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Blackham Resources has potential to join 200,000 gold ounce per annum production club

Blackham is growing gold production each quarter as costs decrease.
Blackham Resources has potential to join 200,000 gold ounce per annum production club
On-site at the Matilda/Wiluna Operation

Blackham Resources Ltd (ASX:BLK) has the ability to continue to build scale at its wholly-owned Matilda/Wiluna Operation’s in Western Australia.

Blackham can now eye potential for a +200,000 gold ounce operation a year, a milestone achievement considering the first gold was poured less than 12-months ago.

Results from an Expansion Preliminary Feasibility Study (PFS) demonstrated robust economics and improved economies of scale supporting the expansion.

Bryan Dixon, managing director, commented:

"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.

"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."

Historically, over the last 20 years, the operation has relied predominately on underground feed.

Blackham’s comparative advantage to previous operators is the 15 million tonnes at 2.3g/t gold, of which 85% is reserves, in open pit feed, and is included in the Expansion PFS Mine Plan.

The Matilda/Wiluna Operation is located in Australia’s largest gold belt stretching from Norseman through Kalgoorlie to Wiluna, where the regional endowment is over 40 million ounces.

Analysis

Blackham’s principal success to date has been identifying, consolidating and defining orebodies all within 20 kilometres of the existing Wiluna Gold Plant.

Highlights from the PFS have a combined processing capacity of 3.2 million tonnes per annum and to maintain over 200,000 gold ounces per annum of production.

Blackham has the potential to finance expansion capital out of Stage 1 cash flow and debt re-sizing.





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