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Blackham Resources Forging Ahead With Wiluna Stage 1 Expansion

THE DRILL SERGEANT: Blackham Resources (ASX: BLK) is ten months into a two-year transitional period at the company’s 100 per cent-owned Matilda-Wiluna gold operation in Western Australia.

Blackham Resources operations were hindered by seasonal weather impacts, (cyclones Blake and Damien), in the first two months of the March 2020 quarter along with some equipment issues and shortages of qualified operators resulting in mining production being below plan.

In an announcement to the ASX, the company indicated its current Stage 1 Expansion activities will enable it to mitigate these disruptions by allowing high-grade stockpiles to be built.

An increased focus and expansion of underground mining will see weather becoming less of an issue.

Obviously, obstructions such as reduced mine material movement, and in-turn, gold production, will reduce the company’s FY 2020 guidance to the low end of gold production expectations, which will in turn impact unit costs.

On the up-scale, Blackham indicated that its March production has increased, which it credited to better weather conditions, new equipment being introduced and commissioned, as well as improved availability of qualified operators.

“Together these factors have seen the gold production rate returning to expected levels and this will allow a stronger operational finish to the financial year,” the company said.

“Mining and stripping development has continued in multiple mining areas, which is expected to provide both short and long-term ore supply of free milling ore into FY 2021.

“Access to high-grade free milling ore is expected to continue to increase over the coming months.”

“At the Golden Age underground mine, the transition to a new equipment supplier has resulted in a turnaround in operational performance and will allow a material uplift in mining rates to be achieved for the remainder of FY 2020 and beyond.”

Blackham’s Stage 1 Expansion activities are cracking along.

Construction of a new tailings storage facility TSF K is nearing completion.

This construction program is the first stage of construction of a ten-year capacity tailings storage facility.

The first stage is designed to hold approximately 2.5 years of tailings produced from the Wiluna processing plant.

The company has replaced an old underperforming mill motor with a new motor in early February, which has provided increased stable processing rates.

Refurbishment of the rod mill was completed and recommissioned, also in February and is now providing an approximate 20 per cent increase in grinding circuit capacity and a proportionate increase in ore throughput.

“Its benefit to the Wiluna operations will especially be seen when we begin milling the harder ore from the Williamson pit which will increase in the June quarter,” Blackham said.

Dewatering activities to enable access to the underground areas for development have been accelerated and are on target to meet the company’s Stage 1 Expansion time line.

On the exploration side, Blackham recently commenced drilling targeting high-grade shallow shoots, initially at the Essex zone.

Essex is located just 200 metres from surface, close to existing infrastructure, and requires minimal dewatering and rehabilitation to access the high-grade ore.

The program has already yielded encouraging results, which the company believes gives affirmation to its strategy of targeting the high-grade ore under the headframe at the Wiluna Mine, to underpin an expansion of reserves ahead of Stage 1 Sulphide Expansion production.

Results to date include:

WURC0804
26 metres at 15.69 grams per tonne gold from 182m; and
21m at 7.04g/t gold from 196m

WURC0823
16m at 3.72g/t gold from 254m, including 4m at 8.23g/t gold and 2m at 6.51g/t gold

WURC0824
8m at 10.10g/t gold from 225m

The company recently announced a funding package of up to $92 million.

The funding package will allow Blackham to finalise the Stage 1 Sulphide Expansion project, which it expects will result in the company producing between 100,000 ounces per annum and 120,000 ounces per annum in concentrate and gold ore.

“Within the current quarter of dramatic global change due to COVID-19, Blackham has been relentless in advancing our stated two-year transformation plan: we have added clout and expertise to our leadership team, refinanced the company and achieved fantastic initial underground exploration results, while significantly upgrading the processing capacity and development of our Wiluna gold mine,” Blackham Resources executive chairman Milan Jerkovic said in the company’s announcement to the Australian Securities Exchange.

“Looking ahead to Q4, we reaffirm our commitment to shareholders to deliver on our five-point strategy of transitioning to gold concentrate production, increasing operational cashflows, repairing the balance sheet, expanding gold production and advancing ‘under the headframe’ exploration, to underpin a future >250koz/pa long-life gold operation.

“We are 10 months into this two-year transformation process, and while there is still a lot of work to do, we are committed to building a safe, quality mining and exploration company, focused on creating value for Shareholders.”

