Blackham Resources closes in on first production target

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Blackham Resources (ASX: BLK) recently announced the results of the Definitive Feasibility Study (DFS) on the company’s Matilda gold project in Western Australia.

Blackham was eager to tell all and sundry about the results, as they confirmed robust near-term cash flows from the project, which the company is confident will enable it to benefit from the current strong Australian dollar gold price.

Blackham takes no short steps when comparing Matilda to its Western Australian development peers, claiming the project to be the most capital efficient, nearest term producer with the shortest payback.

The company is continuing with drill programs at Matilda, as well as at the Golden Age and Bulletin deposits, which it is carrying out with the aim of improving the length, quality and sustainability of the mine life.

The company is well on track to become Western Australia’s next gold producer and to achieve its stated goal of pouring the first gold from Matilda in August this year.

The very low capex required for the project is due to the substantial plant and infrastructure at site and the minor plant refurbishments required to re-start the project.

The results of the DFS produced a number of highlights, including:

Mining Inventory of 8.3 million tonnes at 2.9 grams per tonne gold for 767,000 ounces of gold;

Reserves of 6.1 million tonnes at 2.5g/t gold for 481,000 ounces of gold;

An initial Life of Mine beyond seven years with expected average annual production of 101,000 ounces per annum over the first five years of operation;

LOM C1 Cash Costs of $850 per ounce (US$600 per ounce);

Annual EBITDA at an Australian Dollar gold price of $1,600 per ounce of $58M (Yr1) and 62M (5yr Avg);

Pre-Production Capital Costs $32 million;

Anticipated Project Cash Flow of $234 million;

“If you look at the DFS it really does confirm the robust nature of the Matilda project and how capital efficient it is,” Blackham Resources managing director Bryan Dixon told The Resources Roadhouse.

“However, as impressive as the results currently stand, we are determined to work Matilda towards becoming a sustainable operation with an enhanced mine life.

“When compared to our Western Australian gold development peers, we stand up very well.

“We are the nearest-term producer, the most capital efficient, and we also have the quickest payback for shareholders.”

Recent history for Blackham has been good with the company being the second placed, best performing gold stock for 2015

“Although we have come off a reasonably low base we have risen over 300 per cent for the past year,” Dixon said.

“Over the same period the ASX Gold Index has risen 26 per cent.”

Blackham’s aims for Matilda are straight forward with the company’s obvious target being to bring the project into production of 100,000 ounces of gold per annum while maintaining a strong exploration focus to find new discoveries.

The company is also open to making opportunistic bolt-on acquisitions in order to keep the Matilda mill satiated.

“Our strategy is to bring Matilda into production focusing on the project’s soft oxides and high-grade free-milling gold reefs around Wiluna that will spike the grade profile,” Dixon explained.

“It is a low risk start up as all the free-milling ore will repay all the debt.

“Our exploration will continue to focus on all the reefs and continue to grow the base-load ore from the Wiluna and Williamson open pits.

“We have around five million tonnes of open pittable ore, which is significant because the Wiluna plant has never had the privilege of feeding on that amount of open pit ore.”

Blackham will re-commission the Wiluna gold plant feeding it base load free-milling ore from the Matilda mine followed by ore from the Williamson Mine.

This will be supplemented with higher grade quartz reef ores from the Golden Age underground and the Galaxy open pit.

The DFS identified the availability of a large amount of optionality of the current 3.3 million ounces at 4.6 grams per tonne Wiluna sulphides.

The study demonstrated these to be economic when the mill is running at capacity.

“That means it is all about having the right mine plan for the project,” Dixon explained.

“To ensure there is enough ore to keep the mill running flat out, a key part of that solution is having that five million tonnes of open pittable ore.”

During the DFS process, Blackham added an additional two and half years to the mine life from the Pre-Feasibility Study which greatly improved in the project’s economics.

The DFS also confirmed strong conversion of Inferred Resources into Indicated Resources and PFS Mineral Inventory into Reserves.

“As we have drilled that Reserve out over the past year we have achieved an almost one-for-one conversion from Scoping Study Inferred Resources through to Reserves and we are hoping we can maintain that statistic.”

