Silver Lake hits gold target

Gold miner Silver Lake Resources has posted above-guidance sales for the year to June, while Red 5 says it is on track to meet its production forecast for the 2018 calendar year.

Silver Lake reported gold output of 157,936 ounces at its Mount Monger operations near Kalgoorlie for FY18, along with sales of 151,250oz at an all-in sustaining cost of $1,289/oz.

In March, the company upgraded its annual sales guidance to 145,000-150,000oz.  

The FY18 production represented a 16 per cent increase on the previous year.

Silver Lake recorded gold production of 42,258oz in the June quarter.

The company also provided a sales guidance for FY19 of 140,000-150,000oz at an AISC of $1,350-$1,390.

Shares in Silver Lake were up 0.87 per cent at 58 cents each at 12.30pm AEDT.

Meanwhile, Red 5 produced 18,719oz of gold at its Darlot project in the June quarter at an AISC of $1,496/oz. It produced 48,259oz in FY18.

The company also said it had achieved a daily processing record in June with 3,249 tonnes milled, which equates to 1.1 million tonnes annual throughput.

Managing director Mark Williams said the company remained on track to hit its 2018 guidance of 85,000-95,000oz.

“During the June quarter, we continued to lay the foundations for our WA gold operations to continue their ramp-up,” he said.

“We believe that we are firmly on track to achieve this goal thanks to the significant ongoing investment in both mine development and exploration during the quarter.

“On the mining front, Darlot delivered another good performance during the quarter, albeit with lower head grades due to the current mining sequence.

“At King of the Hills, the ramp-up of mining continued during the quarter and we are confident that this operation will hit its straps in the September quarter with numerous high-grade stopes in the mine plan.”

Shares in Red 5 were off 14.1 per cent at 6.7 cents each.