The deal with an unnamed private consortium was sealed in late October, but hinged on a six week due diligence and financing period that expired last week.

With the sale now terminated, Silver Lake said it was considering its options for the mill and associated infrastructure.

As part of these efforts, it said it would look to re-engage with parties that previously expressed an interest in acquiring the assets.

The unnamed consortium previously committed to paying $A5.5 million in cash for Lakewood.

A 2% gross royalty on minerals mined or recovered from two leases was also part of the deal and a $500,000 deposit had already been transferred.

Lakewood's sale has been part of a wider effort by Silver Lake to cut costs and offload assets.

The deal in October came just two weeks after the gold miner struck a $7.9 million deal with a private consortium to lease its other suspended plant at the Murchison gold operation.

It's unclear if the two consortiums were the same party.

Silver Lake bought Lakewood for $2.4 million in 2007 and paid around $2.6 million to refurbish it ahead of its maiden gold pour in April 2008.

The mill was put on care and maintenance in July at a cost of about $40,000 per month due to a decision to process all ore from the Mount Monger operations through the Randalls mill to lower costs.

It was put up for sale in July and expressions of interest closed in August.

Silver Lake shares were down 6.4% to 21.5c this morning.