Proactiveinvestors Australia Blackham Resources Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Blackham Resources Ltd RSS feed en Mon, 10 Dec 2018 21:53:08 +1100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Blackham Resources to progress farm-in deal with A-Cap Energy by mid-December ]]> https://www.proactiveinvestors.com.au/companies/news/210342/blackham-resources-to-progress-farm-in-deal-with-a-cap-energy-by-mid-december-210342.html Blackham Resources Ltd (ASX:BLK) is progressing the binding term sheet it signed with A-Cap Energy Ltd (ASX:ACB) in early October 2018.

The deal is for A-Cap to farm-in to a 75% interest for the cobalt, nickel and associated metals of the Wiluna Cobalt Nickel (Wilconi) Project in Western Australia.

Originally, the binding term sheet set out the satisfaction of conditions precedent on or by 29 November 2018 – both parties have agreed to extend this to Thursday 13 December 2018.

READ:  Blackham Resources farms out Wilconi project, delivers 150% increase in gold-silver revenue

Wilconi has a JORC inferred resource of 80.5 million tonnes at 0.77% nickel and 0.058% cobalt.

This transaction is consistent with Blackham’s stated strategy of divesting non-core assets allowing it to focus on its Matilda-Wiluna Gold Operation in Western Australia.

Three-staged joint venture structure proposed

A-Cap will acquire an initial 20% JV interest by making a cash payment to Blackham of $2.8 million within two days of the parties entering into the staged JV agreement.

On making the payment A-Cap will also acquire third-party exploration data for a payment of $100,000.

A second earn-in interest of a further 35% may be acquired by A-Cap for a cash payment of $500,000 within a period of 24 months and after incurring minimum expenditure on exploration activities.

The third earn-in interest of 20%, bringing the total JV interest held by A-Cap to 75%, will be subject to completing the project’s definitive feasibility study within 36 months, a cash payment of $1 million and an issue of $1.5 million worth of A-Cap shares.

A-Cap plans to upgrade resource to JORC 2012 standards

A-Cap intends to immediately begin a drilling campaign to bring existing inferred resources at Wilconi into JORC 2012 standard.

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Mon, 03 Dec 2018 09:31:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210342/blackham-resources-to-progress-farm-in-deal-with-a-cap-energy-by-mid-december-210342.html
<![CDATA[News - Blackham Resources’ agreement over Wiluna West likely to boost gold free milling inventory ]]> https://www.proactiveinvestors.com.au/companies/news/209799/blackham-resources-agreement-over-wiluna-west-likely-to-boost-gold-free-milling-inventory-209799.html Blackham Resources Ltd (ASX:BLK) has signed an agreement with GWR Group Ltd (ASX:GWR) covering that company’s 254,000-ounce Wiluna West Gold Project.

The agreement is for the exploration, development, mining and processing of gold resources from the project, which is 40 kilometres by road from Blackham’s Wiluna treatment plant.

It provides Blackham with access to additional free milling inventory for the operating plant at the Wiluna-Matilda Gold Operation.

READ: Blackham Resources’ Wiluna open pit restart targets high-grade gold

Blackham’s managing director Bryan Dixon said: “This GWR agreement represents an opportunity to partner with an emerging junior in the Wiluna district for the benefit of both parties.

“It is consistent with Blackham’s strategy of strengthening and lengthening its free milling reserves within trucking distance of its Wiluna gold plant.

“The agreement applies to 25-kilometres of prospective strike of free milling mineralisation with existing resources that has had limited drilling over the past 15 years.”

The Wiluna West Gold Project is 40 kilometres west of the Wiluna plant by road.

READ: Blackham Resources valued 4X its current price by Alternative Resource Capital

This binding heads of agreement provides for the establishment of a mineral processing joint venture (JV) which will see Blackham with a 65% share of profits and GWR with 35%.

The JV agreement is planned to be executed next month and will define the terms outlined in the heads of agreement.

GWR responsible for drilling and test work

Under these terms, GWR will be responsible for drilling the separate gold deposits to JORC 2012-compliant level with a minimum indicated category at their cost.

GWR will also be responsible for initial metallurgical test work and approvals associated with the deposits.

Blackham will manage JV

Blackham will be responsible for feasibility studies to determine the economic potential of the deposits.

Upon completion of a positive feasibility study, Blackham can elect to schedule the start of mining and processing of the reserves, which includes transportation.

Blackham will manage the JV, which includes the pre-development/mine set-up, mining operations and processing the gold ore from Wiluna West through the Wiluna plant.

Once mining starts all costs will be shared in proportion to the JV ownership with the bullion produced shared under the same ratio.

Potential mid-2019 start

Initial focus at Wiluna West will be on the Golden Monarch and Eagle/Emu deposits with approval processes well advanced and mining potentially beginning in mid-2019.

GWR has recently completed additional resource definition drilling and is undertaking the necessary ancillary studies to facilitate approvals.

Blackham’s Wiluna-Matilda operation is in Australia’s largest gold belt which stretches from Norseman through Kalgoorlie to Wiluna.

The operation now includes resources of 96 million tonnes at 2.2 g/t for 6.7 million ounces, all within 20-kilometres of the central processing facility.

READ: Blackham Resources boosts gold reserves by 27%

Ore reserves were recently boosted by 27% to 26 million tonnes at 1.8 g/t gold for 1.53 million ounces with further conversion of resource into reserves expected.

Free milling reserves now total 550,000 ounces, an increase of 190% on 2017.

Blackham has consolidated the entire Wiluna Goldfield within a more than 1,440 square kilometre tenure package which has historically produced in excess of 4.4 million ounces over a 120-year mining history.

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Fri, 23 Nov 2018 15:29:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209799/blackham-resources-agreement-over-wiluna-west-likely-to-boost-gold-free-milling-inventory-209799.html
<![CDATA[News - Blackham Resources valued 4X its current price by Alternative Resource Capital ]]> https://www.proactiveinvestors.com.au/companies/news/209333/blackham-resources-valued-4x-its-current-price-by-alternative-resource-capital-209333.html Blackham Resources Ltd’s (ASX:BLK) shares are trading at a heavy discount to peers, according to London-based Alternative Resource Capital (ARC).

ARC’s NPV analysis (diluted for future funding) points to a potential value of 18 cents per share, four times Blackham’s current share price.

ARC believes the current heavy market discount to NPV should erode as Blackham further demonstrates that last year’s production challenges are firmly behind it through future operational results delivering against targets.

The following is an extract from ARC’s institutional research note:

Having successfully consolidated and re-established production on one of Australia’s most prolific goldfields, Blackham is now well set to progress the next phase of growth from its 6.7 million ounces Wiluna portfolio.

A 2017 PFS demonstrated the merits of expanding into the higher-grade sulphides (70% of resources) and developing refractory processing capacity to increase overall gold production from the current 80-90,000 ounces per annum rate (all free-milling) to over 200,000 ounces per annum.

Potentially deliverable for a modest capital outlay of just $114 million, this could see AISC lowered to cUS$800/ounce and margins widened to 35-40%.

Year-on-year resource growth through acquisition and drilling

Moreover, with oxide reserve additions, current free-milling operations could be extended, pushing combined post-expansion production closer to 250,000 ounces per annum.

Yet Blackham’s shares are trading at a heavy discount to peers (2.4x forecast FY2019 cash margin and US$34/ounce reserve, vs sector averages of 5.5x and US$339/ounce), a hangover from production and financing challenges in 2017.

With operations now stabilised and near-term balance sheet pressures alleviated, we feel this mispricing offers a compelling entry point.

The Wiluna processing plant has been refurbished by Blackham

Our 18 cents per share diluted sum-of-parts valuation points to 4x upside.

And with scope for further optimisation and mine-life extension beyond that considered in our model, upside may be greater still.

Achieving operational targets, growing the free-milling inventory and completing expansion study work should kick-start an upwards re-rating, in our view, paving the way for funding and development of the expansion to more fully unlock Wiluna’s undoubted potential.

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Fri, 16 Nov 2018 12:50:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209333/blackham-resources-valued-4x-its-current-price-by-alternative-resource-capital-209333.html
<![CDATA[News - Blackham Resources boosts gold reserves by 27% ]]> https://www.proactiveinvestors.com.au/companies/news/208174/blackham-resources-boosts-gold-reserves-by-27-208174.html Blackham Resources Ltd (ASX:BLK) has increased its Ore Reserve by 27% to 26 million at 1.8 g/t gold for 1.53 million ounces at its Matilda-Wiluna Operation in Western Australia.

Notably, free milling Ore Reserves now total 550,000 ounces, an increase of 190% on last year.

Further conversion of the 6.7 million ounce resource into the Ore Reserve category is expected.

The opportunities to expand the free milling Ore Reserves at Lake Way, Golden Age and Wiluna have been highlighted from drilling over the last six months.

READ: Blackham Resources’ Wiluna open pit restart targets high-grade gold

Blackham’s managing director Bryan Dixon said: “An overall increase in reserves at Wiluna has shown the targeted drilling especially in the northern Wiluna Mine has resulted in a significant increase to both free milling and sulphide Ore Reserves.

“Open pit mining has now commenced at Wiluna to focus on the oxide material which is already providing higher grade feed to the Wiluna Processing Plant and will set a foundation for the next phase of the Wiluna Expansion.”

Four months life added to Golden Age underground mine

The Golden Age underground gold mine had been extended by a further four months to April 2019, which will provide further high-grade mill feed in the second half of FY19.

Another benefactor of the Ore Reserve increase was the Wiluna Open Pit reserves, which increased by 30% to 10.7 million tonnes at 2.5 g/t gold for 867,000 ounces.

This supports Wiluna’s expansion potential which includes converting the underground resources into reserves.

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Wed, 31 Oct 2018 09:02:00 +1100 https://www.proactiveinvestors.com.au/companies/news/208174/blackham-resources-boosts-gold-reserves-by-27-208174.html
<![CDATA[News - Blackham Resources’ Wiluna open pit restart targets high-grade gold ]]> https://www.proactiveinvestors.com.au/companies/news/207237/blackham-resources-wiluna-open-pit-restart-targets-high-grade-gold-207237.html Blackham Resources Ltd (ASX:BLK) has begun open pit mining at the Wiluna Gold Mine in Western Australia, initially targeting shallow free-milling ore close to the processing plant.

Mining last took place at Wiluna a decade ago and its restart reflects Blackham’s 2018 mine plan which aims to mine the remaining Matilda open pits concurrently with those at Wiluna.

Drilling programs totalling 100,000 metres undertaken at Wiluna over the past 18 months have delineated gold resources of 18.6 million tonnes at 2.52 g/t gold for 1.5 million ounces.

Open pit probable reserves are 7.7 million tonnes at 2.7 g/t for 669,000 ounces and will be updated in a Matilda-Wiluna reserve re-estimation currently underway.

  READ: Blackham Resources' potash partner receives regulatory approval milestone

Drilling completed since March this year has focused on the shallow free-milling mineralisation which holds a 96%-indicated 5.1 million tonne resource at 1.43 g/t for 236,000 ounces.

Oxide and transitional ore in the top 60-80 metres has been oxidised and comprises the bulk of the free-milling ore.

Metallurgical work on the oxide and transitional ores averaged leach recoveries of 90.8% and 84.3% after 24 hours.

READ: Blackham Resources farms out Wilconi project, delivers 150% increase in gold-silver revenue

Blackham expects the Wiluna restarts to increase plant feed grade, reduce haulage costs and substantially reduce mine-sequencing risks due to more mining areas.

Mining the free-milling pits will also reduce both geological and mining risks associated with the larger sulphide pits prior to recommissioning the Wiluna plant sulphide circuit.

READ: Blackham Resources secures $23 million from Lind to reduce short-term debt and expand gold production

The Wiluna-Matilda Gold Operation now includes 96 million tonnes at 2.2 g/t for 6.7 million ounces all within 20 kilometres of the central processing facility.

Blackham has consolidated the entire Wiluna goldfield within a plus-1,100 square kilometre tenement package which has produced more than 4.4 million ounces over a 120-year mining history.