 

Email: info@blackhamresources.com.au

Web: www.blackhamresources.com.au

 

Blackham Resources Extends Golden Age Pit and Underground

THE DRILL SERGEANT: Blackham Resources (ASX: BLK) has completed drilling at the high‐grade free milling Golden Age North (GAN) orebody, closely located to the company’s 1.8 million tonnes per annum Wiluna gold plant in Western Australia.

Blackham Resources completed the drilling below existing underground workings, which has led to an extension of the Golden Age Underground mine life.

Underground development is scheduled to access the mineralisation in Golden Age Lower (GA Lower) which will provide additional high-grade ore for the mill over at least the next six months.

Blackham said the latest results enable the GAN pit to be extended southward and deepened to connect with the Golden Age Pit – extending the GAN pit mine life, thereby providing increased high‐grade mill feed in coming months.

“Blackham has been actively extending Golden Age, its highest‐grade orebody, over the last two years and has successfully maintained a rolling mine life of at least six months,” Blackham Resources executive chairman Milan Jerkovic said in the company’s announcement to the Australian Securities Exchange.

“Mining is now due to start in the Golden Age Lower area and extensions to the Golden Age North open pit have already been identified.

“Further, outstanding near surface results support the potential for new areas of underground mining immediately below the existing Golden Age open pits.

“Further drilling and evaluation is expected to support the early expansion of the underground development to provide additional high‐grade ore feed to the Wiluna gold plant.”

 

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au

 

Production On Track and On The Rise

THE INSIDE STORY: Blackham Resources (ASX: BLK) is a gold producer that holds 100 per cent of the large Matilda-Wiluna gold project in the northern goldfields of Western Australia.

Production at the project commenced in October 2016, which hosts four large gold systems that currently has 6.5 million ounces in Resources at 1.2 million Reserves.

The company’s 6.5 million ounce Resource, of which some 50 per cent sits in the Indicated category with an average grade over three grams per tonne gold, is what makes Blackham stand apart from its peers.

Blackham is in a unique position – for a company with a market cap of less than $90 million, it commands an entire gold field right at the northern end of the Norseman-Kalgoorlie-Wiluna Belt where it controls over 50 kilometres of strike in a gold field that has, historically, produced over 4.4 million ounces of gold.

“Blackham Resources spent 10 years as an explorer and in the past 18 months we have been in production,” Blackham Resources executive chairman Milan Jerkovic told The Resources Roadhouse.

“Cash flow from production had originally been coming a lot slower than what we would have liked, however from the March quarter of 2018, we have turned that around by producing over 20,000 ounces of gold at below $1100 All In Sustaining Costs.

“The outlook is positive, and we believe we can maintain an 80,000 per annum rate without any additional capital being put into the operation.”

Blackham’s gold production star has been on the rise of late and the company underlined that by producing another record quarter of gold production in March of 7,419 ounces.

This represented an 11 per cent increase on the previous record month recorded in February of 6,713 ounces.

The March result included milling of 165,000 tonnes of ore with improved mill feed grades hitting 1.6 grams per tonne gold, compared to February’s 1.5g/t gold.

The figures contributed to a new record for quarterly gold production of 20,631 ounces, a marked 38 per cent increase on the December 2017 quarter, which produced 14,922 ounces.

“That we have been able to improve our gold production profile on a month-by-month basis demonstrates that we really have the project under control,” Jerkovic said.

“Even though the project has in recent times been much-maligned, the truth is that it hasn’t really received the attention it has deserved over the last ten years.

“Our approach to operating at Wiluna is significantly different to how previous operators have gone about things.

“We have now started focusing on the free-milling ores, primarily coming out of the Matilda mine and we will continue to mine that for the bulk of FY19.

“We have commenced mining at Golden Age in the underground part of the operation, which is a high-grade underground operation.”

Recent drilling undertaken from March to May 2018 consisted 19 surface RC holes for 2,117m and 30 underground diamond holes for 2,331m focused on extensions to the Golden Age deposit.

Results achieved from the high-grade free milling Golden Age orebody substantially extended mineralisation beyond current mining areas.

Drilling of the Golden Age lower extensions located mineralisation 150 to 300m below the current mining levels, returning:

GARD0033
6.9 metres at 15.5 grams per tonne gold; and

GARD0036
2m at 11.8 g/t gold.

Surface drilling at Golden Age North intersected high-grade shallower mineralisation amenable to both open pit and underground mining.

