Silver Lake s Mt Monger mine near Kalgoorlie. Picture: Mary Mills/The Kalgoorlie Miner.
Silver Lake's Mt Monger mine near Kalgoorlie. Picture: Mary Mills/The Kalgoorlie Miner.

UPDATE 2.35pm: Gold miner Silver Lake Resources says further jobs will go when it closes its Lakewood mill near Kalgoorlie.

The unspecified number of job losses follows the miner's announcement in February that it would close its Murchison project north of Mt Magnet, resulting in the loss of 42 jobs.

Silver Lake said the Murchison operation would be placed on care and maintenance this month once the gold in circuit had been recovered.

It said all available ore sources would be processed at the Randalls mill 65km south east of Kalgoorlie from this month.

"This maximises head grade at the higher throughput Randalls mill and reduces unit cost per tonne milled and transport costs compared to processing at Lakewood Mill," the company said.

"Once the gold in circuit has been stripped from Lakewood mill in July, the mill will be placed on care and maintenance.

"Unfortunately, this will result in the loss of a number of employee and contractor positions."

Silver Lake said it would cost $40,000 a month to keep the mill on care and maintenance and it had received several unsolicited expressions of interest to either use or buy the mill.

"A review will be conducted to assess these options and to identify additional interested parties," the company said.

"The outcome of this review is expected by the end of the September 2014 quarter."

On a more positive note, the company said gold sales from its Mount Monger operations for the year ending June 30 was 172,838 ounces compared with guidance of 160-170,000 ounces.

Full-year gold sales for the group totalled 217,349 ounces, which included sales from the Murchison gold operation of 44,511 ounces.

Silver Lake shares closed down 2.5 cents, or 4.5 per cent, at 53 cents.

The West Australian

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