Blackham Resources has worked feverishly over the past four years to consolidate the Wiluna Goldfield, where it currently holds a 780 square kilometre exploration tenement package that has historically produced over 4.3 million ounces.

The Matilda gold project is located in an ideal address, being smack bang in the heart of Australia’s largest gold belt, which stretches from Norseman to Wiluna and passes through Kalgoorlie and Leinster.

Blackham owns the Wiluna gold plant, gas power station, camp, borefields and underground infrastructure – which operated up until 2013 – 100 per cent.

“We have reconsolidated the Wiluna goldfield and have made the Matilda mine our main focus, which will be the predominant feed source for the mill in our earlier years of operation,” Dixon said.

“Matilda boasts a Resource of 45 million tonnes at 3.3 grams per tonne for 4.7 million ounces of gold.

“Reserves stand at 6 million tonnes at 2.5g/t for 481,000 ounces of gold.”

The Resources at the Matilda gold project were updated with the inclusion of results of drilling programs the company had undertaken up until December 2015.

Recently completed drilling programs undertaken at Matilda, Galaxy, Golden Age and Bulletin this year were not included in the DFS, however the company will include these when revising the Resources and Reserves prior to the commencement of production.

An aspect of Blackham Resources’ project portfolio that is often overlooked is that there are four very big geological systems in the Wiluna Goldfields.

There is the Wiluna mine itself, the quartz reefs that the old timers mined, the Matilda mine – which is the company’s main focus and an asset that nobody has really taken any great notice of for over twenty years and is now coming into its own – and then there is Lake Way.

Lake Way has only been subjected to a minimal amount of drilling compared to the other prospects, however it historically produced around 40,000 ounces with its previous owner, Newmont, spending a good deal of cash and time.

“There are some very big targets out on Lake Way and we are out there at the moment looking to unlock some more base load ore,” Dixon said.

Blackham Resources Limited (ASX: BLK)
… The Short Story

HEAD OFFICE
Level 2, 38 Richardson St.
West Perth WA 6005

Ph: +61 8 9322 6418
Fax: +61 8 9322 6398

Email: info@blackhamresources.com.au
Web: www.blackhamresources.com.au 

DIRECTORS
Paul Murphy, Bryan Dixon, Alan Thom, Greg Miles, Peter Rozenauers, Milan Jerkovic

MAJOR SHAREHOLDERS
Citicorp Nominees 13.2%
Orion Mine Finance 12.5%
Polo Resources 10.4%

Impact Minerals ready to up exploration ante in NSW

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THE DRILL SERGEANT: Impact Minerals (ASX: IPT) has set off a major ramp-up in exploration and development activity on its two flagship base and precious metals projects in New South Wales.

The increased focus comes as the company looks to quickly build on its string of high-grade discoveries on the projects over the past 18 months.

Impact has lodged two new exploration licence applications, expanding its exploration footprint sevenfold to 517 square kilometres at its Broken Hill project, located south and east of Broken Hill in NSW.

Impact has been busy carrying out technical work on the nature of the high-grade platinum group metal (PGM)-copper-nickel mineralisation and high-grade zinc-lead-silver mineralisation it has discovered at various prospects within the project, including Red Hill, Dora East and Platinum Springs.

This has identified the new licence areas as being prospective for similar styles of mineralisation.

A new three-tiered work programme across the whole project is now in progress.

Further east in the Lachlan Fold Belt, Impact is also completing final preparations for a new drill program in the April-June Quarter at its 100 per cent-owned Commonwealth gold-silver-base metals project located 100 kilometres north of Orange.

A program of Reverse Circulation (RC) and diamond drilling will test a number of geophysical and geochemical targets.

“The major expansion of our ground position at Broken Hill is a robust opportunity for Impact and its shareholders to significantly increase exposure to this very richly mineralised part of Australia,” Impact Minerals managing director Dr Mike Jones said in the company’s announcement to the Australian Securities Exchange.

“Our recent work has suggested there is significant potential in the newly acquired licences to host the same two styles of high-grade mineralisation that we have discovered in our original tenements, including very high-grade PGM-nickel-copper such as at Red Hill and Platinum Springs as well as very high-grade zinc-lead-silver or so called ‘Broken Hill-style mineralisation’ at Dora East.

