Paydirt s Gold Conference. Perth March Les Davis - Managing Director ASX: SLR ABN:

Transcription

1 Paydirt s Gold Conference Perth March 2010 Producing, Exploring & Growing Les Davis - Managing Director ASX: SLR ABN:

2 Important Notice and Disclaimer Silver Lake Resources Limited has prepared this presentation based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Silver Lake Resources Limited, its directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it. This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this presentation nor anything in it shall form the basis of any contract or commitment whatsoever. This presentation may contain forward looking statements that are subject to risk factors associated with gold exploration, mining and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. The information in this presentation that relates to mineral resources and exploration results are based on information compiled by Mr Christopher Banasik who is a Member of the Australasian Institute of Mining and Metallurgy. Any statement herein, direct or implied, as to a potential gold deposit is conceptual in nature and a reference to the targeted gold potential and not to any JORC compliant Mineral Resource. Mr Banasik is a full time employee of Silver Lake Resources Ltd, and has sufficient experience which is relevant to the style of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 edition of the JORC Code. Mr Banasik has given his consent to the inclusion in this presentation of the matters based on the information in the form and context in which it appears. The information in this presentation that relates to exploration targets refers to targets that are conceptual in nature, where there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The information on exploration targets in this presentation are based on a conceptual range of targets as follows: Tonnage range: Grade range: Ounces: 20 million to 50 million tonnes 3 g/t Au to 8 g/t Au 2 million to 5 million 2

3 Investment Highlights Mount Monger - high grade, high margin gold production ~ 50,000 oz pa gold from underground (40.5 g/t resource) ~ 10,000 oz pa gold from open pit (3.5 g/t resource) 600,000 tpa processing facility targeting g sustained production of ~ 200,000 oz pa by 2014 Murchison - 965,000 oz Au resource potential for high grade open pit production (3.8 g/t resource) Strong production growth profile two large production centres potential for multiple surface and underground mines Significant resource upside 1.5Moz gold resource base 1 Three new discoveries 5.0Moz identified gold potential 2 Profitable $10.7 million NPAT in first full year of operation 1: Refer to slide 33 JORC Resource Inventory 2: Refer to slide 2 Exploration Targets Murchiso n Kalgoorlie Mount Monger 3

4 Company Overview ASX Code: SLR ASX 300 Index March 2010 Ordinary Shares million Market Cap (A$1.15) A$206 million Unlisted Options 24.3 million Range (12 month) A$ A$1.40 Cash and Bullion (31 Dec 2009) A$28.4 million Debt Directors Nil Enterprise Paul Value Chairman A$180 Chapman million Les Davis Managing Director Chris Banasik Peter Johnston Brian Kennedy David Giffith Director Exploration and Geology Non Executive Director Non Executive Director Non Executive Director Investor Shares (M) Sprott Asset Management Eye Investment Fund Ltd Parekh Group of Companies % Herschel Asset Management Wright Family Directors Top 10 + Directors

5 2009/10 Highlights Payback of Daisy Milano & Lakewood Gold Processing Facility Commenced open pit production at Christmas Flat Significant exploration results at Mount Monger & Murchison Three new Discoveries: Daisy East & Emma at Mount Monger & Genesis in the Murchison Producing 13 g/t Au from Daisy East (discovered July 2009) Awarded 2009 Gold Miner of the Year from Gold Mining Journal & Paydirt Record mine production in January 2010 of 8,400 ounces Doubled capacity at Lakewood Gold Processing Facility to 600, tpa (A$4.1million) On track for gold production of 60,000 to 70,000 ounces Admitted to ASX All Ordinaries & ASX 300 list of companies - March

6 Mount Monger Overview 50 km south east of Kalgoorlie a world class gold region (produced >60Moz) excellent access to suppliers, personnel and infrastructure Historic production >500,000 oz gold Daisy Milano produced >250,000 oz multiple underground and open cut mines high grade mineralised system unconsolidated gold field until 2003 Producing from Daisy Milano underground mine 198, g/t Au (257,000 oz) 400 metre strike length >1000 oz per vertical metre - very profitable Producing from Christmas Flat open pit mine 474, g/t Au (51,000 oz) Stage 1: 10,000 oz Stage 2: Mining study First class exploration potential targeting 2 to 4.5Moz 1 Kalgoorlie Lakewood Mill Mount Monger 1: Refer to slide 2 Exploration Targets 6

7 Mount Monger Operations 6 kg / tonne 3.0 m 2.4 m 35 m Daisy Milano Decline High Grade Mineralisation 21 Level at Daisy Milano Christmas Flat Open Pit 7

8 Daisy Milano - Producing ~50,000 oz per annum 550 metres Mine developed down to 28 level Mined out areas Current mining areas Planned mining areas 8