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Tue, 16 Oct 2018 21:58:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207237/blackham-resources-wiluna-open-pit-restart-targets-high-grade-gold-207237.html
<![CDATA[News - Blackham Resources’ potash partner receives regulatory approval milestone ]]> https://www.proactiveinvestors.com.au/companies/news/206530/blackham-resources-potash-partner-receives-regulatory-approval-milestone-206530.html Blackham Resources Ltd’s (ASX:BLK) partner, Salt Lake Potash Ltd (ASX:SO4) has received approval to dewater the Williamson Pit near its Wiluna Gold Operation in Western Australia.

The Williamson Pit at Lake Way has a JORC Measured resource of 1.26 gigalitres of brine at an average SOP grade of 25 kilograms per metric metre, easily the highest grade SOP brine resource in Australia.

The government approval is to construct ponds totalling up to 133 hectares, as well as ancillary infrastructure to extract brine from the Williamson Pit.

Pursuant to an MoU Salt Lake Potash will dewater the pit ahead of Blackham re-entering the pit for mining.

READ: Blackham Resources confirms potash value through partner’s scoping study

A scoping study released in early August 2018 supported a low capex, highly profitable, staged development operation at Lake Way.

It had total capital costs of $49 million and average cash operating costs FOB of $387 per tonne sulphate of potash (SOP).

Under the MoU, SLP will acquire Blackham’s brine rights and Blackham will acquire gold rights to Salt Lake Potash's Lake Way holdings.

READ: Blackham Resources farms out Wilconi project, delivers 150% increase in gold-silver revenue

Blackham recently entered into a binding term sheet with A-Cap Resources Ltd (ASX:ACB) to farm-out a 75% interest in the nickel, cobalt and associated metals of the Wiluna Cobalt Nickel Project.

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Mon, 08 Oct 2018 12:11:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206530/blackham-resources-potash-partner-receives-regulatory-approval-milestone-206530.html
<![CDATA[News - Blackham Resources farms out Wilconi project, delivers 150% increase in gold-silver revenue ]]> https://www.proactiveinvestors.com.au/companies/news/206039/blackham-resources-farms-out-wilconi-project-delivers-150-increase-in-gold-silver-revenue-206039.html Blackham Resources Ltd (ASX:BLK) has entered into a binding term sheet with A-Cap Resources Ltd (ASX:ACB) to farm-out a 75% joint venture interest in the nickel, cobalt and associated metals of the Wiluna Cobalt Nickel (Wilconi) Project in WA.

The company also reported its financial results for the year ended June 2018 today, delivering a 150% increase in revenue from gold and silver sales.

Blackham shares were up 0.3 cents, or 7.14%, to 4.5 cents intraday.  

READ: Blackham Resources secures $2.3 million from Lind to reduce short-term debt and expand gold production

Blackham chairman Milan Jerkovic said the company was delighted to have partnered with A-Cap to add value to the Wiluna project.

He said: “This transaction is consistent with Blackham’s stated strategy of divesting non-core assets allowing it to focus on its Matilda-Wiluna Gold Operation.”

A-Cap will acquire an initial 20% JV interest by making a cash payment to Blackham of $2.8 million within two days of the parties entering into the staged JV agreement.

On making the payment A-Cap will also acquire third-party exploration data for a payment of $100,000.

READ: Blackham Resources drills more high-grade gold at Matilda-Wiluna, mining set to recommence this month

A second earn-in interest of a further 35% may be acquired by A-Cap for a cash payment of $500,000 within a period of 24 months and after incurring minimum expenditure on exploration activities.

The third earn-in interest of 20%, bringing the total JV interest held by A-Cap to 75%, will be subject to completing the project’s definitive feasibility study within 36 months, a cash payment of $1 million and an issue of $1.5 million worth of A-Cap shares.

A-Cap intends to immediately begin a drilling campaign to bring existing inferred resources at Wilconi into JORC 2012 standard,

It will also conduct step-out drilling to follow anomalous cobalt away from the currently defined zones.

  READ: Blackham Resources upgrades Matilda-Wiluna gold bounty to 6.7 million ounces

Blackham reported revenue of $118,252 for financial year 2018, up from last year’s $47,331, representing an increase of 150%.

All-in sustaining costs across Blackham’s operations were also reduced by 13%, from $1,875 per ounce to $1,629.

Gold production increased 79%, from 39,413 ounces to 70,565 ounces, and the gold sales price achieved was up 4% to $1,654 per ounce.

Strong production is expected to continue into financial year 2019 as high-grade material is accessed from the Wiluna open pits.

READ: Blackham Resources appoints Anthony Rechichi to the role of company secretary

Despite an overall loss for the year, the company increased production by 31% in the second half and continuously made improvements to its process plant, delivering record output of 535,000 milled tonnes in the June 2018 quarter.

The loss of $20 million for the year, with $14.4 million incurred in the first half, was mostly due to low first half gold production at the Matilda-Wiluna Gold Operation.

Blackham intends to consistently achieve production of 80,000 ounces a year and create a pathway to unlocking value in its sulphide resource.

Production guidance for financial year 2019 is 77-89,000 ounces at an all-in sustaining cost of $1,250-1,450 per ounce.

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Mon, 01 Oct 2018 00:15:00 +1000 https://www.proactiveinvestors.com.au/companies/news/206039/blackham-resources-farms-out-wilconi-project-delivers-150-increase-in-gold-silver-revenue-206039.html
<![CDATA[News - Blackham Resources secures $23 million from Lind to reduce short-term debt and expand gold production ]]> https://www.proactiveinvestors.com.au/companies/news/205590/blackham-resources-secures-23-million-from-lind-to-reduce-short-term-debt-and-expand-gold-production-205590.html Blackham Resources Ltd (ASX:BLK) has executed an agreement with an entity managed by The Lind Partners for an investment of up to $23 million in total capital.

The New York-based institutional fund manager will provide the initial funding commitment within seven business days.

Lind’s initial $7.5 million investment will be provided as a secured convertible note with a 24-month term, the proceeds of which will be used, along with Blackham’s current cash, to fully repay $13 million of short-term secured debt owed to Orion Fund JV Limited.

With the Orion debt fully repaid, Blackham will be able to re‐direct operational cash flows to expand its reserves and finalise the Wiluna Expansion Definitive Feasibility Study.

READ: Blackham Resources drills more high-grade gold at Matilda-Wiluna, mining set to recommence this month

The funding agreement includes repayment provisions that allow for conversion into Blackham shares, optional cash payments, or early repayment at Blackham’s sole discretion at any time. 

Blackham managing director Bryan Dixon said: “Blackham has significantly boosted its gold production since January 2018. 

“The current financing from Lind will remove short-term debt service payments, improve our balance sheet and allow us to reallocate operating cash flows to expand production levels.

“The Lind Partners has been a long‐time supporter of and investor in Blackham, and we are pleased to continue our relationship with Jeff Easton and The Lind Partners.”

READ: Blackham Resources upgrades Matilda-Wiluna gold bounty to 6.7 million ounces

Lind managing director Jeff Easton said: “We have been following Blackham since Lind’s first investment in 2012 and have seen them evolve from an explorer to a gold producer with a 6.7 Moz resource and a considerable growth story.

“We are thrilled to invest in Blackham again and support management’s strategic plans to expand operations to be one of Australia’s most significant gold mines.”

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Tue, 25 Sep 2018 11:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205590/blackham-resources-secures-23-million-from-lind-to-reduce-short-term-debt-and-expand-gold-production-205590.html
<![CDATA[News - Blackham Resources drills more high-grade gold at Matilda-Wiluna, mining set to recommence this month ]]> https://www.proactiveinvestors.com.au/companies/news/205186/blackham-resources-drills-more-high-grade-gold-at-matilda-wiluna-mining-set-to-recommence-this-month-205186.html Blackham Resources Ltd’s (ASX:BLK) resource extension drilling around the Golden Age North pit indicates strong potential for high grade, free-milling ore at the Matilda-Wiluna gold operation in Western Australia.

Latest high-grade hits include:

• 8 metres at 9.10 g/t gold from 87 metres, including 3 metres at 21.46 g/t gold; and
• 8 metres at 4.50 g/t gold from 74 metres, including 6 metres at 5.63g/t gold.

Golden Age North area showing pierce points of new and previous drilling

Background

Over that last seven years, Blackham has acquired over 1,100 square kilometres of mining and exploration tenure in the historical Wiluna goldfield which is part of Australia’s biggest gold belt.

Mining historically commenced in the goldfield in 1896 and since that time 4.4 million ounces of gold has been produced from Blackham’s current tenement holding.

The company has a significant resource base containing both styles of mineralisation currently sitting at 6.7 million ounces (Moz) of gold, of which 1.3 Moz is classified as free-milling resources.

READ: Blackham Resources upgrades Matilda-Wiluna gold bounty to 6.7 million ounces

Stage I free-milling gold production is the pre-curser to Blackham’s overall plan to realise the value associated with the sulphide refractory mineralisation style found in the Wiluna goldfield.

The company continues to actively appraise and refine its stage II production strategy.

Over the past two years, surface mining has focussed on the Matilda Mine.

READ: Blackham Resources achieves record half-year gold production at Matilda‐Wiluna

From this month, mining of higher grade ores will recommence at Wiluna, less than two kilometres from the current processing facility.

The pits have maximum depths of 50-80 metres and are designed to access oxide mineralisation treatable through the existing plant.

The initial planned pits are:

• The East-West pit – new pit with high grade ore accessible near surface;
• The Golden Age North pit – new pit along strike from the existing Golden Age pit;
• Happy Jack North – ore extensions to the existing pit in multiple directions; and
• Essex – deepening of the existing pit.

Mining at Wiluna is expected to further de-risk Blackham’s production profile with ore supply being closer to the processing plant with ore being higher-grade and near surface.

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Wed, 19 Sep 2018 15:49:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205186/blackham-resources-drills-more-high-grade-gold-at-matilda-wiluna-mining-set-to-recommence-this-month-205186.html
<![CDATA[News - Blackham Resources appoints Anthony Rechichi to the role of company secretary ]]> https://www.proactiveinvestors.com.au/companies/news/205072/blackham-resources-appoints-anthony-rechichi-to-the-role-of-company-secretary-205072.html Blackham Resources Ltd (ASX:BLK) has appointed chief financial officer Anthony Rechichi to the role of company secretary, following the resignation of Mike Robbins.

READ: Blackham Resources upgrades Matilda-Wiluna gold bounty to 6.7 million ounces

Blackham recently revealed an upgraded resource of 96 million tonnes at 2.2 g/t gold for 6.7 million ounces of gold at its Matilda-Wiluna Operation in Western Australia.

Mineral reserve calculation is currently underway and will be reported soon.

The changes in the resource results from the combined effects of successful further drill testing in some areas, mining depletions at Matilda, revised pit shells and the initial inclusion of the Wiluna Tailings mineralisation.

About 1.3 million gold ounces of the resource base is free-milling and can be processed through the existing Wiluna CIP (carbon-in-pulp) plant.

READ: Blackham Resources achieves record half-year gold production at Matilda‐Wiluna

Feasibility studies are currently being completed on Blackham’s 620,000 gold ounces of tailings with a view to treating them through the existing free milling circuit.

The remainder of the mineralisation is sulphide ore requiring treatment through the Wiluna sulphide circuit.

Blackham is working towards the completion of the feasibility study to justify the capital to re-establish the sulphide circuit and treat the sulphide ores.

Subject to a successful completion of the feasibility study and sourcing of the required funding, it is expected a decision to proceed will be made in 2019, enabling significantly higher gold production through exploiting the large and higher-grade feed sourced from both deeper pits and large-scale underground mining.

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Tue, 18 Sep 2018 12:21:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205072/blackham-resources-appoints-anthony-rechichi-to-the-role-of-company-secretary-205072.html
<![CDATA[News - Blackham Resources upgrades Matilda-Wiluna gold bounty to 6.7 million ounces ]]> https://www.proactiveinvestors.com.au/companies/news/204784/blackham-resources-upgrades-matilda-wiluna-gold-bounty-to-67-million-ounces-204784.html Blackham Resources Ltd (ASX:BLK) has revealed an upgraded resource of 96 million tonnes at 2.2 g/t gold for 6.7 million ounces of gold at its Matilda-Wiluna Operation in Western Australia.