The March quarter 38 per cent increase in production was achieved primarily from the company gaining access to higher grade zones in the M4 and Galaxy open pits late in the December 2017 quarter.

“The bulk of our feed is coming from the Matilda mine and we are producing gold from an average grade of around 1.5 grams per tonne,” Jerkovic explained.

“We finished mining the M4 pit this quarter and we have now moved in to mining ore from the M1 and M2 pits.”

Blackham is currently evaluating the economics of the remaining Golden Age Underground Resource of 0.9 million tonnes at 4.5g/t gold for 129 ounces.

Studies so far have added a further 24,600 tonnes at 6g/t gold for 4,700 ounces of production targeted for between July and December 2018.

Reserve definition drilling will continue as Blackham seeks to increase its current 15 million tonnes at 2.5g/t gold for 1.2 million ounces gold reserves by converting more of the 6.5 million ounce gold Resources.

A recently completed free milling drill program extended shallow oxide and transitional mineralisation close to the Wiluna CIL plant.

The drilling encountered broad zones of shallow high-grade mineralisation intersected surrounding the modelled East-West pit cutback, in Blackham’s newly discovered cross structure zones that were not mined by previous operators.

Better intercepts included:

WURC0622
20 metres at 4.84 grams per tonne gold from 5m, including 9m at 8.76g/t gold;

WURC0623
19m at 3.52g/t gold from 3m incl. 1m at 5.27g/t gold and 3m at 5.62g/t gold and 2m at 10.63g/t gold;

WURC0619
22m at 2.97g/t gold from 11m, including 7m at 5.90g/t gold;

WURC0627
14m at 4.23g/t gold from 16m, including 7m at 7.66g/t gold;

WURC0617
22m at 2.38g/t gold from 3m, including 1m at 7.10g/t gold and 1m at 7.76g/t gold and 1m at 6.48g/t gold;

WURC0630
13m at 3.58g/t gold from 48m, including 3m at 5.30g/t gold;

WURC0624
15m at 2.70g/t gold from 32m, including 1m at 5.89g/t gold and 1m at 6.95g/t gold; and

WURC0625
19m at 2.00g/t gold from 40m;

Infill drilling at the Happy Jack pit has delivered further high-grade oxide and transitional intersections and enhanced confidence in the resource model interpretation.

The potential for increased sulphide resources was also highlighted by several holes that extended into the deeper fresh rock.

Better results included:

WURC0598
19m at 6.36g/t gold from 35m;

WURC0585
7m at 7.62g/t gold from 35m and 9m at 1.99g/t gold from 111m;

WURC0603
8m at 4.65g/t gold from 112m and 10m at 7.93g/t gold from 136m;

WURC0589
12m at 2.29g/t gold from 122m, 3m at 4.97g/t gold from 138m and 9m at 6.83g/t gold from 147m; and

WURC0602
8m at 2.30g/t gold from 2m, 23m at 1.59g/t gold from 18m and 20m at 8.70g/t gold from 72m.

Drilling was also completed around the Adelaide, Moonlight, Essex and Bulletin pits with moderate tenor results received.

Cutbacks on these pits also appear viable and are being assessed for future mining.

Blackham plans further drilling to close out open-pit mineralisation ahead of finalising mine designs for the free milling starter pits.

The next resources and reserves update will incorporate these results and is expected to be completed in the September quarter.

“We continue to spend around $6 million on exploration and Reserve growth, particularly on our free milling ore sources,” Jerkovic said.

“We have a lot of advanced brownfield opportunities and we have been drilling them significantly.

“We are now producing strong cash flow – it took a while for that to come, but back in the December quarter last year was a tough quarter for the company with a lack of ore being supplied to the plant.

“We now have our mine sequencing back on track and the plant is running nicely and we are feeding it our high-grade ore and producing strong cash flows.”

 

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

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

Ph: +61 8 9322 6418

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

DIRECTORS
Milan Jerkovic, Bryan Dixon, Greg Miles, Greg Fitzgerald

 

Blackham Resources Delivers Wiluna Tailings Maiden Resource

THE DRILL SERGEANT: Blackham Resources (ASX: BLK) has completed an initial Mineral Resource estimate for the historical tailings at the company’s Wiluna Gold Operations in Western Australia.

Blackham Resources said the tailings are all within 2km of the Wiluna processing plant and have added 620,000 ounces to the Wiluna free milling gold Mineral Resource base.