“Amazingly, given how close our new ground is to Broken Hill, these areas have mostly been very poorly explored.

“Given the advances and discoveries Impact has made in a relatively short period of time on our existing licences, we are obviously very hopeful of continued success on this new ground.

“In addition we are in the final stages of preparing a drill program at Commonwealth, which is an absolute key project for us due to our success in quickly generating a significant number of high quality gold and base metal targets that could provide a platform for the discovery of new deposits as well as targeting potential extensions to the resource we defined last year of 720,000 tonnes at 2.8 grams per tonne gold, 48g/t silver and 1.5 per cent zinc.”

Email: info@impactminerals.com.au

Website: www.impactmnerals.com.au

Lithium Australia identifies new lithium sources at Ravensthorpe

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THE DRILL SERGEANT: Lithium Australia (ASX: LIT) recently completed at the company’s Ravensthorpe lithium project in Western Australia that resulted in the discovery of several additional lithium pegmatites.

The company now claims to have established the presence of at least 12 lithium pegmatites with potential for further discoveries, which in turn has increased the potential economic standing of the project.

The recent work also defined the Deep Purple and Phillips South prospects, in addition to the previously defined Horseshoe prospect.

Lithium Australia described the Deep Purple prospect as being comprised of a swarm of at least five lithium pegmatites, including two spodumene pegmatites similar in character to nearby Mt Cattlin.

The Phillips South prospect is said to be a large, under-explored area, in which the company’s recent fieldwork demonstrated the presence of outcropping lithium mineralisation and very high potential for further discoveries undercover.

Lithium Australia indicated it has additional fieldwork planned that will assist optimisation of future drilling programs.

“It is not surprising that we are finding abundant lithium pegmatites in the Ravensthorpe area,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“It has been long-known for its spodumene which is the focus of the nearby Mt Cattlin mining operations.

“We see the area as an important part of our thrust to develop a local lithium chemical industry.

“With the application of our 100 per cent-owned Sileach process, we have the ability to handle both the lepidolite and spodumene to produce lithium carbonate or hydroxide – critical inputs to the insatiable lithium battery industry.”

Email: info@lithium-au.com

Website: www.lithium-au.com

Blackham Resources continues high-grade quartz reef drilling hits

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THE DRILL SERGEANT: Blackham Resources (ASX: BLK) has received results from recent drilling activities at the company’s Golden Age underground mine, Galaxy open pit mine and from a maiden drill program at the Lake Way quartz reef prospect.

All three prospects are part of the company’s Matilda gold project near Wiluna in Western Australia.

The Golden Age mine comprises a high-grade free-milling quartz reef resource of 1.1 million tonnes at 4.4 grams per tonne gold for 150,000 ounces of gold.

Blackham drilled nine diamond core holes to define extensions to the Indicated Resource component.

The results returned high-grade extensions at Golden Age mine, including:

GAUD0016
1.5 metres at 47.8g/t gold;

GAUD0014
3m at 10.4g/t gold; and

GAUD0018
1m at 16.2g/t gold.

The Galaxy open pit mine is located 13 kilometres northwest from Blackham’s Wiluna gold plant.

Blackham completed 15 RC holes to infill Inferred Resource areas at the base of the preliminary DFS pit design, and high-grade mineralisation remains open down-plunge.

High-grade results at Galaxy outside the DFS pit include:

GARC0072
4m at 4.84g/t gold from 80m; and

GARC0077
4m at 4.48g/t gold from 83m and 4m at 5.43g/t gold from 102m.

The Lake Way Reef is a high-grade narrow-vein gold deposit located on a mining lease 3km north of the Wiluna plant by existing haul roads.

Blackham’s maiden drill program here targeted down-plunge extensions below historical workings.

The drilling encountered encouraging high-grades at Lake Way Reef, including:

LWRC0001
1m at 11.9g/t gold from 80m; and

LWRC0005
2m at 7.28g/t gold from 105m.

“Blackham’s exploration team have identified further drill targets ‘Golden Age offset’ and ‘Black Swan’, which together with Galaxy, Lake Way and Golden Age gold deposits form part of the 15 kilometre-long quartz reef trend,” Blackham Resources said in its ASX announcement.