Mineral reserve calculation is currently underway and will be reported soon.

The changes in the resource results from the combined effects of successful further drill testing in some areas, mining depletions at Matilda, revised pit shells and the initial inclusion of the Wiluna Tailings mineralisation.

About 1.3 million gold ounces of the resource base is free-milling and can be processed through the existing Wiluna CIP (carbon-in-pulp) plant.

READ: Blackham Resources’ drilling reveals large mineralised gold systems in Wiluna

Wiluna open pit resource now total 19 million tonnes at 2.5 g/t gold for 1.5 million ounces, delineated at a cost of $7/resource ounce.

The resource continuity at Wiluna has been reinforced with pit designs stretching about 3.7 kilometres.

Wiluna - Plan view of planned oxide (orange) and sulphide (green) pits design

Feasibility studies are currently being completed on Blackham’s 620,000 gold ounces of tailings with a view to treating them through the existing free milling circuit.

The remainder of the mineralisation is sulphide ore requiring treatment through the Wiluna sulphide circuit.

Blackham is working towards the completion of the feasibility study to justify the capital to re-establish the sulphide circuit and treat the sulphide ores.

READ: Blackham Resources achieves record half-year gold production at Matilda‐Wiluna

Subject to a successful completion of the feasibility study and sourcing of the required funding, it is expected a decision to proceed will be made in 2019, enabling significantly higher gold production through exploiting the large and higher-grade feed sourced from both deeper pits and large-scale underground mining.

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Thu, 13 Sep 2018 12:46:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204784/blackham-resources-upgrades-matilda-wiluna-gold-bounty-to-67-million-ounces-204784.html
<![CDATA[News - Blackham Resources’ drilling reveals large mineralised gold systems in Wiluna ]]> https://www.proactiveinvestors.com.au/companies/news/203648/blackham-resources-drilling-reveals-large-mineralised-gold-systems-in-wiluna-203648.html Blackham Resources Ltd’s (ASX:BLK) drilling has identified high-grade extensions to the free-milling Williamson deposit at the Lake Way prospect, part of its Wiluna Gold Operation in Western Australia.

Moreover, broad mineralised zones intersected at the Carroll and Prior prospects demonstrate the potential for large gold systems.

READ: Blackham Resources achieves record half-year gold production at Matilda‐Wiluna

Blackham’s exploration strategy is designed to extend the free-milling mine life to 5 years by targeting new discoveries and progressively converting the current large free-milling 1.3 million gold ounce resource base to reserves.

Williamson latest intercepts and historical intercepts confirm mineralisation south of existing pit design

At Williamson Southern Extensions, shallow high-grade mineralisation has been intersected up to 600 metres south of the planned Williamson pit cutback.

• 11 metres at 11.17 g/t gold from 39 metres including 2 metres at 53.05 g/t gold;
• 6 metres at 9.90 g/t gold from 17 metres; and
• 10 metres at 4.18 g/t gold from 47 metres including 2 metres at 9.37 g/t gold.

Notably, two high-grade zones show potential to be developed as satellite pits with further reserve definition drilling planned.

Carroll and Prior

Blackham’s maiden exploration drill holes along the Carroll-Prior trend intersected mineralisation in multiple discrete zones above an economic 0.6 g/t gold lower cut-off.

These significant intercepts occur within a very broad mineralised envelope, defined at a 0.3 g/t gold lower cut-off, with the potential to economically mine the entire package using bulk open pit techniques.

READ: Blackham Resources adds 620,000 ounces to gold bounty at Wiluna

Highlight results from Carroll-Prior include:

• 45.5 metres at 0.59 g/t gold from 232 metres;
• 87.12 metres at 0.91 g/t gold from 147 metres; and
• 116 metres at 0.63 g/t gold from 13 metres.

The results indicate the potential for Carroll and Prior to be part of a large-scale mineral system.

Blackham has been awarded a $150,000 grant under the state government’s Exploration Incentive Scheme for further drilling at Carroll– Prior prospects during FY 2019.

Forward Plan

The Lake Way area has had only limited exploration owing to the 3-9 metres of lake sediment cover obscuring lithology and masking obvious geochemical signatures.

The area is a major focus for resource expansion given it contains 6 kilometres of the highly prospective Wiluna Mine sequence and many significant intersections from past drilling.

READ: Blackham Resources adds mining and engineering skills to board of directors

Further reserve definition infill drilling is planned at the Williamson satellite deposits and under the Williamson pit ahead of finalising mine designs for the pit cutback, which is expected to begin in mid-2019.

The potential for nearby satellite deposits to be brought quickly into the mine plan will aid mine scheduling and further improve economic efficiencies.

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Tue, 28 Aug 2018 11:38:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203648/blackham-resources-drilling-reveals-large-mineralised-gold-systems-in-wiluna-203648.html
<![CDATA[News - Blackham Resources adds mining and engineering skills to board of directors ]]> https://www.proactiveinvestors.com.au/companies/news/201978/blackham-resources-adds-mining-and-engineering-skills-to-board-of-directors-201978.html Blackham Resources Ltd (ASX:BLK) has appointed Geoff Jones as a non-executive director as it prepares for the next phase of its evolution as a gold producer.

Jones adds further mining and engineering skills to the board as Blackham aims to deliver the goal to transition the Matilda-Wiluna Gold Operation into a 200,000 ounces per annum long-life mine.

He replaces Greg Miles who has announced his resignation as a non-executive director.

READ: Blackham Resources adds 620,000 ounces to gold bounty at Wiluna

Blackham’s chairman Milan Jerkovic said: “It is fantastic to have attracted a director of the calibre of Geoff Jones to the Blackham board.

“His extensive gold mining, project development and engineering skills will complement the rest of the board and management team well as we look to expand Blackham’s production capacity further.”

Miles thanked for contribution

Miles was fundamental in investigating and then securing the acquisition of the Matilda and Wiluna projects and consolidation of the entire Wiluna goldfield.

His intimate knowledge of geology in the region has helped to grow the original 300,000-ounce resource to the considerable 6.5 million ounce resource as it stands today.

Jerkovic said: “I would also like to personally thank Greg Miles for his immeasurable contribution to the company over the past seven years, particularly in helping to define and de-risk the company’s 6.5 million ounces of defined resource.”

READ: Blackham Resources confirms potash value through partner’s scoping study

Jones is managing director of GR Engineering Services Limited and is a civil engineer with over 30 years’ experience in construction, engineering, mineral processing and project development in Australia and overseas.

He previously worked for Baulderstone Hornibrook, John Holland, Minproc Engineers and Signet Engineering before serving over six years as group project engineer for Resolute Mining Limited (ASX:RSG).

Mining and engineering experience

In this role he was responsible for the development of Resolute’s mining projects in Australia, Ghana and Tanzania.

He also founded a project management and engineering consultancy concentrating on the management of projects for ASX listed companies in the resources sector.

Following the recent appointment of Tony James also as a non-executive director, Blackham has strengthened the experience, skill set and composition of its board and management team to match its focus on the successful delivery of near and longer-term mine plans.

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Wed, 01 Aug 2018 15:33:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201978/blackham-resources-adds-mining-and-engineering-skills-to-board-of-directors-201978.html
<![CDATA[News - Blackham Resources confirms potash value through partner’s scoping study ]]> https://www.proactiveinvestors.com.au/companies/news/201960/blackham-resources-confirms-potash-value-through-partners-scoping-study-201960.html Blackham Resources Ltd (ASX:BLK) is set to benefit from the positive results of a scoping study evaluating the development of a potash demonstration plant at Lake Way, near its gold operations.

Results support a low capex, highly profitable, staged development model with total capital costs of $49 million and average cash operating costs FOB of $387 per tonne sulphate of potash (SOP).

Salt Lake Potash’s (SLP) scoping study confirms expectations that a 50,000 tonnes per annum demonstration plant at Lake Way is the ideal model for starting development of the broader SOP project.

READ: Blackham Resources’ partner confirms nearby potash potential

In March 2018, the two companies entered a memorandum of understanding (MoU) to investigate the sulphate of potash opportunity.

SLP holds 290 square kilometres of tenure covering Lake Way near to Blackham’s Matilda-Wiluna Gold Project in Western Australia.

Blackham holds 64 square kilometres at the northern end of Lake Way.

Under the MoU, SLP will acquire Blackham’s brine rights and Blackham will acquire gold rights to SLP’s Lake Way holdings.

$667 per tonne SOP price

Scoping study managers, Wood, forecast a SOP price of $667 per tonne making this operation highly profitable.

The objective is to produce initial harvest salts in mid-late 2019 for initial SOP production in early 2020, subject to permitting, weather and other parameters.

There are potentially considerable time savings from utilising the super-saturated brines in the

Williamson Pit at Lake Way and test work continues to define these parameters.

Formalising the MoU

SLP is in the process of drafting a formal agreement with Blackham, in accordance with the MoU.

Both parties currently anticipate dewatering of the Williamson Pit in late 2018 to early 2019.

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Wed, 01 Aug 2018 08:41:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201960/blackham-resources-confirms-potash-value-through-partners-scoping-study-201960.html
<![CDATA[News - Blackham Resources eyes milling deal with GWR Group ]]> https://www.proactiveinvestors.com.au/companies/news/201774/blackham-resources-eyes-milling-deal-with-gwr-group-201774.html Blackham Resources Ltd (ASX:BLK) is advancing negotiations with GWR Group Ltd (ASX:GWR) regarding a milling agreement.

An agreement would see Blackham process feed from GWR’s Wiluna West Gold Project at its Matilda-Wiluna Gold operations located 40 kilometres away.

By securing additional feed for its processing plant, Blackham ensures its processing facilities are running at higher capacity, and likely higher profitability.

The companies originally signed a memorandum of understanding (MoU) for the potential treatment of gold deposits from GWR’s Wiluna West in January 2017.

READ: Blackham Resources adds 620,000 ounces to gold bounty at Wiluna

Last week, Blackham added a further 620,000 ounces to its gold bounty at the Wiluna Gold Operations in Western Australia.

The new ounces came from an initial resource estimate for the historical tailings which have accumulated at a site within two kilometres of Wiluna’s processing plant since the 1930s.

Recent metallurgical test work has shown that potential gold recoveries between 42-50% can be achieved through standard mining and gold leaching processes.

Blackham is also continuing its exploration programs into priority targets at the Lake Way prospect, the first new drilling in the area in 12 years.

READ: Blackham Resources achieves record half-year gold production at Matilda‐Wiluna

Notably, Blackham achieved record gold production of 40,024 ounces for the June half at its Matilda‐Wiluna Gold Operation, a 31% increase on the prior December half.

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Mon, 30 Jul 2018 08:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201774/blackham-resources-eyes-milling-deal-with-gwr-group-201774.html
<![CDATA[News - Blackham Resources adds 620,000 ounces to gold bounty at Wiluna ]]> https://www.proactiveinvestors.com.au/companies/news/201394/blackham-resources-adds-620000-ounces-to-gold-bounty-at-wiluna-201394.html Blackham Resources Ltd (ASX:BLK) has added a further 620,000 ounces to its gold bounty at the Wiluna Gold Operations in Western Australia.

The new ounces come from an initial resource estimate for the historical tailings which have accumulated at a site within 2 kilometres of Wiluna’s processing plant since the 1930s.

Recent metallurgical test work has shown that potential gold recoveries between 42-50% can be achieved through standard mining and gold leaching processes.

Blackham is also continuing its exploration programs into priority targets at the Lake Way prospect, the first new drilling in the area in 12 years.

READ: Blackham Resources achieves record half-year gold production at Matilda-Wiluna

Resources were estimated by Blackham for the various tailings impoundments using historical data and the data from two recent drill campaigns.

The first campaign of rotary auger drilling undertaken in 2017 tested tailings across six prospects and 26 holes, for a total of 475.5 metres.

Only 16 holes drilled in Dam H from this program were used in the resource estimation.

The second campaign of aircore drilling was completed last month, totalling 63 holes for 1,576 metres.

