermined by he fire assay mehod using a 40g charge wih a lower deecion limi of 0.01ppm Au. Bulk Densiy Bulk Densiy has been assigned o he resource using inerpreed weahering surfaces deermined from drill hole logging. The following values were used for he respecive zones. Laerie 2.0/m³ Oxide 2.6/m³ Transiional 2.8/m³ Fresh 3.25/m³. Silver Lake Resources Ld (ASX: SLR) Page 13 of 15

14 Values for he laerie, oxide and ransiional zones were based on hisoric daa from previous resource esimaes. The value for he fresh mineralisaion was based on bulk densiy values colleced by SLR from diamond drill core using he waer immersion echnique. Esimaion A hree dimension block model was creaed and gold grade esimaed ino he inerpreed mineralised oulines using Inverse Disance Squared grade esimaion. Only RC and Diamond drill daa was used and sample lenghs were all composied o even 1m lenghs before esimaion. High Cus Saisical analysis was used o deermine high grade cus o apply o he composie daa. Various high grade cus, ranging from 3g/ Au for he Laerie o 70g/ Au for he high grade BIF lodes have been applied. The resource was repored a a 1g/ cu off for maerial above he 350mRL (120m below surface) and 2g/ for maerial below 350mRL. Meallurgical consideraions Meallurgical esing has been compleed on he samples colleced from he Genesis and Exodus zones, wih resuls showing recoveries in excess of 90% from convenional CIL processing. Noes relaing o he Come June 2010 Mineral Resource Esimaes (includes Come Norh, Pinnacles, Eclipse and Venus): Geology Mineralisaion a Come is hosed wihin or adjacen o srucurally deformed iron (Fe) enriched silicified sedimens. Au is locaed wihin quarz, carbonae, pyrie and pyrrhoie sringers ha have fracured and replaced porions of he Fe rich sedimens. Two parallel zones of mineralisaion have been idenified which vary from 1m o 5m in hickness. The wo zones of mineralisaion are ermed he Upper and Lower lodes and are separaed by a mafic uni which varies in hickness from a 0.2m o 10m. Daa Densiy The upper porions of he Come resource (100m below surface) has been exensively drilled wih RC and Diamond drilling by previous owners on 20m by 20m ceners. The lower porions of he resources have been drilled on irregular spacing using RC and Diamond drilling of which 19 were drilled by Silver Lake in Accuracy of locaion of sample poins Majoriy of drill collars have been accuraely locaed by eiher a licensed surveyor using a oal saion or DGPS. The Causons deposi is drilled on a local mine grid and referenced back o Naional Grid sysem. All holes compleed by Silver Lake are rouinely surveyed downhole using eiher an Easman camera or elecronic muli-sho device. Mineralision Inerpreaion Mineralised oulines were prepared using a 0.5g/ Au ouline wih a minimum widh of 2m unless consrained by geological boundaries. Mineralisaion was exended 10m or half way beween he las mineralised secion. Mineralisaion was exended 50m down dip from he las mineralised inercep. Silver Lake Resources Ld (ASX: SLR) Page 14 of 15

15 Sampling and assay echniques Diamond core was samples o geological boundaries and hen cu in half using a diamond cuing blade and submied for assay. RC samples are iniially colleced every 4m and hen 1m splis aken for samples ha reurn an assay greaer han 0.1g/ Au. Deails of he sampling echniques from he hisoric drilling are no known. Sample preparaion and assaying for he SLR samples was compleed by Ulrarace laboraories in Perh. All assays were deermined by he fire assay mehod using a 40g charge wih a lower deecion limi of 0.01ppm Au. Bulk Densiy Bulk Densiy has been assigned o he resource using inerpreed weahering surfaces deermined from drill hole logging. The following values were used for he respecive zones. Oxide - 2.5/m³ Transiional - 2.8/m³ Fresh 3.1/m³ Fresh Come Upper lodes - 3.2/m³ Fresh Come Lower lodes - 3.4/m³ Values for he oxide and ransiional zones were based on hisoric daa from previous resource esimaes. The value for he fresh mineralisaion was based on bulk densiy values colleced by SLR from diamond drill core using he waer immersion echnique. Esimaion A hree dimension block model was creaed and gold grade esimaed ino he inerpreed mineralised oulines using Inverse Disance Squared grade esimaion. Only RC and Diamond drill daa was used and sample lenghs were all composied o even 1m lenghs before esimaion. High Cus Saisical analysis was used o deermine high grade cus o apply o he composie daa. Various high grade cus, ranging from 5g/ Au o 70g/ Au have been applied o he differen lodes and deposis. The resource was repored a a 1g/ cu off for maerial above he 300mRL (150m below surface) and 2g/ for maerial below 300mRL. Meallurgical consideraions Meallurgical esing has been compleed on he samples colleced from he Come zones, wih resuls showing recoveries in excess of 90% from convenional CIL processing. Silver Lake Resources Ld (ASX: SLR) Page 15 of 15