“Blackham’s exploration program is designed to build on the existing Mineral Inventory with the goal of developing greater than 10 years of mine life at the Matilda gold project.”

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au

Gascoyne Resources firms up Dalgaranga potential with robust PFS results

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THE BOURSE WHISPERER: Gascoyne Resources (ASX: GCY) announced the completion of a Pre-Feasibility Study for the company’s 80 per cent-owned Dalgaranga gold project in the Murchison region of Western Australia.

The Dalgaranga gold project contains a Measured, Indicated and Inferred Resource of 23.7 million tonnes at 1.4 grams per tonne gold for 1.05 million ounces of contained gold.

Gascoyne explained the PFS has assumed it to be the 100 per cent owner of the project, with its current Joint Venture partner assumed to convert its 20 per cent interest to a 2 per cent NSR royalty.

The company said the PFS had greatly improved upon previous assessments of the project and is based on historical production records as well as studies completed by a number of independent consultants.

The PFS substantiated Dalgaranga to be one of the highest margin undeveloped gold projects in Australia, identifying it to be a technically and financially robust project with an initial life of mine (LOM) undiscounted pre-tax operating cash surplus of $360 million from revenue of $832 million.

Project development was based on two open cut mines, and a new conventional SAG milling circuit, gravity and carbon in leach processing plant with a throughput of 2.5 million tonnes per annum with estimated LOM Operating Cash Cost (C1) of $836 per ounce, and an estimated LOM all in sustaining cost (AISC) of $913 per ounce.

The project has come in with low pre-production Capital Costs of $75 million (including 15% contingencies) with payback estimated to occur within 12 months of production of 125,000 ounces in first full year of operation, (LOM average of 104,000ozpa).

The study estimates 547,000 ounces within the initial mine plan (12.1Mt at 1.4 g/t gold), with exceptional potential for Resource growth from initial Proved and Probable Ore Reserves of 442,000 ounces (10.1Mt @ 1.4 g/t).

An initial Mine Life of six years, not including nearby organic growth potential has also been established with NPV of $193 million and IRR 90 per cent.

Gascoyne will move directly to commence a full Feasibility Study, with completion expected during Q4 2016.

The company is currently carrying out exploration drilling at the nearby Hendricks discovery.

“The completion of the Pre-Feasibility Study and calculation of the initial Ore Reserve for the project is a considerable step forward for the company,” Gascoyne Resources managing director Mike Dunbar said in the company’s announcement to the Australian Securities Exchange.

“It confirms Dalgaranga will be a low cost and high margin WA gold development with very robust economics.

“The higher grades from the Golden Wings deposit along with the low all in sustaining costs in the first 18 months will allow very rapid payback of the pre-production capital costs and will set the project up to remain competitive at gold prices well below the current levels.

“The compelling technical and economic outcomes of the PFS have lead the Board to immediately approve the commencement of a Feasibility Study, which we are aiming to complete by the end of 2016 to allow an investment decision to be made in early 2017.

“While the PFS outlines a very profitable project that will produce over 100,000 ounces per annum for around six years, that is just the start for the project.

“Significant exploration potential still remains, which could add to the mine life and further enhance the project economics.

“The outstanding exploration potential has recently been highlighted by the discovery of the Hendricks gold mineralisation, less than two kilometres east of the proposed processing plant site, Gascoyne continues to explore this and other prospects and if exploration proves successful, the mine life will undoubtedly grow substantially.”

Email: admin@gascoyneresources.com.au

Website: www.gascoyneresources.com.au

St George Mining encounters encouraging gold hits at East Laverton

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THE DRILL SERGEANT: St George Mining (ASX: SGQ) has been encouraged by recent positive results it received from gold exploration at the company’s 100 per cent-owned East Laverton project in Western Australia.

St George recently completed drill hole OXRFC003 at the Oxford prospect, which ended in anomalous mineralisation to a depth of 306 metres downhole.

This was the first deep drill hole St George has completed in this area, which is situated on the southern portion of the Minigwal greenstone belt, and to the immediate northwest of the company’s designated high-priority Ascalon gold target.

According to St George, hole OXFRC003 encountered the base of the weathered profile at 42m downhole, and then intersected a series of structurally‐controlled alteration zones with variably anomalous levels of gold and copper mineralisation.

