Sign up Australia
Proactive Investors - Run By Investors For Investors

Blackham Resources grows gold resources in bid for production expansion

Blackham Resources now has 6.4 million ounces of gold resources.
Blackham Resources grows gold resources in bid for production expansion
Blackham’s 100% owned Matilda and Wiluna Gold Operation is located in Australia’s largest gold belt

Blackham Resources (ASX:BLK) has expanded its global JORC resource by 400,000 ounces gold to 6.4 million ounces at the Matilda/Wiluna Gold Operation located in Western Australia.

This increase is associated with the Stage 2 expansion study aimed at growing production beyond 200,000 ounces per annum.

The new estimate includes new open pit JORC resources at the Happy Jack – Bulletin and Adelaide – Moonlight areas.

This is a result of the successful exploration drilling programs to date.

Consequently, Blackham is advancing its mining and processing studies to increase the processing capacity to more efficiently develop the large resource base.

Bryan Dixon, managing director, commented: “The latest Wiluna resource upgrade is likely to add significant base load open pit and high grade underground feed for the Wiluna expansion study.”


Resource upgrade details

JORC resources have now been updated for the Happy Jack, Creek Shear, Bulletin, Adelaide, Moonlight and Lone Hand open pit deposits.

This is in addition to the December resource expansion at the East and West Lodes.

The global resource at Matilda and Wiluna incorporating all the recent updates is now 63 million tonnes grading 3.2 g/t gold for 6.4 million ounces of gold.

This is up from 58 million tonnes grading 3.2 g/t gold for 6.0 million ounces of gold

All resources are within a 20 kilometre radius of the Wiluna gold plant.


Background

Blackham’s 100% owned Matilda and Wiluna Gold Operation is located in Australia’s largest gold belt.

The Wiluna Gold Plant is located in the centre of the combined operation and can process circa 100,000 ounces of gold per annum, known as Stage 1.

The 1,000+ square kilometre tenement package has historically produced in excess of 4.3 million ounces of gold.

A mill expansion study is now in progress, known as Stage 2, which is exploring the potential to grow production beyond 200,000 ounces of gold per annum.


Analysis

The resource upgrade plays a vital role in justifying and progressing gold production to the Stage 2 level.

Furthermore, the successful drill program speaks to the prospectivity of the ground and its ability to host additional gold resources, which ensures the project has an enduring mine life.

The current mining studies are aimed at feeding half the planned 1.5 million tonnes per annum additional throughput from the open pits and half from the underground.

This indicates a 3+ million tonnes per annum total processing capacity across the Matilda/Wiluna Operation.
Further growth in the open pit resources is likely to underpin the base load feed and growth in the underground resources will provide important grade profile for Wiluna processing plant.

The resource upgrade means there has been a 25% increase in the global JORC resource since last quarter.

It continues to be a transformational period for Blackham whose share price has tripled over the past 12 months, currently priced at $0.775.

The Matilda/Wiluna Operation is one of few Australian gold projects capable of hosting a long-life 200,000+ ounces per annum operation.





Register here to be notified of future BLK Company articles
View full BLK profile View Profile

Blackham Resources Ltd Timeline

Related Articles

picture of mine interior
July 20 2017
Caledonia retains operational control of Blanket and ownership of 49% of the mine in Zimbabwe
1511347932_gold_bars,_sized.png
November 22 2017
Scotgold's rights issue will go a long way towards bringing in the funds to get Cononish into production
Lithium-battery.jpg
January 23 2017
Barisan Gold is well into the process of transforming itself into a lithium company

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use