for personal use only - asx · mining engineer with extensive underground mining and project...

Diggers & Dealers Mining Forum

August 2009

“Building A Mid Tier Gold Company”

Les Davis - Managing Director

www.silverlakeresources.com.auABN: 38 108 779 782

ASX: SLR

For

per

sona

l use

onl

y

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 conclusionscontained in this presentation.

To the maximum extent permitted by law, none of Silver Lake Resources Limited, its directors, employees or agents, advisers, nor anyother person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them orany 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 ofany security, and neither this presentation nor anything in it shall form the basis of any contract or commitment whatsoever. Thispresentation may contain forward looking statements that are subject to risk factors associated with gold exploration, mining andproduction businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a

Important Notice and Disclaimer

variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including butnot limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss ofmarket, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financialmarket 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 MrChristopher Banasik who is a Member of the Australasian Institute of Mining and Metallurgy. Any statement herein, direct or implied, asto a potential gold deposit is conceptual in nature and a reference to the targeted gold potential and not to any JORC compliant MineralResource. Mr Banasik is a full time employee of Silver Lake Resources Ltd, and has sufficient experience which is relevant to the styleof mineralisation under consideration to qualify as a Competent Person as defined in the 2004 edition of the JORC Code. Mr Banasikhas given his consent to the inclusion in this presentation of the matters based on the information in the form and context in which itappears.

For

per

sona

l use

onl

y

1. Company Overview

2. Business Results

3. Strategy and Objectives

4. Mount Monger Operations

5. Murchison Projects

Agenda

6. Finance

7. Summary

For

per

sona

l use

onl

y

Company Overview

� ASX Code SLR

� Issued Securities 153.6M shares

� Market Cap $108M (@ $0.70)

� Unlisted Options 26.3M

� Cash & Bullion $20.0M (30 June 2009)

� Directors Les Davis - Managing Director

Chris Banasik - Director Exploration and Geology

Paul Chapman - Chairman

Peter Johnston - Non Executive Director

Brian Kennedy - Non Executive Director

David Griffiths - Non Executive Director

Agenda item 1

For

per

sona

l use

onl

y

Capital Structure

Investor Shares (M) %

Eye Investment Fund Ltd 15.2 9.9

Sprott Asset Management 11.9 7.8

Ashok Parekh Group of Companies 6.0 3.9

Wright Family 5.0 3.3

20.0

40.0

60.0

80.0

100.0

120.0

0.20

0.30

0.40

0.50

0.60

0.70

0.80

MC

AP

:A$

M

A$

pe

r sh

are

Share Price & MCAP

IPO (Nov 2007)

Directors 25.4 16.5

Total 63.5 41.4

0.0

20.0

0.00

0.10

Au

g-0

8

Se

p-0

8

Oct

-08

No

v-0

8

De

c-0

8

Jan

-09

Fe

b-0

9

Ma

r-0

9

Ap

r-0

9

Ma

y-0

9

Jun

-09

Jul-

09

For

per

sona

l use

onl

y

Senior Management Team

� DAVE CROCKFORD

Resident Manager (Mount Monger Operations)

Mining Engineer with previous roles at MPI Mines Black Swan Nickel Mine and held the position of Underground Manager with Leviathan Resourcesin Coolgardie. Extensive experience in narrow vein mining methods and contract mining.

� GRAHAM CREW

Group Mining Engineer

Mining engineer with extensive underground mining and project management experience in Australia and overseas. Held senior operationaland management positions with Macmahon Underground, Placer Dome, Dyno Nobel, Emperor Mines Limited, Perilya Limited and AMC Consultants.

� GARETH SOLLY

Chief Geologist (Mount Monger Operations)

Geologist with extensive experience in underground and open pit mining across a range of commodities. Held senior management positions with

Geologist with extensive experience in underground and open pit mining across a range of commodities. Held senior management positions withOnesteel and was recently Geology Manager for Norilsk at Black Swan Nickel .

