THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) released results of an Expansion Preliminary Feasibility Study (PFS) on the company’s 100 per cent-owned Matilda and Wiluna Gold Operation in Western Australia.
Blackham Resources informed the market that the PFS demonstrated robust economics and improved economies of scale supporting an expansion to the operation.
The company explained that historically, over the last 20 years, previous owners had relied on underground feed to support the operation.
Blackham has done things differently by identifying 15 million tonnes at 2.3 grams per tonne gold (85% at Reserve classification) in open pit feed, which is included in the Expansion PFS Mine Plan.
Blackham has identified, consolidated, and defined orebodies all within 20 kilometrs of the existing Wiluna gold plant.
From the operation’s existing Resource base of 61 million tonnes at 3.1g/t for 6.2 million ounces of gold, the Expansion PFS brings into Reserves 1.2 million ounces (15Mt at 2.5g/t) – an increase of 116 per cent in one year.
Source: Company announcement
“The Wiluna Expansion Plan aims to achieve a step change in gold production from the 6.2 million ounce resource at the Matilda/Wiluna Operation,” Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.
“The Expansion PFS has confirmed gold production averaging 207,000 ounces per annum is achievable on a very capital efficient basis for a likely long mine life.
“Very few Australian gold operations operate at this scale with long mine lives, which proves the significance of the Wiluna goldfield as a major gold province for the future.”