Drilling Results Support Underground Potential of Tuckabianna West
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1 ASX ANNOUNCEMENT 14 December 2010 ABN: Drilling Resuls Suppor Underground Poenial of Tuckabianna Wes Highlighs Tuckabianna Wes is delivering highly encouraging resuls: - Muliple mineralised zones conained wihin he deposi - Drilling o dae has defined he mineralised zones over a 300 mere verical deph beneah he previously mined open pi - Mineralisaion remains open o he norh, souh and a deph - Srike exen o dae averages 350 meres in lengh High grade resuls including: meres a 18.3 g/ Au from 143 meres meres a 15.4 g/ Au from 170 meres meres a 16.2 g/ au from 94 meres meres a 5.7 g/ Au from 370 meres meres a 7.9 g/ Au from 290 meres meres a 4.5 g/ Au from 329 meres Upgraded resource o be announced in January 2011 Silver Lake Resources Ld ( Silver Lake ) is pleased o announce assay resuls from he Tuckabianna Wes deposi a he Murchison projec. Silver Lake s acceleraed exploraion is argeing o significanly increase resources a is Murchison Projec in Wesern Ausralia (refer o figure 1). This projec already has a combined resource of 13.7 million onnes a 3.0 g/ Au for 1.3 million ounces (refer o able 2). The Tuckabianna deposis are based around he 13 km long main and parallel zones ha are subjec o an ongoing drill programme (refer o figure 2). These deposis already have a resource of 8.9 million onnes a 2.4 g/ Au for 680,000 oz (refer o able 2) and have previously produced 375,000 oz of gold from open pi mines. Curren resources have been consrained by limied drilling, paricularly a deph, as only 3% of drill holes in he area are deeper han 100 meres (refer o figure 3). The Tuckabianna Wes deposi was he highes yielding open pi gold mine in he field producing 157,000 oz and has a curren resource of 150,000 oz (refer o able 2). The open pi was mined o a deph of 110 meres (refer o figure 4). Assay resuls (refer o able 1) have been received from he ongoing surface drilling programme. These resuls indicae coninuous high grade mineralisaion on muliple lodes beneah he previously mined open pi. The high grade inersecions range from 94 meres o 420 meres below he surface and remain open o he norh, souh and a deph (refer o figures 4 and 5). Silver Lake Resources Ld (ASX: SLR) Page 1 of 7
2 The nex phase of drilling is designed o infill he curren mineralised envelope. A resource upgrade for his deposi will be announced as par of he company s nex resource upgrade in January Figure 1: Murchison projecs locaion plan. Silver Lake Resources Ld (ASX: SLR) Page 2 of 7
3 Tuckabianna Main Zone 13 km srike lengh Poenial 13 km parallel line of mineralisaion Figure 2: Aerial view of he 13km long Tuckabianna main and parallel zones where previous open pi mines on he main zone produced 375,000 oz of gold. 3 Figure 3: Schemaic view of Tuckabianna showing limied drilling below 100 meres deph. Silver Lake Resources Ld (ASX: SLR) Page 3 of 7
4 Figure 4: Tuckabianna Wes Long secion showing laes inerceps in muliple zones. Figure 5: Tuckabianna Wes cross secion 8300 mn showing inerpreed mineralised zones. Silver Lake Resources Ld (ASX: SLR) Page 4 of 7
5 Hole ID Mine Grid Mine Grid Mine Grid From (m) To (m) Down hole Norhing Easing mrl Inerval (m) g/ Au 10TURC TURC TURC TURC148A TURC TURC TURC TURC TURC TURC TURC TURC TURC TURC TURC Table 1: Drilling and assay resuls for Tuckabianna Wes greaer han 1 g/ Au. These laes resuls suppor our view ha large resources exis beyond he previous shallow drilling in he Murchison. This is he firs phase of deeper drilling a Tuckabianna Wes and we are highly encouraged on he underground poenial of his deposi said Silver Lake s Managing Direcor Les Davis. Ongoing exploraion is focusing on exending curren resources ha have previously been 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 Mr Davis added. 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 5 of 7
6 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 and he Cosello open pi locaed 50 km souh eas of Kalgoorlie. Moun Monger has addiional muli mine poenial underpinned by emerging open pi producion from Wombola Dam, Wombola Pi and he Magic, deposi. Furhermore he exension of he Haoma and Rosemary lodes 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. In he Murchison ongoing exploraion is focusing on exending curren resources ha have previously been 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 and producion 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. Noes o Table 1: - Assay mehod is 40 gram fire assay. Silver Lake Resources Ld (ASX: SLR) Page 6 of 7
7 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 Wes 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 2: June 2010 Resource Invenory Rounding may give rise o uni discrepancies in his able Silver Lake Resources Ld (ASX: SLR) Page 7 of 7
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