� ADRIAN HALL

Mill Manager (Lakewood Gold Processing Facility)

Metallurgist with vast experience in research, development and commissioning of milling operations to increase extraction and recovery, improved throughput capacity and reduced operating costs. Experienced in multi commodities including gold, copper, nickel, cobalt and uranium.

� PETER ARMSTRONG

Chief Financial Officer

25 years industry experience including senior commercial management roles with Normandy Mining, WMC and Newcrest. Has experience across a range of commodity businesses including gold, nickel, copper, coal and iron ore.

For

per

sona

l use

onl

y

� H2 2007 Acquired projects (830,000 oz Au JORC resource)

Acquired 300,000 tpa processing facility

First ore production - Daisy Milano

� H1 2008 Commenced drilling

Commissioned processing facility

First gold pour

Milestones

(ASX Listing: November 2007)

� H2 2008 Ramped up to 40,000 oz Au per annum rates

Positive cashflow

� H1 2009 Payback of Daisy Milano & Lakewood Gold Processing Facility

Commenced open pit production

Discovery of Daisy East & Emma

Producing >60,000 oz per annum rates

Total resources of 1.5Moz Au

Agenda item 2

For

per

sona

l use

onl

y

08/09 Financial Year Results

Area Unit 08/09 07/08*

Underground - High Grade Tonnes Mined (kt) 151 28

g/t Au 10.0 10.2

Ounces Mined (koz) 48.6 9.1

Underground - Low Grade Tonnes Mined (kt) 9.0 -

g/t Au 1.6 -

Ounces Mined (koz) 0.5 -

Open Pit Tonnes Mined (kt) 3 -

g/t Au 2.0 -

g/t Au 2.0 -

Ounces Mined (koz) 0.2 -

Total Mining Tonnes Mined (kt) 163 28

g/t Au 9.4 10.2

Ounces Mined (koz) 49.2 9.1

Processing Tonnes Milled (kt) 160 21

g/t Au 9.7 10.2

Ounces Fed (koz) 50.0 6.9

Recovery % 95.0 84.0

Ounces Produced (koz) 47.3 5.8

Gold Sales Ounces Sold (koz) 48.3 3.1

*Gold sales commenced in April 2008

For

per

sona

l use

onl

y

08/09 Financial Year Results

Parameter 08/09 07/08

Average price received (A$oz) 1,200 935

Revenue (A$M) 58.0 2.9

EBITDA (A$M) 19.1 N/A

NPAT (A$M) 10.7 -3.7

Operating Cash Cost (A$oz)1 647 N/A

Mine Development (A$oz) 95 N/A

Royalties (A$oz) 38 N/A

Total Cash Cost (A$oz)2 780 N/A

1: Current operating cash cost A$490 – A$540 per oz2: Current total cash cost A$680 – A$730 per ozNA: Not applicable due to production ramp upF

or p

erso

nal u

se o

nly

Resource Growth

0.8

1.0

1.2

1.4

1.6

1.8

Mill

ion O

unces

(IPO)

Murchison Resource

December 2007 June 2008 December 2008 08/09 Depletion0.0

0.2

0.4

0.6

0.8

Mill

ion O

unces

July 200908/09 Additions

SLR exploration cost <A$10 per ozSLR acquisition cost <A$7 per oz

Mount Monger Resource

For

per

sona

l use

onl

y

CORPORATE STRATEGY

� Build a disciplined, low cost, long life, gold business

BUSINESS OBJECTIVES

� Multiple mines and multiple mining centres

Strategy & Objectives

� Ounces and margin

� Exploration growth

� Sound financial position

Agenda item 3

For

per

sona

l use

onl

y

Mount Monger - The Old

Miners resting under shade at Mount Monger 1922

Agenda item 4

For

per

sona

l use

onl

y

Mount Monger - Background

� 50 km south east of Kalgoorlie:

– suppliers / personnel / infrastructure

� Historic production >400,000 oz Au:

– multiple underground and open cut mines

– high grade mineralised system

– unconsolidated gold field until 2003

– tenement boundary constraints

Daisy Milano Mine Site

� Producing from Daisy Milano underground mine:

– 198,000 tonnes @ 40.5 g/t Au (257,000 oz)

– 400 metre strike length

– >1000 oz per vertical metre

� Producing from Christmas Flat open pit:

– 474,000 tonnes @ 3.5 g/t Au (51,000 oz)

– Stage 1: 10,000 oz

– Stage 2: Mining studyFor

per

sona

l use

onl

y

Daisy Milano - Perception

450 m

etre

s

Mined out areas Minable resourceFor

per

sona

l use

onl

y

Daisy Milano - Reality

550 m

etre

s

Mined out areas Current mining areas Planned mining areasFor

per

sona

l use

onl

y

Quality of Resource - Underground

� Daisy Milano has the highest grade underground resource of Western Australian gold mines

� Growth will come from the product of margin and volume

3,500

4,000

4,500

35.0

40.0

45.0

Contained kozg/t Au

WA Underground Gold MinesResources (including reserves)

Oz (RHS)

Grade (LHS)

Source: Public Data July 2009

-

500

1,000

1,500

2,000

2,500

3,000

-

5.0

10.0

15.0

20.0

25.0

30.0

For

per

sona

l use

onl

y

Christmas Flat - 1958

Haoma 1958Photo supplied by David Reed

For

per

sona

l use

onl

y

Christmas Flat - 2009

HaomaChristmas Flat Open Pit

Maranoa

Austin

For

per

sona

l use

onl

y

Magic

� Located 2 km south of Daisy Milano:

– 597,600 tonnes at 2.9 g/t Au (56,200 oz)

� 20 hole RC programme:

– infill around historic information

� Near surface thick high grade mineralisation:

– 17m at 2.8 g/t Au from 19m









� Finalising mining study:

– metallurgical test work

– production early 2010

Magic pit shell and mineralised zone

For

per

sona

l use

onl

y

Lakewood Gold Processing Facility

� Located 45 km from Daisy Milano

and 5 km south east of Kalgoorlie

� Acquired November 2007:

– $2.4M

– refurbishment complete

– new gravity circuit

� 300,000 tpa capacity:

– mains power

– process water

� 96% recovery (+80% via gravity circuit)

� Feed sources:

– 180,000 tpa from underground

– 120,000 tpa from open pit

For

per

sona

l use

onl

y

Exploration

� Due diligence report (2003):

– 2.0 to 4.5Moz Au

– 9 independent zones <500 m depth

� Geology:

– multiple lines of mineralisation

– 10 km strike

� Past exploration:

� Past exploration:

– grossly under explored

– 3% of holes >100 m

– restricted due to multiple owners

� Exploration plan:

– near mine underground and open pit targets

– step out drilling

Daisy East & Emma discovery hole May 2009 – Drilled from 8 level Daisy Milano

For

per

sona

l use

onl

y

Multiple New Discoveries

100m

200m

Da

isy M

ila

no

Ro

se

ma

ry

3 level

5 level

40m 70m 120m

~900ovm

4 levelE

mm

a

Da

isy E

as

t

300m

400m

500m

600m

200m

Dep

th fro

m s

urfa

ce

8 level

16 level

23 level

26 level

Schematic view: Not to scaleOVM: Ounces per vertical metre

>1,000ovm

North

Mineralised zone at Daisy East: 0.2 metres at 135 g/t Au (4.7 oz/t Au)

For

per

sona

l use

onl

y

Daisy Milano

>1,000 oz per vertical metre

Currently developed to 500 metres below surface

Next drilling campaign down to 800 vertical metres

For

per

sona

l use

onl

y

Daisy East

Initial ore zone (~40 metres east of Daisy Milano)

For

per

sona

l use

onl

y

Emma

Initial ore zone (~70 metres east of Daisy Milano)

For

per

sona

l use

onl

y

Rosemary

Extensional zone (~120 metres east of Daisy Milano)

• Underground drilling programme in August 2009

• Two underground diamond drill rigs

• Covering 500 vertical metres

• 6 month programme (~$1.0 million)

• Develop 8 level cross cut (commenced)

• Strike drive all structures

(Daisy East commenced)

