Silver Lake Resources has made two dozen positions redundant at its gold operation in the Eastern Goldfields that will result in $3.5 million in savings each year.
Following a review into the operational and exploration requirements for the combined Mount Monger and Randalls operations, Silver Lake said it had made 24 positions redundant, and slashed exploration expenditure in the area, which includes the Aldiss project, from a combined $33 million to $18 million.
The review was part of an overall update on Silver Lake’s integration process following the completion of its merger with Integra Mining .
Integra’s directors all resigned at the start of the year, and the company was delisted from the local stock exchange earlier this week. Silver Lake added that the integration of required Integra employees into its offices was well advanced, and would result in savings of about $5 million each year.
A further $3 million to $4 million in savings would also be reached by replacing current diesel generators at the Mount Monger gold mine with mains power.
The savings are part of a broader aim to achieve between $30 million to $40 million of operational and corporate synergies each year.
Silver Lake also announced pro-forma gold sales for the December quarter from the combined Mount Monger operations was 45,495 ounces, with carryover bullion on hand totalling 4764oz.
The miner’s quarterly report will be released later this month.
Shares in Silver Lake closed down 4c to $2.95 today.