The maiden Mineral Resource for the Wiluna Tailings is 33.6 million tonnes at 0.57 grams per tonne gold with 77 per cent of the Mineral Resource classified under the JORC 2012 code as Indicated Resources.

Blackham explained that historical tailings have accumulated at the site since the 1930s and recent independent metallurgical test work has shown potential gold recoveries of between 42 to 50 per cent can be achieved through standard mining and gold leaching processes.

The company added that additional metallurgical test work will potentially enhance the gold recovery and validate how this material may supplement its operating plans.

“Blackham has successfully identified additional free milling ore associated with the Golden Age mineralisation and the Wiluna oxidised zones,” Blackham Resources said in its ASX announcement.

“The company also continues its exploration programs into its priority Lake Way targets and has now completed the first phase of drilling.

“This drilling is the first new drilling in that area for 12 years and the company is awaiting final results.”

Blackham intends to continue to add to its free-milling resource inventory at its Wiluna operations with a view to fully utilising its available assets.

Annual updated Mineral Resource estimates are currently underway for all areas at Wiluna and are expected to be reported in the current quarter.

 

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au

 

Blackham Resources Extends Wiluna High-Grade Mineralisation

THE DRILL SERGEANT: Blackham Resources (ASX: BLK) released results from a recent free milling drill program undertaken at the company’s Wiluna-Matilda gold operation in Western Australia.

Blackham Resources said the drilling had extended shallow oxide and transitional mineralisation close to the Wiluna CIL plant.

Results include broad zones of shallow high-grade mineralisation intersected surrounding the modelled East-West pit cutback, in Blackham’s newly discovered cross structure zones that were not mined by previous operators.

Better intercepts include:

WURC0622
20 metres at 4.84 grams per tonne gold from 5m, including 9m at 8.76g/t gold;

WURC0623
19m at 3.52g/t gold from 3m incl. 1m at 5.27g/t gold and 3m at 5.62g/t gold and 2m at 10.63g/t gold;

WURC0619
22m at 2.97g/t gold from 11m, including 7m at 5.90g/t gold;

WURC0627
14m at 4.23g/t gold from 16m, including 7m at 7.66g/t gold;

WURC0617
22m at 2.38g/t gold from 3m, including 1m at 7.10g/t gold and 1m at 7.76g/t gold and 1m at 6.48g/t gold;

WURC0630
13m at 3.58g/t gold from 48m, including 3m at 5.30g/t gold;

WURC0624
15m at 2.70g/t gold from 32m, including 1m at 5.89g/t gold and 1m at 6.95g/t gold; and

WURC0625
19m at 2.00g/t gold from 40m;

Infill drilling at the Happy Jack pit has delivered further high-grade oxide and transitional intersections and enhanced confidence in the resource model interpretation.

The potential for increased sulphide resources was also highlighted by several holes that extended into the deeper fresh rock.

Better results include:

WURC0598
19m at 6.36g/t gold from 35m;

WURC0585
7m at 7.62g/t gold from 35m and 9m at 1.99g/t gold from 111m;

WURC0603
8m at 4.65g/t gold from 112m and 10m at 7.93g/t gold from 136m;

WURC0589
12m at 2.29g/t gold from 122m, 3m at 4.97g/t gold from 138m and 9m at 6.83g/t gold from 147m; and

WURC0602
8m at 2.30g/t gold from 2m, 23m at 1.59g/t gold from 18m and 20m at 8.70g/t gold from 72m.

Drilling was also completed around the Adelaide, Moonlight, Essex and Bulletin pits with moderate tenor results received.

Cutbacks on these pits also appear viable and are being assessed for future mining.

Best results were:

WURC0600
6m at 3.81g/t gold from 103m, including and 13m at 1.95g/t gold from 127m; and

WURC0605
11m at 2.23g/t gold from 19m.

“Further drilling is planned to close out open-pit mineralisation ahead of finalising mine designs for the free milling starter pits,” Blackham Resources said in its ASX announcement.

“Blackham’s next resources and reserves update will incorporate these results and is expected to be completed in the September ’18 quarter.

“Blackham management are currently fast-tracking pit designs and approvals to mine the high-grade East West Cross Structures and Golden Age North pits in the December’18 quarter.”

 

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au

 

Blackham Resources Extends Golden Age High-Grades

THE DRILL SERGEANT: Blackham Resources (ASX: BLK) announced drilling at the company’s high-grade free milling Golden Age orebody has extended mineralisation beyond current mining areas.