The alteration zones are present over a healthy portion of the drill hole, with anomalous gold and copper values present between 135m and the end of the hole at 306m.

St George has interpreted the gold and copper mineralisation encountered in OXRFC003 to be associated with epigenetic vein‐style mineralisation of the type commonly associated with Orogenic gold deposits.

The company considers it to be an important finding as this mineralised zone is completely open towards the high-priority Ascalon gold target, approximately 1,000m to the southeast along the Minigwal greenstone belt.

“The significant widths of anomalous mineralisation and alteration in OXFRC003 represent a signature typically encountered on the periphery of a large gold system,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“This is very encouraging as it appears to be linked to the Ascalon gold prospect to the immediate southeast, and further validates the potential for this target.

“The first ever drilling at Ascalon will commence in a few weeks.”

Website: www.stgm.com.au

Metalicity returns high-grade lithium field work results from Pilgangoora South

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THE DRILL SERGEANT: Metalicity (ASX: MCT) has received assay results from first pass field work, recently carried out on the company’s Pilgangoora South lithium project, located in the Pilbara Region of Western Australia.

The work included geological mapping and sampling, at the Stannum tenement (E45/4677).

The company’s efforts returned high-grade assays of up to 2.45 per cent lithium oxide (Li2O), while hyperspectral data processing and interpretation identified new targets considered to be prospective for spodumene at Stannum.

Metalicty collected a total of sixteen rock chip samples from the L1 and L2 prospects at Stannum, which were assayed by Bureau Veritas laboratories in Perth, using sodium peroxide fusion and Inductively Coupled Plasma (ICP) Optical Emission Spectrometry (OES)/ Mass Spectrometry (MS).

The company said the results confirmed the presence of lithium bearing rare metal pegmatites at the prospects, with Li2O results up to 24,544ppm (2.45 per cent) and tantalum pentoxide (Ta2O5) results up to 200ppm.

Metalicit also commissioned Mineral Spectra Mapping to undertake processing of Hyperspectral data for Stannum, which was flown for Talison Minerals in 2006 by HyVista Corporation.

The company explained the original processing of the data was to identify pegmatites, which has been confirmed, but not to discriminate between spodumene and other minerals present within the pegmatites.

This data has indicated distinct mineral zoning within the pegmatites leading Metalicty to believe that spodumene may be one of these minerals.

Areas of possible spodumene have been mapped using this data, which the company said correlate well with pegmatites identified through aerial photo interpretation and mapping, over a strike of approximately five kilometres within Stannum.

“Confirmation of high lithium assays, observed spodumene from only one kilometre of the five kilometre target area and geophysical data re-processing to map spodumene has elevated Stannum as one of the most prospective new area’s for an economic lithium discovery in the world class Pilgangoora District,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

Metalicity is now organising a further round of rock chip sampling and mapping for Stannum, which will entail a more comprehensive work program over several days along the five kilometre target zone.

The company outlined this next round of sampling and mapping will again involve helicopter support to accelerate the work program and provide close up aerial assessment.

Metalicity said this work will focus on confirming additional target areas for a maiden drilling program at Stannum, which is currently planned for the third quarter of 2016.

Metalicity’s Pilgangoora South project applications (E45/4675, E45/4676 and E45/4677) are located within five kilometres of the Pilgangoora lithium deposit of Pilbara Minerals (ASX: PLS) and adjacent to the Wodgina operations of Global Advanced Metals.

Metals of Africa buys into US spherical graphite mill

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THE BOURSE WHISPERER: Metals of Africa (ASX: MTA) has agreed with a number of parties to jointly acquire a micronizing and spheronizing mill to produce spherical graphite in the United States as part of a battery production and testing facility.

MTA explained the production of spherical graphite is a critical step in the production of anodeready material that is used in Lithium Ion batteries.

The company’s partners in this collaborative initiative are:

Elcora Advanced Materials Corp (TSXV: ERA);

Northern Graphite Corporation (TSXV: NGC);

Nouveau Monde Mining Enterprises Inc. (TSXV: NOU);

Coulometrics LLC; and

A private industry partner.

