THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) has finalised the Preliminary Feasibility Study (PFS) on the company’s 100 per cent-owned Matilda gold project, located near Wiluna in Western Australia.
The company said the PFS had confirmed the Matilda project’s robust economics including a low capital requirement, short timeframe to production, fast payback and operating costs.
Blackham said the Matilda’s low capex was due to substantial plant and infrastructure already at site and relatively minor plant refurbishments required to re-start the project.
The PFS has added an additional year to the mine life forecast in the Scoping Study while confirming strong conversion of Inferred Resources into Indicated Resources and Scoping Mineral Inventory into Reserves.
Since finalising the PFS Resources Blackham has reported exploration success at Golden Age and Matilda and is currently awaiting drill results from Galaxy and Williamson drilling programs.
Blackham explained the results of the PFS confirm mining and processing parameters are very similar to the results of the Scoping Study, firming up a sound understanding of the technical and operational aspects of the project and further de-risking the development of the Matilda gold project.
“The Matilda gold project PFS has confirmed the robust cash flows that will be generated by the project, its capital efficient nature and that it can be bought into production rapidly,” Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.
“The DFS drill programs and studies are well advanced enabling the DFS to be completed by January 2016.
“Since finalising the PFS Resource, we have enjoyed significant exploration success and we plan to keep growing the mine life through aggressive drilling programs.
“It is an exciting time as we look to transition Blackham into Western Australia’s next significant gold producer.”
Blackham indicated it is making progress on the DFS with drilling programs and resource, metallurgical, environmental and engineering studies underway that are expected to enable the company to complete the DFS much quicker than anticipated, which it hopes will further de-risk the project by increasing confidence levels.
Source: Company announcement