Blackham Resources drilled 19 surface RC holes and 30 underground diamond holes throughout March to May focused on extensions to the Golden Age deposit.

Drilling of the Golden Age lower extensions encountered mineralisation 150 to 300 metres below the current mining levels:

GARD0033
6.9 metres at 15.5 grams per tonne gold; and

GARD0036
2m at 11.8 g/t gold.

Surface drilling at Golden Age North intersected high-grade shallower mineralisation amenable to both open pit and underground mining of:

WURC0577
2m at 28.3g/t gold from 75m 57;

WURC0583
6m at 7.97g/t gold from 106m and 1m at 6.14g/t gold 54;

WURC0579
8m at 5.82 g/t gold from 87m 47;

WURC0601
7m at 1.52 g/t gold from 12m and 14m at 1.26g/t gold 28;

WURC0567
7m at 2.97 g/t gold from 80m 21; and

WURC0575
4m at 4.24 g/t gold from 94m 17.

Infill drilling extended remnant mineralisation currently being mined, including:

GAGC0244
2.1m at 43.6g/t gold and 1.1m at 7.28g/t Au 97;

GAGC0243
6.5m at 8.88g/t gold and 2.8m at 5.81g/t Au 74;

GAGC0233
5.1m at 4.15g/t gold 21;

GAGC0238
1.1m at 17.4g/t gold 19; and

GAGC0241
2.1m at 7.87g/t gold 16.

Blackham Resources indicated the Golden Age drilling program is to be extended further with a view to both lengthening the mine plan and increasing the mining rate at Golden Age.

The free milling resources and reserves are currently being updated to incorporate recent Wiluna and Golden Age drilling results.

“Blackham is pleased to announce new drill results from our high-grade Golden Age orebody which have identified significant extensions to mineralisation within 200 metres of existing underground development,” Blackham Resources executive chairman Milan Jerkovic said in the company’s announcement to the Australian Securities Exchange.

“Based on the highly encouraging intercepts, planning has commenced for further drilling to better define the mineralised extensions and to support early underground development to provide additional high-grade ore to feed the Wiluna gold plant, which last quarter produced 20,631 ounces at AISC $1,092 per ounce.”

 

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au

 

Blackham Resources Identifies Mineralisation Extensions at Wiluna

THE DRILL SERGEANT: Blackham Resources (ASX: BLK) declared its latest drilling program at the company’s Wiluna and Matilda gold operation in Western Australia has identified extensions to shallow oxide and transitional mineralisation.

Blackham Resources said the results indicate potential for new open pits close to the Wiluna plant.

During March and April, Blackham’s exploration team drilled 130 RC holes focused on delineating further free milling open pit reserves over the 3.7 kilometres of strike at the Wiluna Mine.

The company said the Wiluna Mine drilling is expected to conclude in mid-May and resources will be re-estimated at that time.

“Pit optimisation studies completed immediately prior to this drilling demonstrate the potential for open pit cutbacks and new open pits to be developed at the Wiluna mine site,” Blackham Resources said in its ASX announcement.

“The $1,400 and $1,800 shells are similar in extent, which shows open pit mining is expected to be economic at a range of potential gold prices.

“These latest drilling results are expected to support substantial increases to open pit resources and reserves within open pits.”

Blackham said the potential for increased sulphide resources was highlighted by drill hole WURC0508, which intersected high-grade Wiluna shear-style sulphide mineralisation of:

22 metres at 3.29 grams per tonne gold from 97m down-hole, including 2m at 5.15g/t gold and 3m at 8.33 g/t gold.

Balckham said these zones show improving grade and thickness of Starlight mineralisation at depth and remain open for follow-up drill testing.

“Wiluna Mine final drilling results from outstanding holes are expected by the end of May, with resource and reserve updates to follow,” the company said.

“Golden Age underground drilling is ongoing and Lake Way drilling is due to commence this month.”

 

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au

 

Blackham Resources Returns to Winning Form

THE INSIDE STORY: Just as a week is a long time in football, Blackham Resources (ASX: BLK) has shown the industry a quarter can be a long time in mining.

If Blackham Resources were to be compared to the fortunes of an Australian Rules Football club it would most likely be Richmond.

Its supporters are fanatical and are quick to let those in charge feel their wrath when things are down and are equally magnanimous when their team starts performing to their liking.

