Silver Lake to defer Murchinson gold operations

Silver Lake Resources has stated it will defer underground development at its Murchinson operations for a year, cutting jobs in the process.

It comes as the company seeks to reduce costs across the business.

In a company statement, Silver Lake explained that "due to the current challenging gold price environment the Murchinson gold operations have been optimised to produce gold from open pit operations in FY14 and defer development of the underground Caustons mine for approximately 12 months".

Initial ore from the underground mine was forecast for the third quarter of this year.

Silver Lake says "underground development at the Caustons mine is now in the process of ceasing and will be put on care and maintenance in readiness for a start-up at a later point", adding that "this will result in some positions being made redundant".

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