Blackham Resources Reports Record Month of Gold Production

THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) provided an operational update for the month of January 2018 at the company’s Matilda-Wiluna gold operation in Western Australia.

Blackham Resources indicated that gaining access to high-grade zones in the M4 and Galaxy pits late in the December 20117 quarter was a contributing factor to it achieving record monthly gold production of 6,498 ounces and a low stripping ratio of 3.6:1 (waste: ore) during January 2018.

This resulted in Blackham achieving a record low monthly AISC in January 2018 of $1,158 per ounce, in comparison to an average previous realised gold price of $1,663 per ounce, which the company said demonstrated a clear step change in economics.

Blackham said it expects milled grade and gold production to continue to improve throughout the March 2018 quarter.

The Operation is now building high-grade stockpiles for the first time since March 2017; these high-grade stockpiles currently total 108,000 tonnes at 1.5g/t gold.

During Feb’18, the Operation is expected to mine approximately twice as much high-grade ore as it will process, providing strong operational flexibility.

“With the Operation’s production at record levels and a significant reduction in AISC having already been achieved, the company is clearly demonstrating that its operational turnaround is well underway,” Blackham Resources executive chairman Milan Jerkovic said in the company’s announcement to the Australian Securities Exchange.

“This operational performance, in conjunction with the current strong AUD gold price, is expected to make 2018 a transformational year that is expected to generate significant cash flows and value for Blackham and its shareholders.”