Tailings deposits at the Wiluna operations

  Tailings mostly from sulphides treatment

The tailings material has been deposited around the plant from over 4.4 million ounces of gold production over 80 years.

A significant proportion of the tailings result from processing of the Wiluna underground sulphide ores through the Biox plant over the last 13 years.

Historical processing records indicate the average tailings grade of these sulphides is 0.72 g/t.

The notable exception to the sulphides is material in the bottom part of Dam C, the largest single resource, with upper layers of sulphides and the lower part from oxide ore treatment.

These oxide and transitional ore residues are from the mining of the Wiluna open pits between 1985 and 1997.

READ: Blackham Resources bolsters board with appointment of experienced mining engineer

A scoping study was completed for the Wiluna tailings retreatment in 2016 by Independent Metallurgical Operations Pty Ltd.

It comprised preliminary metallurgical test work using Dam H tailings data and a review of potential recovery and treatment options for all storage facilities and pits.

The options considered produced acceptable financial returns and indicated a potential gold recovery of 42-50% via a whole of ore leach.

READ: Blackham Resources reveals potential to extend gold mining area at Golden Age

Initial test work confirmed the tailings material is sized between 38-75 microns, removing the need for further grinding and significantly reducing reprocessing costs.

The tailings can be treated through the current operating carbon-in-leach circuit without the need for further milling or concentration.

Blackham is continuing to undertake technical work on the tailings to confirm potential mining and processing options for possible integration into the company’s future operations.

Feasibility studies will be aimed at confirming the best metallurgical properties and optimal flowsheet; assessing best method of materials handling; and integration with the existing free milling and planned sulphide operations.

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Mon, 23 Jul 2018 23:42:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201394/blackham-resources-adds-620000-ounces-to-gold-bounty-at-wiluna-201394.html
<![CDATA[News - Blackham Resources achieves record half-year gold production at Matilda‐Wiluna ]]> https://www.proactiveinvestors.com.au/companies/news/201003/blackham-resources-achieves-record-half-year-gold-production-at-matildawiluna-201003.html Blackham Resources Ltd (ASX:BLK) has achieved record gold production of 40,024 ounces for the six months to June 2018 at its Matilda‐Wiluna Gold Operation in Western Australia, a 31% increase on the last half.

Resolution of the mine sequencing issues experienced in the December 2017 half have enabled improved gold production with mill feed comprising mainly higher grade run of mine ore and being less dependent on low-grade stockpiles.

Significant improvements were achieved to mill throughput (+12%) from continued debottlenecking of the crushing, milling and leaching circuits.

Blackham executive chairman Milan Jerkovic said: “The June half’s operational results demonstrate significantly stronger production and a step change in the operation’s economics that commenced in December 2017.

“Record production and significantly reduced costs underpinned stronger operational cash flows for the half.”

Substantial reduction in costs

All in sustaining costs (AISC) for the half were A$1,294 per ounce (Dec’17 half: A$2,063/ounce) resulting from a step change in economics being achieved during the half.

Excluding the impact of sustaining capex, which mainly comprised a tailings dam lift, AISC for the half was A$1,141/ounce.

Guidance for financial year 2019

Production guidance for the 6.5-million-ounce Matilda‐Wiluna Gold Operation in FY19 is 77,000‐89,000 ounces at an AISC (all-in sustaining cost) of A$1,250‐$1,450 per ounce.

FY19 AISC is expected to be higher than life of mine AISC, particularly in the first half, due to the investment required to strip new mining areas in the M1 and M2 pits to maintain a high mill throughput.

The second quarter will incur mobilisation costs of moving to the Wiluna open pits which are anticipated to underpin the long-term future of the operation.

Jerkovic added: “The company looks forward to increasing production in FY2019 as the operation transitions to the Wiluna open pits”

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Wed, 18 Jul 2018 14:26:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201003/blackham-resources-achieves-record-half-year-gold-production-at-matildawiluna-201003.html
<![CDATA[News - Blackham Resources bolsters Board with appointment of experienced mining engineer ]]> https://www.proactiveinvestors.com.au/companies/news/199359/blackham-resources-bolsters-board-with-appointment-of-experienced-mining-engineer-199359.html Blackham Resources Ltd (ASX:BLK) has strengthened its Board with the appointment of experienced mining engineer Tony James as a non-executive director.

This comes as the company focuses on the successful delivery of near and longer-term mine plans at the Matilda-Wiluna Gold Operation in Western Australia.

READ: Blackham Resources’ drilling extends high-grade free-milling mineralisation at Wiluna Mine

Chairman Milan Jerkovic, said: “The appointment of Tony James comes at a time when Blackham plans to transition its open pit mining operations from the Matilda mine back to the free milling ore bodies at the Wiluna mine.

"Tony will provide valuable experience in peer reviewing our geological, mining and processing plans at Wiluna moving forward.

"Tony’s experience will also be extremely valuable as Blackham progresses its development and expansion plans for the Wiluna operation’s 6.5 million ounces of gold resources.”

Considerable experience

James has considerable operational, new project development and corporate experience, including as managing director of Carbine Resources (ASX:CRB), Atherton Resources and Mutiny Gold.

While at Atherton he achieved a favourable outcome for shareholders which culminated in a cash takeover by Auctus Minerals.

At Mutiny he led the implementation of a revised development strategy for the Deflector copper-gold deposit before the merger of Mutiny and Doray Minerals (ASX:DRM).

Previous Alacer Gold executive

Prior to this, James held a number of senior executive positions with international gold producer Alacer Gold Corporation (TSE:ASR).

This included president of Alacer’s Australian operations following the merger between Anatolia Minerals (ASX:AQG) and Avoca Resources in 2011.

He also played a key role in Avoca’s initial growth and success, leading the feasibility, development and operations of the Higginsville Gold Operations.

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Fri, 22 Jun 2018 10:07:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199359/blackham-resources-bolsters-board-with-appointment-of-experienced-mining-engineer-199359.html
<![CDATA[News - Blackham Resources’ drilling extends high-grade free-milling mineralisation at Wiluna Mine ]]> https://www.proactiveinvestors.com.au/companies/news/199276/blackham-resources-drilling-extends-high-grade-free-milling-mineralisation-at-wiluna-mine-199276.html Blackham Resources Ltd (ASX:BLK) has revealed high-grade drilling results from the Wiluna Gold Project in Western Australia.

The high-grade free-milling mineralisation confirmed near the surface include:

• 20 metres at 4.84 g/t gold from 5 metres;
• 19 metres at 3.52 g/t gold from 3 metres;
• 19 metres at 6.36 g/t gold from 35 metres; and
• 7 metres at 7.62 g/t gold from 35 metres.

READ: Blackham Resources reveals potential to extend gold mining area at Golden Age

From March 2018 to May 2018, Blackham drilled 133 holes for 11,612 metres focused on delineating further free milling open pit reserves over the 3.7 kilometres of strike at the Wiluna Mine.

The latest results reported are from the final 66 holes received (5,326 metres).

All Wiluna Mine drilling assays have now been received and will be incorporated into Blackham’s next resources and reserves update anticipated in the September 2018 quarter.

READ: Blackham Resources drill results reveal potential for new open pits

It is worth noting that Blackham already has a probable reserve of 669,000 ounces of gold (7.7 million tonnes at 2.7 g/t gold) within the Wiluna open pit cutbacks.

The latest drilling results are expected to support substantial increases to open pit resources and reserves within the open pits.

Fast-tracking pit design and approvals to mine

Further drilling is planned to close out open-pit mineralisation ahead of finalising mine designs for the free milling starter pits.

Blackham’s next resources and reserves update will incorporate these results and is expected to be completed in the September 2018 quarter.

The company is currently fast-tracking pit designs and approvals to mine the high-grade East West Cross Structures and Golden Age North pits in the December 2018 quarter.

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Thu, 21 Jun 2018 14:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199276/blackham-resources-drilling-extends-high-grade-free-milling-mineralisation-at-wiluna-mine-199276.html
<![CDATA[News - Blackham Resources reveals potential to extend gold mining area at Golden Age ]]> https://www.proactiveinvestors.com.au/companies/news/198654/blackham-resources-reveals-potential-to-extend-gold-mining-area-at-golden-age-198654.html Blackham Resources Ltd’s (ASX:BLK) drilling has extended the mineralisation beyond current mining areas at the high-grade Golden Age orebody at the Wiluna Gold Project in Western Australia.

From March 2018 to May 2018, Blackham drilled 19 surface reverse circulation holes (2,117 metres) and 30 underground diamond holes (2,331 metres) focused on extensions to the Golden Age deposit.

Highlight drilling results include:

• 2 metres at 28.3 g/t gold from 75 metres;
• 6 metres at 7.97 g/t gold from 106 metres; and
• 2.1 metres at 43.6 g/t gold.

READ: Blackham Resources drill results reveal potential for new open pits

The drilling has confirmed that the Golden Age mineralisation is open both down and down dip, with mining to increasingly target the extensions defined from this drilling.

Blackham executive chairman Milan Jerkovic said: “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.

“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 A$1,092 per ounce”.

READ: Blackham Resources finds more effective processing option for Wiluna transitional gold ores

The Golden Age underground mine is accessed via the Bulletin portal located 2.5 kilometres from the 1.8 million tonnes per annum Wiluna gold plant.

The Golden Age workings commenced in the 1890’s and about 180,000 ounces at 9 g/t gold has been produced to date, with strong cash flows generated for the company in the last three quarters.

Golden Age lower extensions

The recent drilling results strongly support the potential for the continuation of underground mining at Golden Age and further drilling is now being planned (to commence in Jul-Aug’18) to establish an initial resource in this area.

Positive results may provide the catalyst for early access via the nearby Calais Decline to enable a substantial increase in the mining rate.

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Tue, 12 Jun 2018 12:06:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198654/blackham-resources-reveals-potential-to-extend-gold-mining-area-at-golden-age-198654.html
<![CDATA[News - Blackham Resources drill results reveal potential for new open pits ]]> https://www.proactiveinvestors.com.au/companies/news/196499/blackham-resources-drill-results-reveal-potential-for-new-open-pits-196499.html Blackham Resources Ltd (ASX:BLK) has received drill results that have identified potential for new open pits close to the plant at the Matilda-Wiluna Gold Project in Western Australia.

Significantly, the newly identified extensions to gold mineralisation unlock the potential to substantially extend the free-milling mine life of the project.

During March and April, Blackham drilled 130 reverse circulation (RC) holes for 11,446 metres focused on discovering new free milling open pit reserves at the Wiluna Mine.

Drilling is expected to finish in mid-May and resources will be re-estimated at that time.

Metallurgy has confirmed the ore as attractive mill feed

Drilling is focused on free milling ores above the top of fresh rock, generally the top 60 metres targeting oxide and transitional mineralisation.

Importantly, metallurgical test work has confirmed this material as being an attractive feed for the Wiluna CIL plant.

Last quarter the plant produced 20,631 ounces at an all-in sustaining cost (AISC) of $1,092 per ounce.

READ: Blackham Resources finds more effective processing option for Wiluna transitional gold ores

This drilling is a follow-up to the 77,000-metre program that successfully delivered probable reserves of 669,000 ounces.

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.

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

Highlights from recent results include:

• 16 metres at 4.41 g/t gold from 2 metres;
• 10 metres at 1.48 g/t gold from 9 metres;
• 8 metres at 2.03 g/t gold from 5 metres;
• 12 metres at 1.79 g/t gold from 33 metres;
• 4 metres at 6.59 g/t gold from 85 metres;
• 6 metres at 6.00 g/t gold from 55 metres;
• 7 metres at 4.68 g/t gold from 48 metres; and
• 25 metres at 1.14 g/t gold from 10 metres.

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Tue, 08 May 2018 10:44:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196499/blackham-resources-drill-results-reveal-potential-for-new-open-pits-196499.html
<![CDATA[News - Blackham Resources finds more effective processing option for Wiluna transitional gold ores ]]> https://www.proactiveinvestors.com.au/companies/news/196205/blackham-resources-finds-more-effective-processing-option-for-wiluna-transitional-gold-ores-196205.html Blackham Resources Ltd’s (ASX:BLK) tests have confirmed that transitional ores from the Matilda-Wiluna Gold Project can be processed through the existing CIL plant at a lower cost and improved recovery rate.