For

per

sona

l use

onl

y

Rosemary 5 Stamp Battery (Circa 1900)

Wooden uprights & fly wheel

Consistent throughput of 8 tonnes per day

Entrepreneurially designed drive mechanism

For

per

sona

l use

onl

y

Leslie

� Located 2 km north of Daisy Milano

� 16 hole RC stratigraphic programme :

– little historical information

– limited underground workings

� Intersected high grade zone:

� Intersected high grade zone:

– 4 metres at 20.7 g/t Au

– included 2 metres at 36.0 g/t Au

� Targeted drilling programme:

– September 2009 quarter

For

per

sona

l use

onl

y

Mount Monger Fly Through

For

per

sona

l use

onl

y

Multi Mine Operation & Potential At Depth

100m

10 kilometers

Bu

ll

Leslie

Cale

do

nia

n

Hao

ma

Dais

y M

ilan

o

Ro

sem

ary

Ho

bb

s

Sp

inif

ex

Lo

rna D

oo

ne

Co

ste

llo

Mir

ror

Mag

ic

Mag

ic S

ou

th

Fif

ty G

ran

d

Pau

lin

e N

ort

h

Din

nie

Reg

gio

Dais

y E

ast

Em

ma

200m

Historic Mined Grade

Daisy Main 28.4 g/t

Milano (Upper) 33.8 g/t

Milano (Lower) 15.6 g/t

Rosemary 27.4 g/t

Haoma 28.9 g/t

Dinnie Reggio 32.6 g/t

North

200m

500m

400m

300m

600m

Dep

th

Caledonian 7.9 g/t

Pauline 11.8 g/t

Leslie 21.8 g/t

Bull 28.6 g/t

Average 23.7 g/t

Domain 1: Narrow vein high grade potential Domain 2: Shear hosted medium grade potential

Schematic view: Not to scale

For

per

sona

l use

onl

y

Low Capital Staged Mill Expansion

� Stage 1:

– ~$4.0 million

– 2 additional CIL tanks

– thickener

– upgrade cyclones

– critical spares

– awarded to Como Engineers

– online Jan 10

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

To

nn

es

Pe

r A

nn

um

Mill Capacity - Various Feed Sources

400,000 t10 g/t Au

130,000 oz pa

600,000 t4 g/t Au

77,000 oz pa

500,000 t7 g/t Au

110,000 oz pa

-

Soft Standard Hard Very Hard

Stage 1

For

per

sona

l use

onl

y

Low Capital Staged Mill Expansion

� Stage 1:

– ~$4.0 million

– 2 additional CIL tanks

– thickener

– upgrade cyclones

– critical spares

– awarded to Como Engineers

– online Jan 10

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

To

nn

es

Pe

r A

nn

um

Mill Capacity - Various Feed Sources

� Stage 2:

– ~$4.5 million

– regrind mill

– additional gravity circuit

– electrical upgrade

– tailings storage600,000 t10 g/t Au

195,000 oz pa

600,000 t4 g/t Au

77,000 oz pa

600,000 t7 g/t Au

135,000 oz pa

-

Soft Standard Hard Very Hard

Stage 1 Stage 2

For

per

sona

l use

onl

y

Mount Monger - Summary

UNDERGROUND

� Daisy Milano:

– ~ 50,000 oz Au per annum

– significant high grade shoot south of dyke

– 5 year life of mine

OPEN PIT

� Christmas Flats:

– Stage 1: 10,000 oz Au

� Mining Studies:

– Magic, Costello & Lorna Doone

LAKEWOOD MILL

� Stage 1 expansion completed Jan 10

EXPLORATION

� Results to date are highly encouraging

� Highly prospective, under explored tenement holding

High Grade Mineralisation 21 Level at Daisy Milano

For

per

sona

l use

onl

y

Murchison Projects Summary

� 7,821,800 tonnes at 3.80 g/t Au for 965,400 oz

� Surrounded by multi Moz Au deposits

� 65 km strike

� Under drilled >100 m

� Exploration upside 3Moz Au

� Definitive feasibility study in progress:

– low capital options

– reviewing milling options

Agenda item 5

For

per

sona

l use

onl

y

Quality of Resource - Open Pit

� Murchison projects offer high grade open pit production

1,500,000

2,000,000

2,500,000

3,000,000

2.5

3.0

3.5

4.0

4.5

Contained ozg/t Au

WA Open Pit Gold MinesResources (inc reserves)

Oz (RHS)

Grade (LHS)

0

500,000

1,000,000

1,500,000

-

0.5

1.0

1.5

2.0

Source: MinMet Data Oct 2008

For

per

sona

l use

onl

y

Finance

� Financial position: (30 June 2009)

– Cash & bullion: $20.0M

– Strong cashflow ~$2.0M per month

– 08/09 NPAT: $10.7M

� No debt31.2 kg refined gold bar = 1,003 fine ounces

� No debt

� No hedging

� Corporate:

– consolidation inevitable

– mergers, joint ventures and acquisitions

Agenda item 6

31.2 kg refined gold bar = 1,003 fine ounces

Diggers & Dealers August 2009

For

per

sona

l use

onl

y

Why Silver Lake Resources?

� Experienced and capable team

� High grade producing asset:

– ~ 50,000 oz Au pa from underground

– ~ 10,000 oz Au pa from open pit

– 600,000 tpa processing facility

– lower quartile of total cash costs

� Additional open pit production:

– pipeline of economic resources

� Strong cashflow & profitable

� Significant exploration upside:

– 1.5Moz Au resource base

– 2 to 5Moz Au potential

� Growth:

– two large production centres

– multiple surface and underground mines

Gold Ore from Daisy Milano 23 Level

Agenda item 7

For

per

sona

l use

onl

y

Mount Monger - The Old

Miners resting under shade at Mount Monger 1922For

per

sona

l use

onl

y

Mount Monger - The New

“Unlocking the potential of a 100 year time warp”

For

per

sona

l use

onl

y

Presentation Appendix

www.silverlakeresources.com.auABN: 38 108 779 782

ASX: SLR

For

per

sona

l use

onl

y

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 117.1 41.3 155.7 36.7 32.7 38.5 44.0 44.7 63.2 197.8 40.5 257.4

Christmas Flat - - - 206.5 3.5 23.0 247.2 3.5 28.0 453.7 3.5 51.0

Costello - - - - - - 94.0 3.7 11.2 94.0 3.7 11.2

Lorna Doone - - - - - - 111.0 4.0 14.3 111.0 4.0 14.3

Magic - - - 348.4 3.2 35.4 249.2 2.6 20.8 597.6 2.9 56.2

As at June 2009

Total Mount Monger 117.1 41.3 155.7 591.6 5.1 96.9 745.4 5.7 137.5 1454.1 8.3 390.1

Comet - - - 1,709.1 3.6 198.3 572.2 5.1 92.9 2,281.2 4.0 291.2

Moyagee - - - - - - 820.2 8.5 224.2 820.2 8.5 224.2

Tuckabianna - - - 2,327.1 2.8 212.1 2,393.2 3.1 237.9 4,720.3 3.0 450.0

Total Murchison - - - 4,036.2 3.2 410.4 3,785.6 4.6 554.9 7,821.8 3.8 965.4

Rothsay - - - - - - 591.2 7.0 132.9 591.2 7.0 132.9

Total Silver Lake 117.1 41.3 155.7 4627.8 3.4 507.3 5122.2 5.0 825.3 9,867.1 4.7 1488.4

For

per

sona

l use

onl

y

Contact

Head Office:

31 Malcolm Street

West Perth WA 6005

Phone: +61 8 6313 3800

Fax: +61 8 6313 3888

Website: www.silverlakeresources.com.au

Contact:

Contact:

Les Davis

Managing Director

Mobile: 0428 273 501

[email protected]

Chris Banasik

Director of Exploration and Geology

Mobile: 0428 956 911

[email protected]

For

per

sona

l use

onl

y

for personal use only - asx · mining engineer with extensive underground mining and project...

Documents