9 Daisy Deeps - Increasing Mine Life Drill down to 800 vertical metres potential for additional 300, oz resource 1 increase mine life >5 years Drilling completed March Quarter Results to date: 0.2m at 3,500 g/t Au 1.0m at 224 g/t Au 2.5m at 16 g/t Au 3.6m at 46 g/t Au 1.9m at 43 g/t Au 1.5m at 23 g/t Au 0.4m at 161 g/t Au 1: Refer to slide 2 Exploration Targets 9

10 Daisy East (discovered July 2009, 40 metres east of Daisy Milano) 8 level Daisy East ore drive Visible gold in Daisy East ore drive face Find and Mine Specimen Stone 10

11 Daisy East - Increasing in Size Drilling to date: defined mineralised structure >200 vertical metres extremely high grade to the south Results to date highly encouraging: 0.9m at 235 g/t Au 1.3m at 129 g/t Au 0.5m at 200 g/t Au 0.2m at 200 g/t Au Current status: 165 metres of ore development completed on 8 level ore driving commenced on 15 level developing down to 9 level drilling ongoing to define northern extent 11

12 Christmas Flat Dinnie Reggio Open Pit (previously mined) Christmas Flat - Stage 1 Open Pit Shell 10,000 oz Completion March 2010 Remaining 41,000 oz resource undergoing mining study Historic underground Haoma workings 12

13 Lakewood Gold Processing Facility Located 45 km from Daisy Milano and 5 km south east of Kalgoorlie Acquired November 2007 (300, tpa) $2.4M acquisition cost $5.6M on modifications & refurbishment $4.1M stage 1 upgrade to 600,000 tpa 600,000 tpa capacity mains power process water 96% recovery y( (+80% via gravity circuit) Feed sources 400,000 tpa from underground (hard rock) 600,000 tpa from blended rock up to 130,000 oz per annum Stage 2 upgrade ~A$4.0 million (dependent on mine plan) 600,000 tpa regardless of rock type up to 200,000 oz per annum 13

14 LGPF - At Acquisition, November

15 LGPF - February

16 Mount Monger Operations 16

17 Exploration Plan Objectives enhance highly successful discovery rate increase global resource from 1.5Moz 1 to 5Moz 2 two year time frame Achievements to date discovery cost <A$10 per oz Daisy East, Emma & Genesis discoveries excellent conversion of resource to minable oz Significant resource upside highly prospective, underexplored tenement holding 1.5Moz gold resource base 1 identified gold potential, ready to drill A$18 million programme (115 km drilling) every dollar is going into exploration low execution risk, resources are available activities on granted mining leases competitive rates for drilling and service providers Murchiso n Kalgoorlie Mount Monger 1: Refer to slide 33 JORC Resource Inventory 2: Refer to slide 2 Exploration Targets 17

18 Mount Monger - Growth Potential 2.0 to 4.5Moz gold potential 1 Anglo due diligence report (2003) 9 independent zones <500 m depth Multiple lines of mineralisation over 10km strike Grossly under explored along strike and at depth only 3% of holes >100 m mineralisation proven to 800 m Tenements consolidated &barriers removed tenement boundaries multiple ownership Numerous small historic mines majority were mined by prospectors shallow, small scale and inefficient lack of drilling 1: Refer to slide 2 Exploration Targets Multiple lines of mineralisation 18

19 Mount Monger - Exploration Plan Near Mine Daisy East, Emma & Rosemary extension Depth extensions to current & planned open pits Christmas Flat Magic Lorna Doone Regional exploration - 3 independent zones Big Bull to Dinnie Reggio Fifty Grand to Caledonian Lucky Strike to Magic 2 km strike in each zone Mineralisation stacked east west February to July 2010 Drilling targets 19

20 Daisy East, Emma & Rosemary DaisyMilano DaisyEast Emma Rosemary 40m 70m 120m 3level 100m Daisy East North ~900 ovm 4level 5level Emma Rosemary Extension 200m 8level 300m Depthfrom msurface >1,000 ovm 16level 400m Daisy Milano 25level 500m Schematicview:Nottoscale OVM:Ouncesperverticalmetre Mineralisation ConceptualTargetzones Daisy East - proof of concept is building, ongoing drilling programme covering 500 vertical metres 20

21 Murchison - Growth Potential Tuckabianna, Comet & Moyagee 7.8 million tonnes at 3.80 g/t gold for 965,400 oz Cu e Surrounded by multi million ounce gold deposits 65 km strike Under drilled >100 m Moyagee is a world class exploration project: 35 km long Lena shear zone Lena: 820, tonnes at 8.5 g/t Au = 224,200 oz 3Moz gold potential 1 Mount Magnet 1: Refer to slide 2 Exploration Targets 21

22 Murchison - Exploration Plan Tuckabianna targets Caustons South & Caustons North Tuckabianna West Deeps Tuckabianna Central Comet resource extensions Moyagee targetst Lena South Moyagee South Surface drilling programme combination RC and diamond drilling 60,000 drill metres 80 to 200 metre spaced sections along strike 50 to 450 metre deep holes Definitive feasibility study 150,000 oz base case production plan Comet & Northern pits Partial milling infrastructure at Tuckabianna 22