Blackham disappointed its followers last year when its 2017 June Quarterly reported the company had missed guidance of 17000 to 22000 ounces of gold at its 6.5 million ounce Wiluna gold operations in Western Australia, producing an sub-performance 15700 ounces.

This result had followed a lower return from the March 2017 quarter of 14900 ounce.

Blackham provided several reasons for the performances, including wet weather, wall slippages and lower than expected underground grades for missing expectations, however it also signalled a return to form was imminent, flagging a likely increase in grade profile, which would generate better production and Free Cash Flow from the September 2017 quarter.

Although gold production was still down for the September 2017 quarter at 15,619 ounces, there was a noticeable improvement in mill feed due to mining of bigger and higher-grade proportions of Golden Age underground ore.

Mill feed grade was weighed down by 39 per cent of the ore milled during the quarter being from lower grade stockpiles (0.7g/t) and access to a substantial portion of higher-grade M4 open pit ore was delayed into the December 2017 quarter due to the pit wall instability which was rectified during the quarter.

Blackham started showing a return to form during the December 2017 quarter when it reported that extensive waste stripping it had carried out during the calendar year 2017 had provided access to high-grade zones in both the Galaxy and M4 pits, in November and December respectively that would provide up to six months of access to consistent high-grade ore.

Mining at M4 and Galaxy is expected to underpin strong operational cashflows for Blackham in 2018.

Both got off to flying starts during December 2017 with 137000 tonnes of high-grade ore at 1.6 grams per tonne gold mined from the M4 and Galaxy pits and a further 7,887 ounces of gold mined from the two open pits in December.

When Blackham released its quarterly in January the two pits were already ahead of previous results with 11410 ounces of gold mined, more than the entire September quarter.

By kicking off mining of these high-grade M4 and Galaxy pits zones, Blackham began to build high-grade stockpiles, which was the first significant high-grade stockpile build-up the company had achieved since March 2017.

Blackham Resources started its return to Brownlow Medal-form in 2018 producing a strong March quarter at Wiliuna that increased gold production by 38 per cent from the previous December quarter including new monthly record gold production achieved in each successive month of the quarter.

In January Blackham produced 6,498 ounces of gold that was achieved along with a record low monthly All In Sustaining Costs (AISC) of $1,158 per ounce, which compared well to an average realised gold price during the month of $1,663 per ounce, demonstrating a clear step change in economics for the operation.

February’s numbers saw further improvement thanks to a low open pit mining stripping ratio of 1.5:1 (waste:ore).

The company chalked up another record month of gold production, combing with the low stripping ratio to set a record low monthly AISC for February of $912 per ounce with an average realised gold price during the month of $1,670 per ounce.

Rainfall and lightning events during the month threatened to destabilise mining operations once again, however this time the company was able to see them off and increased the high-grade stockpiles to 144000 tonnes at 1.7g/t gold – more than a month’s production.

“February’s operational results demonstrate a continued improvement of the turnaround that commenced in December 2017,” Blackham Resources executive chairman Milan Jerkovic said.

“Record production and further reduced costs from the operation underpinned another month of strong cashflow, whilst maintaining stockpiles with increased grades.”

Blackham completed a premiership quarter with another gold production record for the month of March pumping out 7419 ounces of gold, an impressive 11 per cent increase on February.

AISC were reduced in the March quarter to $1092 per ounce, representing a substantial 42 per cent decrease on the December of $1882 per ounce.

An average realised gold price of $1669 per ounce was achieved for the quarter and the company holds gold forward sales contracts of 29,417 ounces at $1725 per ounce over the next nine months representing approximately 50 per cent of targeted production over that period.

“The March operational results demonstrate a continuation of the step change in project economics that commenced in December 2017,” Jerkovic said.

“Record production and significantly reduced costs underpinned a quarter of strong operational cashflows, whilst building stockpiles.”

As at 31 March 2018, Blackham had improved its net debt position to $10.4 million, a much healthier position than at 31 December 2017 where it sat at $27.4 million.

The company also held cash and bullion of $29.6 million and secured interest-bearing debt of $40 million.

A $14.3 million term loan previously due on 31 December 2017 was refinanced in mid Jan’18.

Blackham’s improved performance was recognised in the form of very strong shareholder support for an underwritten Entitlement Offer that raised approximately $35.9 million.

