THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) has finalised an agreement to acquire the Wiluna gold project in Western Australia.
Blackham considers the purchase to be an ideal fit for its 100 per cent-owned
Matilda gold project as well as re-positioning the company as a near-term gold producer with a large prospective exploration package.
The acquisition is to be funded out of the company’s $13 million funding facility with Great Central Gold Pty Ltd.
“The acquisition of the Wiluna plant and infrastructure is a major step towards bringing the Matilda Gold project further towards production,” Blackham Resources chairman joseph Gutnick said in the company’s announcement to the Australian Securities Exchange.
“The acquisition of the plant saves Blackham millions of dollars in development costs for the Matilda gold project and will slash years off our development timetable, both of which should be a significant win to Blackham’s shareholder returns going forward.”
Source: Company announcement
The Wiluna gold project covers approximately 44 square kilometres and 10km of strike along the Wiluna Mine Sequence which hosts numerous deposits with resources totalling 16.7 million tonnes at 5.3 grams per tonne for 2.8 million ounces of gold.
The project has produced over four million ounces of gold.
Blackham explained the deal expands its footprint to approximately 780sqkm and 55km of strike along the Wiluna and Coles Find Mines Sequences.
Blackham’s Matilda gold project sits adjacent to the Wiluna project with resources of 23.7 million tonnes at 1.9g/t for 1.4 million ounces of gold.
All the Matilda deposits sit within 26km by existing haul roads to the Wiluna gold plant.
According to Blackham 87 per cent of the Matilda project resources are free milling.
Since it acquired Matilda in November 2011, Blackham has increased its resource by 360 per cent.