23 Tuckabianna - Potential at Depth 100 vertical metres 23

24 Genesis - New Discovery Tuckabianna main zone 13 km strike length produced 375,000 oz 7 open pit mines Genesis deposit located 200 metres east shallow, thick & high grade open north, south and at depth unexplored 13 km corridor significant upside potential 24

25 Genesis - Near Surface, Thick, High grade 9 metres at 1.8 g/t Au from 15 metres 200 metres 2 metres at 5.0 g/t Au from 19 metres 3 metres at t g/t /tau from 37 metres 4 metres at 7.3 g/t Au from 44 metres 6 metres at 4.0 g/t Au from 54 metres 2 metres at 4.6 g/t Au from 55 metres 25

26 Moyagee - Targeted Drilling Along Lena Shear Lena Resource Leviticus Prospect Lena shear: 35 km long on Moyagee tenements High grade mineralised system 2 mineralised zones within the Lena Shear >4 km of mineralised strike south of Lena resource Aeromagnetic image - Lena Red area is the shear zone 26

27 Lena - 224,000 oz at 8.5 g/t Au Lena Resource Outline RC drilling High grade resource, 600 metres of strike RC programme completed to the south covers 1 km strike on 50 metre centres assays pending 27

28 Leviticus Prospect 2.2 kilometres south of Lena Resource Shallow mineralisation 11 metres from surface Virtually unexplored, 3 historic holes Follow up drilling highly encouraging Thick & high grade 4.8 metres at 26.1 g/t Au from 58 metres 3.5 metres at 16.4 g/t Au from 65 metres Next phase of drilling, 50 metre centres north & south Potential for similar deposits along 35 km 28

29 Comet - Resource Extensions 3.8 metres at 5.4 g/t Au 1.4 metres at g/t Au 3.0 metres at 3.6 g/t Au 05metres 0.5 at 10.9 g/t Au 3.0 metres at 3.6 g/t Au 0.8 metres at 6.3 g/t Au 3.5 metres at 3.0 g/t Au Open along strike & down dip 29

30 Quality of Resource - Open Pit Murchison projects offer high grade open pit production g/t Au WA Open Pit Gold Mines Resources (inc reserves) Contained oz 4.0 3,000, Oz (RHS) 3.0 Grade (LHS) ,500, ,000,000 1,500,000 1,000, ,000 0 Source: MinMet Data Oct

31 Why Silver Lake Resources? Experienced and capable team High grade producing asset: ~ 50, oz Au pa from underground ~ 10,000 oz Au pa from open pit 600,000 tpa processing facility Increased production: pipeline of economic resources Cashflow & profitable Significant exploration upside: 1.5Moz Au resource base 1 A$18 million accelerated exploration plan 2 year resource target of 5Moz Au 2 Growth: two large production centres multiple surface and underground mines 31.2 kg refined gold bar As displayed at Diggers & Dealers August : Refer to slide 33 JORC Resource Inventory 2: Refer to slide 2 Exploration Targets 31

32 Presentation Appendix ASX: SLR ABN:

33 JORC Resource Inventory Measured Resources Indicated Resources Inferred Resources Total Resources Deposit Ore t 000s Grade g/t Au Total Oz Au 000s Ore t 000s Grade g/t Au Total Oz Au 000s Ore t 000s Grade g/t Au Total Oz Au 000s Ore t 000s Grade g/t Au Total Oz Au 000s Daisy Milano Christmas Flat Costello Lorna Doone Magic Total Mount Monger Comet , , Moyagee Tuckabianna , , , Total Murchison , , , Rothsay Total Silver Lake , As at June

34 Contact Head Office 31 Malcolm Street West Perth WA 6005 Phone: Fax: Website: Silver Lake Contact Les Davis Managing Director Mobile: ldavis@silverlakeresources.com.au Chris Banasik Director of Exploration and Geology Mobile: cbanasik@silverlakeresources.com.au 34

35 Daisy Milano - Grade Contours Diluted Mined Grades 30 to 15 g/t Au Mined Voids 15 to 5 g/t Au 5 to 3 g/t Au X Ore Access >3 g/t Au 35

36 Near Mine Targeted Resource Growth 1400 Daisy Milano Other Daisy East Emma Rosemary 1200,000ounces Daisy East, Emma & Rosemary extension Assumed 300 ounces per vertical metre Daisy Milano >1,000 ounce per vertical metre June 2009 June Refer to slide 2 Exploration Targets 2. Target resource growth at Daisy Milano includes Daisy Deeps 36

37 Targeted Production Profile 200 Daisy Milano Daisy Deeps Christmas Flat (OP) Magic (OP) Daisy East Emma Rosemary Christmas Flat (UG) Magic (UG) 150 Ou unce per Annum /10 10/11 11/12 12/13 13/14 14/15 1. Pending exploration success 2. Refer to disclaimer on slide 2 37