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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
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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
Page 2
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.
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1. Company Overview
2. Business Results
3. Strategy and Objectives
4. Mount Monger Operations
5. Murchison Projects
Agenda
Page 3
6. Finance
7. Summary
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Company Overview
� ASX Code SLR
� Issued Securities 153.6M shares
� Market Cap $108M (@ $0.70)
� Unlisted Options 26.3M
� Cash & Bullion $20.0M (30 June 2009)
� Directors Les Davis - Managing Director
Page 4
Chris Banasik - Director Exploration and Geology
Paul Chapman - Chairman
Peter Johnston - Non Executive Director
Brian Kennedy - Non Executive Director
David Griffiths - Non Executive Director
Agenda item 1
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Capital Structure
Investor Shares (M) %
Eye Investment Fund Ltd 15.2 9.9
Sprott Asset Management 11.9 7.8
Ashok Parekh Group of Companies 6.0 3.9
Wright Family 5.0 3.3
20.0
40.0
60.0
80.0
100.0
120.0
0.20
0.30
0.40
0.50
0.60
0.70
0.80
MC
AP
:A$
M
A$
pe
r sh
are
Share Price & MCAP
IPO (Nov 2007)
Page 5
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
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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
Page 6
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.
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� 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)
Page 7
� 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
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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 -
Page 8
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
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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
Page 9
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)
Page 10
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
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CORPORATE STRATEGY
� Build a disciplined, low cost, long life, gold business
BUSINESS OBJECTIVES
� Multiple mines and multiple mining centres
Strategy & Objectives
Page 11
� Ounces and margin
� Exploration growth
� Sound financial position
Agenda item 3
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Mount Monger - The Old
Page 12
Miners resting under shade at Mount Monger 1922
Agenda item 4
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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
Page 13
� 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
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Daisy Milano - Perception
450 m
etre
s
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Mined out areas Minable resourceFor
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Daisy Milano - Reality
550 m
etre
s
Page 15
Mined out areas Current mining areas Planned mining areasFor
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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)
Page 16
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
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Christmas Flat - 1958
Page 17
Haoma 1958Photo supplied by David Reed
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Christmas Flat - 2009
HaomaChristmas Flat Open Pit
Maranoa
Austin
Page 18
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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
– 4m at 9.3 g/t Au from 20m
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– 8m at 4.2 g/t Au from 26m
– 7m at 6.8 g/t Au from 30m
– 6m at 4.8 g/t Au from 56m
– 10m at 6.8 g/t Au from 60m
– 4m at 10.0 g/t Au from 70m
– 6m at 5.4 g/t Au from 85m
– 18m at 2.8 g/t Au from 88m
� Finalising mining study:
– metallurgical test work
– production early 2010
Magic pit shell and mineralised zone
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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:
Page 20
– mains power
– process water
� 96% recovery (+80% via gravity circuit)
� Feed sources:
– 180,000 tpa from underground
– 120,000 tpa from open pit
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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:
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� 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
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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
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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)
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Daisy Milano
>1,000 oz per vertical metre
Page 23
Currently developed to 500 metres below surface
Next drilling campaign down to 800 vertical metres
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Daisy East
Initial ore zone (~40 metres east of Daisy Milano)
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Emma
Initial ore zone (~70 metres east of Daisy Milano)
Page 25
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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)
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Rosemary 5 Stamp Battery (Circa 1900)
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Wooden uprights & fly wheel
Consistent throughput of 8 tonnes per day
Entrepreneurially designed drive mechanism
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Leslie
� Located 2 km north of Daisy Milano
� 16 hole RC stratigraphic programme :
– little historical information
– limited underground workings
� Intersected high grade zone:
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� 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
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Mount Monger Fly Through
Page 29
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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
Page 30
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
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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
Page 31
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
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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
Page 32
� 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
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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:
Page 33
– 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
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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
Page 34
� Definitive feasibility study in progress:
– low capital options
– reviewing milling options
Agenda item 5
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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)
Page 35
0
500,000
1,000,000
1,500,000
-
0.5
1.0
1.5
2.0
Source: MinMet Data Oct 2008
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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
Page 36
� 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
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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:
Page 37
– 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
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Mount Monger - The Old
Page 38
Miners resting under shade at Mount Monger 1922For
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Mount Monger - The New
“Unlocking the potential of a 100 year time warp”
Page 39
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Presentation Appendix
www.silverlakeresources.com.auABN: 38 108 779 782
ASX: SLR
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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
Page 41
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
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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:
Page 42
Contact:
Les Davis
Managing Director
Mobile: 0428 273 501
Chris Banasik
Director of Exploration and Geology
Mobile: 0428 956 911
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