PERTH (miningweekly.com) – Gold miner Silver Lake Resources has reported a slight fall in gold production during the three months to September.

Gold production in the September quarter reached 59 935 oz, down from the 62 126 oz delivered in the June quarter, with production at the Deflector operation increasing from 25 369 oz to 27 799 oz in the same period, offset by a decline in production from Mt Monger, from 36 757 oz to 21 427 oz.

The Sugar Zone asset also contributed 10 709 oz of gold during the quarter, as progress was made on the Phase 1 capital projects. Regulatory permits have been received to increase mine and mill capacity at Sugar Zone to 1 400 t/d and 1 500 t/d respectively.

Group gold sales for the quarter reached 58 794 oz, and 246 t of copper, at an average sales price of A$2 502/oz and an all-in sustaining cost (AISC) of A$2 052/oz. This compared with group sales of 60 617 oz gold and 516 t copper in the June quarter, at a gold sales price of A$2 275/oz and AISC of A$1 478/oz.

Silver Lake on Friday told shareholders that the company had made good progress in a project and development intensive quarter across its portfolio. The investment will deliver access to new high grade production fronts within the Western Australian assets and the upgrade to process and surface infrastructure at the Sugar Zone are essential to position the operation to maximise the value of the delineated ore reserves and mineral resources.

The miner said that the investment also reduced the threshold to commercialise potential exploration success at the Sugar Zone as Silver Lake commences its near mine and regional exploration programmes.

The company has maintained its sales guidance for 2023 at between 260 000 oz and 290 000 oz, at an AISC of between A$1 850/oz and A$2 050/oz.

Production will be weighted to the second half across the portfolio with higher grade scheduled at both Western Australian assets and the scheduled introduction of new underground mining fleet into the Sugar Zone mine, particularly following the receipt of permit amendments for higher mining and processing rates during the quarter.

Meanwhile, Silver Lake told shareholders that the operating environment continued to be challenging with skilled labour availability, absenteeism and constrained supply chains impacting all operations at various stages throughout the quarter. The company said that it would continue to respond to the operating climate to preserve margin over ounces, particularly given the multiple feed sources available at its Western Australian operations.