“The funds raised from the Entitlement Offer puts Blackham in a strong position to execute on its free milling mine plan, as well as to advance exploration focussed on growing our free milling mine life,” Jerkovic said.

“As demonstrated by the strength of our operations in December 2017 and January 2018, the company is at an exciting stage, with 2018 likely to be a transformational year of strong operational and financial performance.”

During March, Blackham’s exploration team drilled a program consisting 84 RC holes that was focused on delineating further free milling open pit reserves over the four kilometres of strike at the Wiluna mine.

This drilling was undertaken to follow up on a program of 77,000m drilling completed during the 2017 financial year.

That drilling had established probable reserves of 669,000 ounces (7.7 million tonnes at 2.7g/t gold), which includes oxide and transitional reserves of 144,000 ounces (2.5 million tonnes at 1.8g/t gold).

The drilling is focused on free milling ores that can be processed through the current plant.

The company has revised Wiluna mining and metallurgical studies that are well advanced in this area following the Wiluna Expansion PFS published in August 2017.

The Expansion PFS confirmed the robust economics for a plus-200,000 ounces per annum long mine life operation.

Key outcomes were life-of-mine AISC of $1,058 per ounce (US$822/oz), IRR 123 per cent and NPV of $360 million before tax at $1600 per ounce gold price.

Blackham is now re-estimating the open pit oxide reserves around the Wiluna mine site as the Blackham management team believes the Wiluna free milling ores are an obvious feed stock for the current operating mill and has a plan to fast track mining approvals.

 

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

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

Ph: +61 8 9322 6418

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

DIRECTORS
Milan Jerkovic, Bryan Dixon, Greg Miles, Greg Fitzgerald

Blackham Resources Confirms Wiluna Transitional Reserves Compatible with CIL Plant

THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) kept the market abreast of metallurgical testwork underway on Wiluna oxide and transitional ores at the company’s Matilda-Wiluna gold operation in Western Australia.

Blackham Resources is conducting the Wiluna mining and metallurgical studies following the success of the Wiluna Expansion Preliminary Feasibility Study (Expansion PFS) carried out in 2017.

The company explained the latest testwork confirms the Wiluna oxide and transitional ores are an attractive feed stock for the current operating Wiluna CIL plant.

All the historic open pits were processed through the Wiluna CIL plant except for the 2007 East pit cut back.

Blackham said the metallurgical testwork it has carried out on both the oxide and transitional ores has confirmed that these ores are best processed through the current CIL plant.

In the Expansion PFS it was conservatively assumed that the transitional ores would be processed through the Flotation and Biox Plant (Sulphide Circuit).

The transitional ore can gain higher recoveries through the CIL plant cutting the processing cost by approximately 30 per cent compared to the sulphide circuit.

“Blackham is currently re-estimating the open pit free milling resources and reserves around the Wiluna Mine site,” the company said in its ASX announcement.

“The Blackham management team believes the free milling ores within the existing Wiluna Mine footprint are an attractive feed stock for the current operating mill and allows for fast tracking mining approval.”

 

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au

 

Blackham Resources Declares Record Production Month

THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) declared a record gold producing month for March 2018 at the company’s 6.5 million ounce Matilda-Wiluna gold operation in Western Australia.

Blackham Resources announced gold production in March of 7,419 ounces, an 11 per cent increase on February 2018, when it produced 6,713 ounces.

The figures presented a new record quarterly gold production of 20,631 ounces of gold, providing at a 38 per cent increase to the previous December 2017 quarter achievement of 14,922 ounces.

The company put the March quarter’s production increase down to it gaining access to higher grade zones in the M4 and Galaxy pits late in the December 20117 quarter

During the September 2017 and December 2017 quarters 248,000 tonnes and 206,000 tonnes of low grade stockpiles where processed respectively at an average grade of 0.7 grams per tonne, reducing mill feed grade for those quarters.

During the March quarter throughput increased eight per cent on the prior quarter while plant recoveries decreased slightly as deeper ore from the M4 pit was processed.

“The March operational results demonstrate a continuation of the step change in project economics that commenced in December 2017,” Blackham Resources executive chairman Milan Jerkovic said in the company’s announcement to the Australian Securities Exchange.

“Record production and significantly reduced costs underpinned a quarter of strong operational cashflows, whilst building stockpiles.

“We remain confident that 2018 will be a transformational year that will generate significant operating cash flows and value for Blackham and its shareholders.”

 

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au