MTA said the purchase of this mill will enable it, and its project partners, to produce and test Coated Spherical Purified Graphite (C-SPG) from ‘end-to-end’ within North America, using flake graphite concentrate to be produced at the MTA’s Montepuez Central and Balama Central graphite projects in Mozambique.

C-SPG is processed into battery ready anode material for end users.

The mill will enable MTA to supply lithium-ion battery manufacturers with a fully qualified test product that can be traced 100 per cent back to its source, providing vital technical verification on the material and other key supply chain metrics such as environmental best-practice, which is currently being legislated in the US and Europe.

“We were selected to participate in the development of a next generation graphite facility, tasked to produce high yield battery grade spherical graphite that can provide significant cost savings and reduced environmental impact,” Metals of Africa managing director Cherie Leeden said in the company’s announcement to the Australian Securities Exchange.

“We look forward to being a key contributor to the initiative via test material from our superior graphite.”

Email: admin@metalsofafrica.com.au

Website: www.metalsofafrica.com.au

Renaissance Minerals and Emerald Resources strike up Cambodia Gold JV

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THE BOURSE WHISPERER: Renaissance Minerals (ASX: RNS) has struck a Joint Venture Agreement with Emerald Resources (ASX: EMR) in accordance with the terms of a Memorandum of Agreement the two companies announced in February 2016.

The JV Agreement remains conditional upon:

Approval by the shareholders of Renaissance (meeting to be held 30 March 2016);

Approval by the shareholders of Emerald (meeting to be held 31 March 2016);

ASX granting Emerald conditional approval for the securities in Emerald to be reinstated to trading on the ASX following re-compliance by Emerald with ASX Listing Rules; and

Renaissance and Emerald obtaining necessary approvals and consents from the Cambodian Government.

“The proposed transaction with Renaissance will constitute a change in the nature and scale of activities from oil and gas in the United States to gold exploration and development in Cambodia,” Emerald Resources explained in its ASX announcement.

“As such, Emerald will be required to obtain shareholder approval of the transaction and to re-comply with Chapters 1 and 2 of the ASX Listing Rules.”

Email: admin@renaissanceminerals.com.au

                info@emeraldresources.com.au

Website: www.renaissanceminerals.com.au
                 www.emeraldresources.com.au

Australian Mines confirms extensive sulphidic corridor at Dixon

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THE DRILL SERGEANT: Australian Mines (ASX-AUZ) has completed reverse circulation (RC) and diamond core drill program, which has intersected a thick corridor of disseminated iron sulphides (pyrite +/- pyrrhotite) within the targeted dolerite geology at the company’s Dixon gold prospect in Western Australia.

Dixon is part of Australian Mines’ joint venture with Riedel Resources (ASX: RIE).

The company explained iron sulphides are often associated with gold mineralisation across the Eastern Goldfields of Western Australia, citing examples such as KCGM’s Super Pit Gold Mine in Kalgoorlie, which like the Dixon mineralisation, is similarly hosted within a dolerite unit.

The geological logging of the diamond drill core and RC chips from the latest drill program indicates this sulphidic corridor at Dixon to be around 120 metres thick and is continuous for more than 400 metres in length.

Both these dimensions remain open, Which Australian Mines says suggests that Dixon’s size could further expand as it completes additional drill programs in the coming months.

“Australian Mines’ discovery of a wide and laterally continuous sulphidic corridor at Dixon is highly significant as it confirms that a large-scale fluid flow, and potentially gold mineralising event has occurred within the company’s prospect area,” Australian Mines managing director Benjamin Bell said in the company’s announcement to the Australian Securities Exchange.

“The fact that visible gold was observed within the diamond drill core from Dixon together with the high-grade gold zone, which was previously intersected within hole MMRC016, indicates that at least some of this incoming fluid is gold-bearing.

“In light of these positive results, Australian Mines remains confident that its Dixon prospect represents an emerging greenfields gold discovery in a proven gold province of Western Australia.

“The company has therefore committed to undertaking the next phase of drilling as soon as practicable and we look forward to providing details of this drill program to shareholders as well as the assay results from the recently completed drill program as soon as this information becomes available.”

Email: office@australianmines.com.au

Website: www.australianmines.com.au