Silver Lake Resources Limited (SLR) –Building up to >70,000ozpa Gold Production by the end of 2009

• Silver Lake Resources (SLR) has four project areas in WA, being Mount Monger (which includes Daisy-Milano : a high grade underground mine that has started production at an expected ~35,000ozpa), Murchison (being Comet, Tuckabianna & Moyagee), Rothsay (a small copper-gold mine) and the grass roots Copper Lakes.
• SLR has a target of producing at 150,000ozpa within 3 years (2011), which could be achievable, based on possibly 50,000ozpa to 70,000ozpa from Mount Monger and a mining operation at Comet/Tuckabianna (although Mount Monger could be capable of achieving 100,000ozpa in its own right).
• SLR appears to have significant upside potential with both of its current main project areas of Mount Monger’s Daisy-Milano, and Comet/Tuckabianna apparently capable of exceeding expectations in production and grade. Also on a market cap comparison basis to its peers, SLR appears to be well undervalued and capable of achieving a market cap > A$120m.
• SLR poured their first gold bar on 30 April 2008, at their own 300,000tpa Lakewood plant near Kalgoorlie as part of an initial expected treatment rate of 75,000tpa at 15g/t (35,000oz to 40,000ozpa) from the Daisy-Milano lode. The remainder of the mill capacity is expected to be fed from possible open cuts followed by underground mining one of the >10 other lodes that have shallow workings.
• At Comet and Tuckabianna, SLR are evaluating re-opening the mines as underground operations, which was considered prior to their closure in 1997, but not undertaken due to the weakening gold price and other distractions. SLR has started a PFS on its Murchison assets (Comet, Tuckabianna and Moyagee) which it expects to complete in the December Quarter 2008.
• SLR are also evaluating the old Rothsay copper-gold mine that closed in 1991, after limited underground operation, and their Copper Lakes prospect.

Albidon Limited (ALB) – Increasing Munali’s Production beyond 10,000tpaNi

• Albidon’s share price closed at A$0.56 on 10 October 2008, only 6c higher than its 50c listing price in March 2004. During the past 4 ½ years, Albidon discovered one of the world’s lowest cost nickel mines in Zambia, financed, constructed and brought it into stoping production by September 2008. Even at the current nickel price of US$5.2/lb, Albidon has an NPV 3 x its current share price, at A$1.70/share.
• Albidon has announced an expansion from 0.9mtpa to 1.2mtpa using the available capacity in the circuit, being the flash flotation (expected 16% to 20% recovery) and additional tanks, raising nickel production to ~10,000tpaNi from MQ 2009.
• Although the initial stoping grades appear likely (as expected) to average ~1%Ni, the southern end of the orebody appears to be much richer (at ~2% to 3%Ni) being different nickel mineralisation (similar to PAN’s Savannah) comprising of small country-rock breccia fragments in massive nickel (that may plunge northwards).
• ALB is undertaking a number of studies aimed at increasing production, such as DMS of the lower grade 0.3% to 0.5%Ni fraction (doubles the grade before adding it to the main mill feed), sinking a decline into Voyager (and probably linking to Enterprise North for greater flexibility), and examining possible open-cuts at Intrepid and elsewhere on the current northern extremities of the intrusion.
• There appears to be increasing evidence that the intrusion and the orebody plunges under limestone cover to the north. Recent geophys has identified possible deeper extension targets to the north and a possible faulted block to the south, both of which are expected to be drilled during December Quarter 2008.

Mineral Deposits Limited (MDL) – Bringing Sabodala in Senegal into Gold Production at ~170,000ozpa from January 2009

• Mineral Deposits (MDL) has two company-making projects in Senegal, West Africa. The first being its Sabodala Gold Project is under construction and expected to pour its first bar of gold by January 2009. The second is the Grande Côte Zircon (mineral sands) Project which has yet to complete financing (possibly in mid-2009), enter construction and move into production.
• The rated (hard rock) design capacity of the Sabodala’s Ausenco constructed plant is 2mtpa, which is expected to achieve the usual 20% above capacity rating for throughput ~2.4mtpa. However, there are a number of additional oxide sources (including the skin over the orebody) that could take the initial throughput closer to 3mtpa, and the plant has clearly been designed for expansion.
• Sabodala expects to produce ~170,000oz (from 2mtpa at ~3g/t) in its first year (CY09). However, unexpected mineralisation at up to 10g/t has already been encountered in the pre-strip, and with the pit starting on the historical mine that averaged ~4.5g/t, the first year of production could be >190,000oz.
• There appear to be many similarities between Sabodala’s and Avoca’s gold mineralisation at Higginsville with flats and steeply dipping lodes in gabbros and volcanoclastics, plunging northwards. The mine life could be >10 years with additional higher grade underground components (initially mining one of the flats in the walls of the pit in years 5 to 8, being possibly ~400,000tpa at ~5g/t).
• MDL are increasing their understanding and interpretation of the mineralisation controls in the Sabodala pit, before extending that knowledge into the regional discoveries (some of which appear to have potential).