There is a substantial amount of free milling oxide and transitional ores above the top of fresh rock at open pits over the 4 kilometres of strike at Wiluna, which is in Western Australia.

READ: Blackham Resources delivers strong production growth and reaffirms June half-year guidance

It was originally assumed in the August 2017 Wiluna expansion pre-feasibility study that this would be processed through the existing sulphide circuit.

However, new test work has demonstrated that the transitional ore gains higher recoveries through the operating CIL plant.

Cost about 30% less

It has also revealed that the processing cost is about 30% less than utilising the sulphide circuit.

Average leach recoveries on the oxide ores were 90.8% after 24 hours with little increase in recovery after that while recoveries on the transitional ores were 84.3%.

The brown and green oxide and transitional only pit optimisations in historical open pits

show the potential for free milling ore.

The test work on Wiluna oxide and transitional ores was carried out by Independent Metallurgical Operations Pty Ltd under the supervision of Blackham.

Follow-up drilling has been completed to obtain additional transitional ore samples for the next round of metallurgical test work.

Drilling results soon

During March 2018 Blackham drilled 84 reverse circulation holes for 6,491 metres focused on delineating further free milling open pit reserves and initial results are expected shortly.

This program followed up on 77,000 metres of drilling completed in 2017 which delivered probable reserves of 669,000 ounces of gold and included oxide, transitional and fresh reserves.

All of the historical open pits at the mine were processed through the CIL plant with the exception of the 2007 East pit cut back.

READ: Blackham Resources’ partner confirms nearby potash potential

Blackham is re-estimating the open pit free milling resources and reserves around the Wiluna mine site.

Management believes the free milling ores within the existing Wiluna mine footprint are an attractive feedstock for the operating mill and allows for fast-tracking mining approvals.

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Wed, 02 May 2018 13:33:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196205/blackham-resources-finds-more-effective-processing-option-for-wiluna-transitional-gold-ores-196205.html
<![CDATA[News - Blackham Resources’ partner confirms nearby potash potential ]]> https://www.proactiveinvestors.com.au/companies/news/195807/blackham-resources-partner-confirms-nearby-potash-potential-195807.html Blackham Resources Ltd (ASX:BLK) recently entered a memorandum of understanding (MoU) with Salt Lake Potash (ASX:SO4) to investigate a sulphate of potash opportunity.

Surface sampling on Blackham’s tenements has confirmed an average sulphate of potash (SOP) grade of over 14 kilograms per cubic metre.

This makes Lake Way one of Australia’s highest grade SOP brine sources.

A total of 23 pit samples were collected encountering brine at a standing water level generally less than 1 metre from surface.

READ: Blackham Resources does deal to evaluate nearby potash potential

Salt Lake Potash (SLP) holds 290 square kilometres of tenure covering Lake Way near to Blackham’s Matilda-Wiluna Gold Project in Western Australia.

Blackham holds 64 square kilometres at the northern end of Lake Way.

Under the MoU, SLP will acquire Blackham’s brine rights and Blackham will acquire gold rights to SLP’s Lake Way holdings.

Ideal site for our SOP demonstration plant

SLP is investigating the development of an SOP operation on Blackham’s existing mining leases at Lake Way, including initially a 50,000 tonnes per annum demonstration plant.

SLP will complete a scoping study for a potential SOP operation at Lake Way, including a demonstration plant, by mid-2018.

Due to available historical data and technical work undertaken by SLP at other lakes, the scoping study can be undertaken in a much shorter time frame.

Surface aquifer exploration and process test work planned

SLP is in the process of mobilising a drill rig and an amphibious excavator on the Lake to complete an initial surface aquifer exploration program.

The surface aquifer program will include the construction of test pits and trenches for long-term pump testing.

Furthermore, SLP has commenced a range of process development test work including process pathway modelling, a bulk sample evaporation trial and site-based evaporation trial at Lake Way.

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Thu, 26 Apr 2018 12:25:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195807/blackham-resources-partner-confirms-nearby-potash-potential-195807.html
<![CDATA[News - Blackham Resources delivers strong production growth and reaffirms June half year guidance ]]> https://www.proactiveinvestors.com.au/companies/news/194989/blackham-resources-delivers-strong-production-growth-and-reaffirms-june-half-year-guidance-194989.html Blackham Resources Ltd (ASX:BLK) has delivered quarter-on-quarter production growth of 38% for the March quarter at its Matilda-Wiluna gold operation in Western Australia.

The company set three consecutive months of gold production records in the March quarter with total production of 20,631 ounces leaving it well-placed to meet guidance.

Management reaffirms guidance

Blackham has confirmed prior June half-year guidance in a range between 40,000 ounces and 45,000 ounces.

Management is forecasting all in sustaining costs (AISC) for the period to be in a range between $1,100 and $1,200.

The average realised gold price for the March quarter was $1,669 per ounce.

The company will benefit from forward sales of 29,417 ounces at $1,725 per ounce over the next nine months.

Financial strength returning

There was strong shareholder support for a $36 million capital raising in January.

This along with increased gold sales has strengthened the company’s financial position.

Net debt has been reduced to $10.4 million, and the group has cash and bullion of $29.6 million.

Exploration strategy

Reserve definition drilling will continue this quarter as Blackham looks to increase its gold reserves from 15 million tonnes at 2.5 g/t for 1.2 million ounces.

Management aims to convert more of its 6.5 million ounces of resources to reserves.

Blackham has committed to significant ongoing exploration drilling including the acceleration of this reserve conversion work.

The company is also conducting exploration drilling targeted at new oxide deposits to extend the current free milling mine life.

Over the last 12 months, Blackham has added reserves at a cost of less than $22 per reserve ounce.

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Mon, 16 Apr 2018 09:01:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194989/blackham-resources-delivers-strong-production-growth-and-reaffirms-june-half-year-guidance-194989.html
<![CDATA[News - Blackham Resources continues step-change with record gold production and reduced costs ]]> https://www.proactiveinvestors.com.au/companies/news/194465/blackham-resources-continues-step-change-with-record-gold-production-and-reduced-costs-194465.html Blackham Resources Ltd (ASX:BLK) remains on track with its turnaround after achieving record gold production during the March quarter at significantly reduced costs.

There were 20,631 ounces produced at the Matilda-Wiluna Gold Operation in Western Australia in the three months, up 38% on the previous quarter.

Lower stripping rates and increased production saw Blackham reduce all-in-sustaining-costs (AISC) to $1,092 per ounce in the quarter, down 42% on the December 2017 quarter.

READ: Blackham Resources generates strong February gold production, continues turnaround

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

“Record production and significantly reduced costs underpinned a quarter of strong operational cash flows, 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.”

Record monthly production

The company also achieved record monthly production of 7,419 ounces in March, up 11% on February.

There were 165,000 tonnes milled in March, up from 150,000 tonnes in February.

Stronger gold production has been achieved after the company gained access to high-grade zones in the M4 and Galaxy pits late in the December 2017 quarter.

This has been boosted by lower open pit mining stripping ratio of 2.5:1 during the March quarter.

The average realised gold price during the quarter was $1,669 per ounce, representing an encouraging margin for Blackham.

READ: Blackham Resources extends production at Golden Age and seeks to extend mine plan

In the September and December quarters of 2017, 248,000 tonnes and 206,000 tonnes of low-grade stockpiles were processed respectively at an average grade of 0.7 g/t.

This significantly reduced mill feed grade for those quarters but during the March 2018 quarter, it improved to 1.5 g/t while throughput increased 8% on the previous quarter.

Plant recoveries decreased slightly as deeper ore from the M4 pit was processed.

High-grade stockpiles totalled 127,000 tonnes at 1.5g /t at the end of the quarter.

This was lower than forecast in January 2018 due to lower mining material movements.

READ: Blackham Resources does deal to evaluate nearby potash potential

Blackham’s transition in 2018 is supported by gold forward sales contracts of 27,400 ounces at A$1,724 per ounce for the remainder of the year.

At March 31 the company had cash and bullion of $29.2 million and secured debt of $40 million.

Production guidance for the first half of 2018 remains at 40,000 to 45,000 ounces at an AISC of $1,100 to $1,200.

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Mon, 09 Apr 2018 10:04:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194465/blackham-resources-continues-step-change-with-record-gold-production-and-reduced-costs-194465.html
<![CDATA[News - Blackham Resources extends production at Golden Age and seeks to extend mine plan ]]> https://www.proactiveinvestors.com.au/companies/news/193337/blackham-resources-extends-production-at-golden-age-and-seeks-to-extend-mine-plan-193337.html Blackham Resources Ltd’s (ASX:BLK) Golden Age underground gold mine plan continues to grow with it being extended for a further 6 months to December 2018.

After successfully moving to an owner-operator miner in October 2017, the company has reduced mining costs and alleviated some risks.

This news comes less than a fortnight after the company announced strong increases in production and lower costs at its Matilda-Wiluna gold operation.

READ: Blackham Resources surges 40% as output increases and costs fall

In 2017, Blackham commenced evaluation of the economics of the remaining Golden Age underground resource of 900,000 tonnes at 4.5 g/t for 129,000 ounces gold.

Reevaluation adds 4,700 ounces

These mining studies have now added another 24,600 tonnes at 6 g/t for 4,700 ounces of production targeted between July to December 2018.

Bryan Dixon, managing director said: “Blackham has successfully added another six months to the Golden Age Underground mine plan and is aiming to maintain a 6 to 12 -month rolling mine plan going forward.”

This additional targeted production is incremental to the previously disclosed underground mine plan which finished in June 2018.

Historical production of 160,000 ounces

Production is now expected to continue to produce about 2,500 ounces per quarter through to at least December 2018.

However, there is the possibility of resource expansion.

Dixon said: "This week’s drilling will commence down dip and down plunge from where we are currently mining strong grades at Golden Age.”

Historical production of 160,000 ounces

The Golden Age underground deposit is a high grade and free-milling gold-rich quartz vein.

Historically, the Golden Age underground has produced 160,000 ounces at 9 g/t gold.

Since recommissioning this mine, Blackham has produced 19,500 ounces at 4.7 g/t gold.

Potential to extend resource

Over the last eight months, Blackham’s geology team has identified several priority targets.

Underground drilling will commence this week aimed at further extending the mine plan and potentially allowing an increased mining rate. 

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Mon, 19 Mar 2018 10:02:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193337/blackham-resources-extends-production-at-golden-age-and-seeks-to-extend-mine-plan-193337.html
<![CDATA[News - Blackham Resources does deal to evaluate nearby potash potential ]]> https://www.proactiveinvestors.com.au/companies/news/192958/blackham-resources-does-deal-to-evaluate-nearby-potash-potential-192958.html Blackham Resources Ltd (ASX:BLK) has entered a memorandum of understanding (MoU) with Salt Lake Potash (ASX:SO4) to investigate a sulphate of potash opportunity.

Salt Lake Potash holds 290 square kilometres of tenure covering Lake Way near to Blackham’s Matilda-Wiluna Gold Project in Western Australia.

READ: Blackham Resources generates strong February gold production, continues turnaround

Blackham holds 64 square kilometres at the northern end of Lake Way.

MoU will exchange brine and gold rights

Salt Lake Potash (SLP) wants to investigate the potential development of a sulphate of potash (SOP) operation based at Lake Way.

Under the MoU, SLP will acquire Blackham’s brine rights and Blackham will acquire gold rights to SLP’s Lake Way holdings.

Each company will retain a royalty on their respective holdings.

Blackham’s tenure hosts the historical Williamson pit

Within Blackham’s 64 square kilometres is the Williamson pit, last mined in 2006.

Significantly, it is now filled with brine at a high grade of 25 kilograms per cubic metre of SOP.

Williamson pit brine ideal starter feed for evaporation ponds

SLP will investigate the development of an SOP operation at Lake Way, including initially a 40-50,000 tonnes per annum demonstration plant.

SLP would dewater the existing Williamson pit, prior to Blackham mining, planned for early 2019.

