The Silver Lake Resources Limited. (ASX: SLR) share price is moving higher today following an announcement from the ASX gold producer.
This morning, Silver Lake revealed that further high-grade mineralisation had been identified within the key growth corridors of its Mount Monger operation.
The Silver Lake share price has performed extremely well over the last 12 months, increasing by an incredible 206%. At the time of writing, shares are up 2.68%.
Mount Monger strategy
Silver Lake's exploration strategy at Mount Monger targets established and proven mineralised corridors. This is to deliver extensions to existing mines and identify the next generation of mines proximal to existing mining and services infrastructure. Ultimately, the aim of the strategy is to drive both life of mine sustainability and margin growth.
The gold producer's recent focus has been to progress three discoveries through to advanced exploration projects. These are Easter Hollows at the Daisy Complex, Santa at the Mount Belches Mining Centre and Tank South at the Aldiss Mining Centre.
The continued exploration success of these projects has led to investment decisions accessing Easter Hollows and Santa Underground. At Tank South, the most recent discovery, a maiden Inferred Resource, was declared in August 2019, only 6 months after discovery following an intensive and targeted drill program.
The results of further Mount Monger drilling released to the market today provide further support for these discoveries and the potential for extensions beyond known mineralisation.
Silver Lake commented that these discoveries continue to demonstrate the endowment of proven mineralised corridors at all three Mount Monger Mining Centres and the potential to host further discoveries.
Recent quarterly update
In January, Silver Lake released its December quarterly update reporting record production of 68,519 ounces of gold and 691 tonnes of copper. This was driven by strong production at both its Mount Monger and Deflector operations.
In light of the strong quarter, management upgraded its sales guidance. In this, the company now expects FY20 sales to be between 240,000 ounces and 250,000 ounces of gold equivalent, up from its previous guidance of 215,000 ounces to 230,000 ounces.
The company also lowered its costs guidance for the full year, now expecting an average all-in sustaining cost in the range of A$1,300 an ounce to A$1,350 an ounce.