The pit’s brine is potentially the ideal starter feed for evaporation ponds, having already evaporated from the normal Lake Way brine grade.

SLP will complete a scoping study for a potential SOP operation at Lake Way, including a demonstration plant, by mid-2018, in time to allow a decision on dewatering the Williamson pit.

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Mon, 12 Mar 2018 11:53:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192958/blackham-resources-does-deal-to-evaluate-nearby-potash-potential-192958.html
<![CDATA[News - Blackham Resources generates strong February gold production, continues turnaround ]]> https://www.proactiveinvestors.com.au/companies/news/192885/blackham-resources-generates-strong-february-gold-production-continues-turnaround-192885.html Blackham Resources Ltd (ASX:BLK) has had more than its fair share of twists and turns since being one of the best performing microcap gold stocks in the first half of 2016 with its shares increasing five-fold to a high of 81 cents.

While its shares retraced substantially in 2017, the Matilda-Wiluna Gold Project in Western Australia has now hit another gear, suggesting there could be a return to share price growth.

While the company faced its share of challenges in 2017, it appears to have negotiated a number of issues that weighed on its share price.

Furthermore, recent strong buying suggests that its shares could be oversold as it surged more than 40% last Thursday under record daily traded volumes of about 300 million.

Annualised production of 80,000 ounces

A key catalyst behind this re-rating was the record monthly gold production of 6,713 ounces achieved in February, which comes on the back of nearly 6,500 ounces produced in January.

The first two months of production in 2018 translates into annualised production of 80,000 ounces.

It would be difficult to find another sub-$100 million market capitalisation ASX-listed gold producer with this production profile.

Management confident of achieving strong cash flow

While this annual production is yet to be achieved, the signs are promising.

Milan Jerkovic, executive chairman, said: “Record production and further reduced costs from the operation underpinned another month of strong cashflow, whilst maintaining stockpiles with increased grades.

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

On the score of cashflow, it is worth noting that the company had cash and bullion of $31.4 million and secured debt of $43.8 million as at February 28, which leaves it well-positioned to continue its optimisation procedures.

Continued improvements in production and costs

February’s open pit mining strip ratio was a low 1.5:1 waste to ore as opposed to 3.6:1 in January.

The low stripping ratio and increased gold production resulted in Blackham achieving record low monthly all in sustaining costs (AISC) in February of $912 per ounce compared with $1,158 per ounce in January.

The average realised gold price during February was $1,670 per ounce.

With the Australian dollar gold price hovering in the vicinity of $1,700 one would expect the company to generate strong cashflow again in March.

This implies a margin of nearly $800 per ounce.

Growing high-grade stockpiles set the scene for March

Another feature of the company’s operations in February was the increase in high-grade stockpiles to 144,000 tonnes at 1.7 grams/tonne (g/t) gold.

Milled grade and gold production are expected to continue to improve during the month with the increasing grade of the mill feed stockpiles.

Gold reserves also support a share price re-rating

Blackham has a gold resource of 65 million tonnes at 3.1 g/t gold, equating to a resource of 6.5 million ounces, and reserves of 15 million tonnes at 2.5 g/t for 1.2 million ounces.

An expanded prefeasibility study confirmed the potential to generate annual production of 200,000 ounces.

Given the company has 1,000 square kilometres of landholdings in Australia’s largest gold belt, there is also the potential for exploration upside.

Now that Blackham has optimised the Matilda-Wiluna gold operation there is the prospect of refocusing on exploration.

Cashflow from existing operations would assist the company in self-funding exploration initiatives.

Blackham now broadly in line with analyst’s expectations

It is worth examining the responses of analysts to some of the disappointments that occurred in 2017.

While Canaccord noted the lower production figures and higher production costs in the six months to June 30, 2017, the broker maintained its price target of 80 cents per share.

This was recognition of the value of the company’s underlying assets including its forward production profile.

At that stage, the broker was projecting annual production of about 90,000 ounces in fiscal 2018.

While it would appear that the company won’t ramp up to that level until fiscal 2019, it could be argued that Blackham now has the production profile and operational stability to support Canaccord’s share price target.

Despite negative sentiment towards the stock, the consensus share price target still stands at 25 cents, implying upside of more than 200% to Friday’s closing price of 8.1 cents.

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Fri, 09 Mar 2018 08:55:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192885/blackham-resources-generates-strong-february-gold-production-continues-turnaround-192885.html
<![CDATA[News - Blackham Resources surges 40% as output increases and costs fall ]]> https://www.proactiveinvestors.com.au/companies/news/192801/blackham-resources-surges-40-as-output-increases-and-costs-fall-192801.html Blackham Resources Limited (ASX:BLK) surged after a record month for its Matilda-Wiluna gold operation - one in which output increased and costs were significantly reduced, resulting in strong cash flows.

The company is a leading ASX gainer with shares up 40% in early afternoon trade to 7.5 cents on strong volume of more than 248 million.

Output from the Western Australia mine was 6,713 ounces of the yellow metal, up from 6,498 ounces as 150,000 tonnes of ore was milled.

Costs down significantly

All in sustaining costs fell 21% to $912 an ounce, while the average realised price was $1,670, making for a healthy profit margin from production.

As at the end of last month, Blackham was sitting on cash and bullion of $31.4 million, while it had secured debt of $43.8 million.

“We remain confident that 2018 will be a transformational year that will generate significant cash flows and value for Blackham and its shareholders,” said the company’s chairman Milan Jerkovic.

Despite significant rainfall and lightning during the month, which restricted mining operations, high-grade stockpiles have increased to 144,000 tonnes at 1.7 grams of gold per tonne.

Headed in the right direction

Chairman Jerkovic added: “February’s operational results demonstrate a continued improvement of the turnaround that commenced in December 2017. 

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

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Thu, 08 Mar 2018 10:26:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192801/blackham-resources-surges-40-as-output-increases-and-costs-fall-192801.html
<![CDATA[News - Blackham Resources has a new substantial shareholder ]]> https://www.proactiveinvestors.com.au/companies/news/192015/blackham-resources-has-a-new-substantial-shareholder-192015.html Blackham Resources Ltd (ASX:BLK) has a new substantial shareholder in Regal Funds Management Pty Limited, which holds an interest of 5.19%.

Regal Funds has purchased almost 65.666 million shares at a price of $0.04 each.

It holds more than 24.8 million shares through Merrill Lynch (Australia) Nominees Pty Limited and more than 40.8 million through UBS Nominees Pty Ltd.

READ: Blackham Resources settles $35.9 million and appoints ex ASX 200 CFO to board

This week Blackham settled a rights issue which raised $35.9 million through the issue of 897.6 million shares and 448.8 million options.

The funds place Blackham in a strong position to execute on its free milling mine plan at the Matilda-Wiluna Gold Operation in Western Australia.

This plan includes exploration focused on growing free milling mine life.

Drilling to start next week

For this purpose, Blackham intends to start an initial drilling program next week.

Drilling will focus on growing free milling reserves through resource conversion and identifying additional mineralisation to maintain a free milling mine life greater than five years.

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Thu, 22 Feb 2018 08:31:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192015/blackham-resources-has-a-new-substantial-shareholder-192015.html
<![CDATA[News - Blackham Resources settles $35.9 million and appoints ex ASX 200 CFO to board ]]> https://www.proactiveinvestors.com.au/companies/news/191862/blackham-resources-settles-359-million-and-appoints-ex-asx-200-cfo-to-board-191862.html Blackham Resource Ltd (ASX:BLK) has now settled the rights issue which raised $35.9 million in funding through the issue of 897.6 million shares and 448.8 million options.

Normal trading of the new shares and options is expected to commence today.

Funding places Blackham in a strong position to execute on its free milling mine plan, as well as to advance exploration focused on growing its free milling mine life.

READ: Blackham Resources surges 30% after record monthly gold production at low costs

Furthermore, Greg Fitzgerald has been formally appointed as a non-executive director to the board.

Fitzgerald is a chartered accountant with more than 30 years of gold mining and resources related experience

Notably, he held the positions of chief financial officer (CFO) and company secretary for ASX 200 company, Resolute Mining Limited (ASX:RSG), for more than 15 years.

Multiple drill programs to commence

Blackham plans to commence a number of drilling programs focused on growing free milling reserves through resource conversion.

Drilling will also focus on identifying additional mineralisation to maintain a free milling mine life greater than 5 years.

The initial drill program will commence next week and more information on the targets will be provided shortly.

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Tue, 20 Feb 2018 08:47:00 +1100 https://www.proactiveinvestors.com.au/companies/news/191862/blackham-resources-settles-359-million-and-appoints-ex-asx-200-cfo-to-board-191862.html
<![CDATA[News - Blackham Resources offer strongly supported, raises $31.16 million ]]> https://www.proactiveinvestors.com.au/companies/news/191596/blackham-resources-offer-strongly-supported-raises-3116-million-191596.html Blackham Resources Ltd (ASX:BLK) received a strong level of acceptances for its fully underwritten, renounceable pro-rata entitlement offer, raising $31.16 million.

Applications for entitlements totalling $26.19 million, before costs, were received from existing shareholders and rights holders, representing acceptances of circa 73%.

In addition, Blackham received additional applications from existing shareholders for a further $4.97 million to give a total shareholder take-up of up to 87%.

READ: Blackham Resources surges 30% after record monthly gold production at low costs

Milan Jerkovic, chairman, said: “It was very pleasing to see such a high level of participation in the entitlement offer and I would like to thank all shareholders for their continued and valued support.

“We would also like to take the opportunity to welcome our new shareholders who will be taking up shortfall securities pursuant to the issue of shortfall securities to sub-underwriter clients of Hartleys Limited.

“Blackham in a strong position”

“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 focused on growing our free milling mine life.

“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.”

READ: Blackham Resources raising $36 million to support gold growth strategy

Under the offer, Blackham is able to issue circa 897.67 million new shares on the basis of five new shares for every two Blackham shares held on the record date at an issue price of $0.04 per share.

The offer also included one free attaching option, exercisable at $0.08 on or before 31 January 2019, for every two new shares subscribed for.

The anticipated date for despatch of holding statements for the new shares and new options is 20 February 2018.

Normal trading of the new shares and new options is also expected to start on 20 February 2018.

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Wed, 14 Feb 2018 08:29:00 +1100 https://www.proactiveinvestors.com.au/companies/news/191596/blackham-resources-offer-strongly-supported-raises-3116-million-191596.html
<![CDATA[News - Blackham Resources surges 30% after record monthly gold production at low costs ]]> https://www.proactiveinvestors.com.au/companies/news/191341/blackham-resources-surges-30-after-record-monthly-gold-production-at-low-costs-191341.html Blackham Resources Ltd (ASX:BLK) has provided a promising update for the month of January in relation to its Matilda-Wiluna Gold Operation located in Western Australia.

Access to high-grade zones in the M4 and Galaxy pits was achieved late in the December quarter.

This contributed to record monthly gold production of 6,498 ounces and a low stripping ratio of 3.6:1 (waste:ore) during January.

Management flagged a significant uptick in production in early January.

READ: Blackham Resources accesses high grade ore at gold operation Record low monthly all in sustaining costs (AISC)

The improved operational performance resulted in Blackham achieving a record low monthly AISC in January of $1,158 per ounce.

This implies a strong margin when compared with an average realised gold price during the month of $1,663 per ounce, demonstrating a clear step change in economics.

Milan Jerkovic, executive chairman, said: “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.

“This operational performance, in conjunction with the current strong Australian dollar gold price, is expected to make 2018 a transformational year.

“As a result, Blackham expects to generate significant cash flows and value for Blackham's shareholders.”

High-grade stockpiles being built

Milled grade and gold production are expected to continue to improve throughout the March quarter.

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

During February, Blackham expects to mine circa twice as much high-grade ore as it will process, providing strong operational flexibility.

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Thu, 08 Feb 2018 10:16:00 +1100 https://www.proactiveinvestors.com.au/companies/news/191341/blackham-resources-surges-30-after-record-monthly-gold-production-at-low-costs-191341.html
<![CDATA[News - Blackham Resources seeks acceptances for $36 million entitlements offer ]]> https://www.proactiveinvestors.com.au/companies/news/190865/blackham-resources-seeks-acceptances-for-36-million-entitlements-offer-190865.html Blackham Resources Ltd (ASX:BLK) has sent eligible shareholders acceptance documents for a fully underwritten entitlements offer in which it aims to raise up to $36 million.

An entitlement offer prospectus together with an entitlement and acceptance form have been sent by the gold producer.

The renounceable pro-rata issue is for 897 million new shares on the basis of five new shares for every two existing shares held at 17:00 (WST) on 29 January 2018.

READ: Blackham Resources raising $36 million to support gold growth strategy

An issue price of $0.04 per new share applies to the offer, together with one free attaching listed $0.08 option expiring on 31 January 2019 for every two new shares issued.

Funds raised will underpin growth of its Matilda-Wiluna Gold Operation in Western Australia, at which high-grade ore is being accessed.

Blackham has received strong demand from its domestic and international institutional and professional investor network to participate in sub-underwriting the issue.

Closing date for acceptances is Tuesday 6 February 2018 and trading of the new shares is expected to begin on Tuesday 20 February.

READ: Blackham Resources implements initial stages of recapitalisation strategy

The renounceable rights issue is the final step in Blackham’s recapitalisation strategy.

It will maintain a sound cash position once the issue is complete and all relevant payments have been made, with cash expected to remain above $15 million during 2018.

During 2018 the company intends to achieve strong cash flow generation from operations and end the year in a net cash position.

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Wed, 31 Jan 2018 10:15:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190865/blackham-resources-seeks-acceptances-for-36-million-entitlements-offer-190865.html
<![CDATA[News - Blackham Resources raising $36 million to support gold growth strategy ]]> https://www.proactiveinvestors.com.au/companies/news/190419/blackham-resources-raising-36-million-to-support-gold-growth-strategy-190419.html Blackham Resources Ltd (ASX:BLK) expects the $36 million to be raised in a fully underwritten rights issue will underpin growth of its gold operations in Western Australia.

The launch of the 5:2 renounceable rights issue is the final step in Blackham’s recapitalisation strategy.

The company will maintain a sound cash position once the issue is complete and all relevant payments have been made, with cash expected to remain above $15 million during 2018.

READ: Blackham Resources implements initial stages of recapitalisation strategy

It has received strong demand from its domestic and international institutional and professional investor network to participate in sub-underwriting the issue.

Milan Jerkovic, executive chairman, said: “It is very pleasing to see the level of interest in the entitlements issue received during the sub-underwriting process as well as the high quality of investors that have entered into sub-underwriting agreements.

“With the issue fully underwritten, we can now move forward with the final stage of our recapitalisation strategy.

“Blackham will be well funded with a strong balance sheet to enable us to focus initially on a simple free milling mine plan at the Matilda-Wiluna Gold Operation and enjoy a period of stable gold production having recently accessed high grade ore zones.

Company at “exciting stage”

“The company is at an exciting stage, with 2018 expected to be a transformational year of strong operational performance that is likely to generate significant cash flow and value for Blackham and its shareholders.”

During 2018 the company intends to achieve strong cash flow generation from operations and end the year in a net cash position.

Debt repayment plan

By the end of the year it also aims to repay the $23 million project financing facility with Orion Fund JV Limited, which will stand at $20.5 million after the Entitlements Issue.

This year will also see Blackham continue exploration drilling targeting an ongoing five-plus year free-milling mine life.

The entitlements issue is for up to 897 million new shares on the basis of five new shares for every two existing shares held by eligible shareholders at an issue price of $0.04 per new share.

It also includes one free attaching listed $0.08 option expiring on 31 January 2019 for every two new shares issued.

Reduction in sub-underwriting commitments

MACA Limited, Orion Fund JV Limited and PYBAR Mining Services Pty Limited originally agreed to provide sub-underwriting pre-commitments of up to $8 million, $2.5 million and $2.5 million respectively.

However, the high level of demand for sub-underwriting resulted in an agreed reduction in the commitments to $4 million.

Each had the opportunity to further reduce their commitments, but elected to maintain their participation in the issue.

Additionally, the company’s chairman has committed to sub-underwrite up to $500,000.

The suspension of trading in Blackham securities will be lifted today and trading of the new shares is expected to begin on Tuesday, 20 February 2018.

READ: Blackham Resources accesses high grade ore at gold operation

Blackham is entering a lower risk period of production at Matilda-Wiluna in Western Australia.

It will initially focus on free milling gold production with an expected stripping ratio of 7:1, which is less than half of recent levels.

This is expected to provide a step change in project economics.

In conjunction with continued access to high grade ore zones supported by extensive grade control drilling, this will provide ongoing mill supply and continued growth in high grade stockpiles.

Due to available carried forward tax losses, Blackham does not expect to pay income tax during the current free milling plan.

Exploration drilling to increase

This cash flow will ensure there is an increased level of exploration drilling going forward, focused on identifying additional free milling mineralisation.

Blackham also aims to increase the 1.2 million ounce gold reserve by converting more of the large resource base of 65 million tonnes at 3.1 g/t gold for 6.5 million ounces.

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Tue, 23 Jan 2018 09:24:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190419/blackham-resources-raising-36-million-to-support-gold-growth-strategy-190419.html
<![CDATA[News - Blackham Resources implements initial stages of recapitalisation strategy ]]> https://www.proactiveinvestors.com.au/companies/news/189983/blackham-resources-implements-initial-stages-of-recapitalisation-strategy-189983.html Blackham Resources Ltd (ASX:BLK) has refinanced its term loan with Orion Fund JV Limited through a new $14.3 million arrangement with key mining contractor MACA Limited (ASX:MLD).

As part of a standstill agreement, the 31 December 2017 maturity repayment date of the non-amortising term loan was deferred to 15 January 2018.

This enabled Blackham to negotiate a secured loan facility with MACA and the maturity repayment date has been met.

No repayment obligations until March 2019

There are no principal repayment obligations under the MACA Loan until March 2019 and the initial interest rate is 10% per annum.

Blackham has the Matilda-Wiluna Gold Operation in Western Australia.

The refinancing and term loan repayment form part of the company’s recapitalisation strategy.

Aim to repay project financing facility in 2018

Blackham has a separate fully drawn project financing facility of $23 million that remains in place with Orion.

This will reduce to $20.5 million following completion of Blackham’s proposed $35.9 million entitlements issue.

The company intends to fully repay this facility in 2018.

Entitlements issue aims to raise $35.9 million

Blackham expects to launch the entitlements issue next week after completing a prospectus and arranging underwriting.

It will be on the basis of five new shares for every two shares held at an issue price of $0.04 per new share together with one free attaching listed option for every two new shares issued.

The company has appointed Hartleys Limited as lead manager and to act as underwriter with an agreement expected to be signed this week.

Tectonic Advisory Partners, acting through Ecoban Securities Corporation, will act as North American placement agent.

MACA, Orion and Pybar Mining Services have provided sub-underwriting commitments in respect of the proposed issue of up to $8 million, $2.5 million and $2.5 million respectively.

Additionally, chairman Milan Jerkovic has committed to sub-underwrite up to $500,000 of the entitlements issue.

READ: Blackham Resources accesses high grade ore at gold operation

Milan Jerkovic said: “Refinancing of the Orion term loan, together with the alignment of key stakeholders, marks a milestone which allows the company to move forward with the final stage of our recapitalisation strategy.

“This will ensure that Blackham is well funded with a strong balance sheet to enable it to focus initially on a simple free milling mine plan at its Matilda-Wiluna Gold Operation.

“It comes as the operation transitions to a period of stable gold production, having recently accessed high grade ore zones, delivered record gold production and achieved a step-change in project economics.

“The company plans to repay the remainder of its Orion facilities and normalise working capital using internally generated cash flows by the end of 2018.

“We are targeting a net-cash position by the end of the calendar year, whilst continuing exploration aimed at lengthening and improving the free-milling mine plan.”

Company appoints finance specialist as director

Finance specialist Greg Fitzgerald has agreed to join the Board following the entitlements issue.

He is a chartered accountant with more than 30 years of gold mining and resources related experience.

Fitzgerald has extensive executive experience in managing finance and administrative matters for listed companies, including Resolute Mining Limited (ASX:RSG).

Technical advisory committee is formed

Linton Kirk and Jonathan Lea will also join a new technical advisory committee and will work with the executive team to further de-risk and optimise the operations as well as growth opportunities.

Kirk has more than 35 years’ experience in mining, covering open pit and underground operations in several commodities.

Lea is a geologist of more than 30 years’ standing who has spent more than 20 years of his career in gold mining.

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Mon, 15 Jan 2018 11:29:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189983/blackham-resources-implements-initial-stages-of-recapitalisation-strategy-189983.html
<![CDATA[News - Blackham Resources accesses high grade ore at gold operation ]]> https://www.proactiveinvestors.com.au/companies/news/189557/blackham-resources-accesses-high-grade-ore-at-gold-operation-189557.html Blackham Resources Ltd (ASX:BLK) is accessing high grade ore at the Matilda-Wiluna Gold Operation in Western Australia.

Ore at 1.6 g/t gold has been mined from the M4 and Galaxy pits since November 2017 and this is expected to continue for the next six months.

As a result the company achieved record weekly gold production of 1,685 ounces in the last week of December.

Production ramps up

Production for the month was 8,038 ounces, which was marginally less than production for the entire September 2017 quarter.

Blackham milled a record 443,000 tonnes during the December quarter and plant recovery increased to 92.3%, up from 91.5% in the previous quarter.

There was also a reduction in waste material mined which has reduced open pit mining costs.

The strip ratio for the remaining oxide reserves is expected to reduce to 7:1 from 16.5:1 in the next six months.

High grade stockpiles

Blackham has started building high grade stockpiles with 51,000 tonnes at 1.6 g/t accumulated as at 31 December.

Milan Jerkovic, chairman, said: “The recent mining and production levels support our belief that the delays in accessing high grade open pit ore are now behind us.

“The recently announced recapitalisation strategy is progressing very well with the support of Blackham’s secured lender (Orion) and key mining contractor (MACA).”

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Fri, 05 Jan 2018 10:57:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189557/blackham-resources-accesses-high-grade-ore-at-gold-operation-189557.html
<![CDATA[News - Blackham Resources granted extension to term loan ]]> https://www.proactiveinvestors.com.au/companies/news/189362/blackham-resources-granted-extension-to-term-loan-189362.html Blackham Resources Ltd (ASX:BLK) has been granted an extension to the maturity date of a term loan while it attempts to refinance the loan.

Lender Orion Fund JV Limited has agreed to defer the repayment date of the non-amortising term loan to 15 January 2018 from 31 December 2017 as part of a standstill agreement.

Discussions to refinance the loan are well progressed with settlement expected to occur by 15 January 2018.

The standstill agreement has been entered into by Blackham, Orion, key mining contractor MACA Limited and offtaker Osisko Bermuda Limited.

It covers the company’s Matilda-Wiluna Gold Project in Western Australia.

Recapitalisation strategy

The agreement and refinancing form part of a broader recapitalisation strategy that Blackham is implementing.

After refinancing the loan, Blackham intends to undertake an entitlements issue to raise circa $36 million.

The recapitalisation strategy is underpinned by the intended support for the Matilda-Wiluna operations from Orion, MACA and Pybar Mining Services.

Milan Jerkovic to become executive chairman

As part of the strategy, non-executive chairman Milan Jerkovic will become executive chairman, taking a leading role in the operations and management of Blackham.

Milan Jerkovic said: “Whilst 2017 has been a tough year for Blackham, the 2018 operational outlook for our Matilda Wiluna Gold Project is very strong.

“The recapitalisation will ensure that Blackham is fully financed with a strong balance sheet to enable it to close out its finance facility with Orion in 2018 and to execute its forward plans.

“These include significant ongoing exploration drilling targeted at both new deposits and at increasing gold reserves.”

The company will remain in voluntary suspension until the earlier of 15 January 2018 or the announcement of completion of the refinancing and recapitalisation plan.

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Tue, 02 Jan 2018 12:32:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189362/blackham-resources-granted-extension-to-term-loan-189362.html
<![CDATA[News - Blackham Resources enters trading halt pending update on funding arrangements ]]> https://www.proactiveinvestors.com.au/companies/news/188767/blackham-resources-enters-trading-halt-pending-update-on-funding-arrangements-188767.html Blackham Resources Ltd’s (ASX:BLK) shares have been granted a trading halt by the ASX, pending details regarding an update on its funding arrangements.

The halt will remain in place until the opening of trade on Monday 18 December 2017, or earlier if an announcement is made to the market.

Blackham is working with Pacific Road Capital to finalise the formal legal documentation surrounding the recently outlined $60 million funding package.

Earlier this week, the Western Australian gold producer extended the closing date of its renounceable pro-rata entitlement offer to shareholders to Friday, 22 December 2017.

READ: Blackham Resources extends closing date of rights issue

This is in response to a number of shareholders advising that there had been a delay in them receiving their prospectus and entitlement and acceptance form.

Blackham started production from its Wiluna-Matilda Gold Operation in October 2016.

READ: Blackham Resources assays bode well for a gold resource upgrade

The Wiluna-Matilda Gold Operation includes a resource of 65 million tonnes at 3.1 g/t gold for 6.5 million gold ounces.

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Thu, 14 Dec 2017 14:08:00 +1100 https://www.proactiveinvestors.com.au/companies/news/188767/blackham-resources-enters-trading-halt-pending-update-on-funding-arrangements-188767.html
<![CDATA[News - Blackham Resources extends closing date of rights issue ]]> https://www.proactiveinvestors.com.au/companies/news/188684/blackham-resources-extends-closing-date-of-rights-issue-188684.html Blackham Resources Ltd (ASX:BLK), a Western Australian gold producer, has extended the closing date of its renounceable pro-rata entitlement offer to shareholders to Friday, 22 December 2017.

This is in response to a number of shareholders advising that there had been a delay in them receiving their prospectus and entitlement and acceptance form.

The company continues to work with Pacific Road Capital towards the finalisation of the formal legal documentation surrounding the recently outlined $60 million funding package.

READ: Blackham Resources assays bode well for a gold resource upgrade

The company's Wiluna-Matilda Gold Operation includes resources of 65 million tonnes at 3.1 g/t gold for 6.5 million gold ounces.

The reserve definition drilling program at Bulletin has been completed as part of the expansion study and will provide the basis for a reserve update for the Bulletin underground mine.

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Wed, 13 Dec 2017 09:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/188684/blackham-resources-extends-closing-date-of-rights-issue-188684.html
<![CDATA[News - Blackham Resources assays bode well for a gold resource upgrade ]]> https://www.proactiveinvestors.com.au/companies/news/187804/blackham-resources-assays-bode-well-for-a-gold-resource-upgrade-187804.html Blackham Resources Ltd (ASX:BLK) has intercepted high-grade gold mineralisation at the Bulletin Lode within the Matilda-Wiluna Gold Operation in Western Australia.

The Wiluna-Matilda Gold Operation includes resources of 65 million tonnes at 3.1 g/t gold for 6.5 million gold ounces.

The reserve definition drilling program at Bulletin has been completed as part of the Expansion Study and will provide the basis for a reserve update for the Bulletin underground mine.

READ: Blackham Resources takes major step towards re-financing the Matilda-Wiluna Operation

Drilling has tested areas currently classified as Inferred which are likely to be accessible within three years of the re-commencement of underground mining at Bulletin.

Intercepts from the latest drilling include 16.6 metres at 6.03 g/t gold and 8.0 metres at 11.1 g/t gold.

Results support Bulletin underground mine plane

These ore-grade results suggest that Inferred resource areas are likely to be upgraded to Indicated status.

This adds further confidence to the Bulletin underground mine plan as outlined in the Expansion Study pre-feasibility study (PFS).

The confirmation of sub-parallel lodes is significant as they will increase the ounces per vertical metre and hence reduce mining costs.

Considering the proximity of the Bulletin deposit to existing underground infrastructure, the definition of additional resources are likely to benefit the economics of the deposit significantly during the mining stage.

High-grade mineralisation intersected in several sub-parallel lodes

Infill drilling has intersected high-grade mineralisation in several sub-parallel lodes at Bulletin with results generally confirming previous assay results.

Highlights include:

- 16.6 metres at 6.03 g/t gold;
- 8.0 metres at 11.1 g/t gold;
- 15.0 metres at 5.32 g/t gold;
- 11.3 metres at 6.63 g/t gold;
- 11.0 metres at 3.10 g/t gold;
- 13.8 metres at 4.91 g/t gold;
- 8.5 metres at 8.33 g/t gold; and
- 9.0 metres at 5.66 g/t gold.

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Mon, 27 Nov 2017 17:59:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187804/blackham-resources-assays-bode-well-for-a-gold-resource-upgrade-187804.html
<![CDATA[News - Blackham Resources takes major step towards re-financing the Matilda-Wiluna Operation ]]> https://www.proactiveinvestors.com.au/companies/news/187789/blackham-resources-takes-major-step-towards-re-financing-the-matilda-wiluna-operation-187789.html Blackham Resources Ltd (ASX:BLK) is on the road to completing the re-financing of the Matilda-Wiluna Operation with an agreed initial $60 million funding package with Pacific Road Capital.

Blackham welcomed Pacific Road as a new cornerstone shareholder and substantial financial contributor to the 6.5 million ounce Matilda-Wiluna Gold Operation in Western Australia.

Pacific Road is a dedicated mining private equity specialist, managing two funds with over US$800 million of total committed capital.

Details of the package

- $7.35 million private placement at $0.12 per share;
- $2.65 million sub-underwriting of a planned $12.3 million entitlement offer;
- $50 million loan facilities; and
- Potential for further debt funding of the Wiluna Plant Expansion to lift capacity to 3.3 million tonnes per annum.

The funding agreement is at an executed term sheet stage, with formal legal documentation well advanced and expected to execute within one week.

This follows an extensive technical due diligence process by Pacific Road.

Renounceable entitlement offer

Blackham will offer shareholders an opportunity to participate at the same share price as Pacific Road through a renounceable entitlement offer, of two shares per seven shares held, to potentially raise a further $12.3 million.

The Matilda-Wiluna Operation

The Wiluna-Matilda Gold Operation is located in Australia’s largest gold belt which stretches from Norseman through Kalgoorlie to Wiluna.

The operation now includes resources of 65 million tonnes at 3.1g/t gold for 6.5 million gold ounces.

These are all within 20 kilometres of Blackham’s wholly-owned 1.8 million tonne per annum plant, gas power station, borefields and accommodation village.

Blackham has consolidated almost the entire Wiluna Goldfield within a +1,100 square kilometre tenement package which has historically produced more than 4.3 million gold ounces.

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Mon, 27 Nov 2017 11:16:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187789/blackham-resources-takes-major-step-towards-re-financing-the-matilda-wiluna-operation-187789.html
<![CDATA[News - Blackham to provide funding update for Matilda/Wiluna Gold Operation ]]> https://www.proactiveinvestors.com.au/companies/news/186757/blackham-to-provide-funding-update-for-matildawiluna-gold-operation-186757.html Blackham Resource Ltd (ASX:BLK) is producing gold from the Matilda/Wiluna Gold Operation, located in Australia’s largest gold belt which stretches from Norseman through Kalgoorlie to Wiluna.

The gold operation hosts 6.5 million gold ounces.

READ NOW: Blackham Resources to be cash flow positive in the December 2017 quarter

Blackham has this morning been granted a trading halt by the ASX, pending details regarding its funding arrangements.

The halt will remain in place until the opening of trade on Wednesday 8th November 2017, or earlier if an announcement is made to the market.

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Mon, 06 Nov 2017 10:28:00 +1100 https://www.proactiveinvestors.com.au/companies/news/186757/blackham-to-provide-funding-update-for-matildawiluna-gold-operation-186757.html
<![CDATA[News - Blackham Resources to be cash flow positive in the December 2017 quarter ]]> https://www.proactiveinvestors.com.au/companies/news/186614/blackham-resources-to-be-cash-flow-positive-in-the-december-2017-quarter-186614.html Blackham Resources Ltd (ASX:BLK) is moving towards a key financial metric with the company expecting to be cash flow positive in the December 2017 quarter due to access to higher grade ore to be mined from the open pits at the Matilda/Wiluna Gold Operation.

The gold operations are located in Australia’s largest gold belt which stretches from Norseman through Kalgoorlie to Wiluna.

Blackham boasts resources of 65 million tonnes at 3.1g/t gold for 6.5 million gold ounces, which are all within 20 kilometres of the central processing facility, providing strong economies of scale.

The company has consolidated almost the entire Wiluna Goldfield within a +1,100 square kilometre tenement package which has historically produced in excess of 4.3 million gold ounces.

Latest funding details

Blackham has received strong interest in refinancing of its current debt position.

Blackham is now in a position to confirm it has a credit approved term sheet to fully re-finance the $36.7 million current secured debt position.

The term sheet has the first repayment in June 2020 which means the company’s working capital position would be improved by the $14.8 million currently repayable by the 31st December 2017 under the existing financing facility.

Technical due diligence has now been completed and the legal documentation is currently well advanced.

The term sheet remains subject to legal due diligence which is also well advanced.

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Thu, 02 Nov 2017 11:26:00 +1100 https://www.proactiveinvestors.com.au/companies/news/186614/blackham-resources-to-be-cash-flow-positive-in-the-december-2017-quarter-186614.html
<![CDATA[News - Blackham Resources continues to grow Wiluna open pits ]]> https://www.proactiveinvestors.com.au/companies/news/185472/blackham-resources-continues-to-grow-wiluna-open-pits-185472.html Blackham Resources (ASX:BLK) has completed yet another resource upgrade at its Wiluna open pits located within the Wiluna Gold Operation located in Western Australia.

The revised JORC resource estimate for the Wiluna North open pits encompassed the Happy Jack, Bulletin, Squib, Essex, Golden Age North and Starlight ore bodies.

This has more than doubled the Wiluna North open pit resource to 7.3 million tonnes at 2.69 g/t gold for 630,000 ounces gold, of which 81% is in the Indicated category.

The Wiluna open pit resources now total 17 million tonnes at 2.8 g/t gold for 1.5 million ounces gold, which have been delineated at an economical cost of $7 per resource ounce.

Exploration of the Wiluna open pit resources suggests a likely open pit operation stretching over 3.5 kilometres in length.

Bryan Dixon, managing director, commented

“Since drilling commenced in September last year a total of ~$10.5 million has been spent on Resource and Reserve definition drilling on the Wiluna open pits.

“In this time, the Mineral Resource has grown from 80,000 ounces to 1,505,000 ounces in just one year, of which 76% is classified as Indicated.

“This represents a very attractive resource addition cost of $7 per ounce.

“This large open pit resource and reserves underpin the growth opportunity as seen in the expansion pre-feasibility study released late in August.

“We also expect a significant reserve upgrade to flow from the latest resource upgrade.”

Resource upgrade details

The latest JORC resource estimate for the Wiluna North lodes is based on an additional ~23,000 metres of reverse circulation and diamond drilling completed between March and May 2017.

Drilling was successful in proving the continuity of mineralisation.

Mining studies which will allow an updated open pit Ore Reserve estimate for Wiluna North are underway.

Background

Over the last six years, Blackham has consolidated the Wiluna Goldfield with a tenement package covering over 1,100 square kilometres into one operation.

The Matilda-Wiluna Gold Operation comprises 6.5 million ounces of gold resources grading 3.1 g/t all within a 20 kilometre radius of the Wiluna Gold Plant.

Operations recommenced gold production in October 2016.

Blackham has focused its exploration strategy around ensuring it has a long open pit mine life to provide certainty with feeding an expanded 3.3 million tonnes per annum processing facility.

The expansion pre-feasibility study released late in August supported the operation’s growth to 207,000 ounces per year of gold production.

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Thu, 12 Oct 2017 16:09:00 +1100 https://www.proactiveinvestors.com.au/companies/news/185472/blackham-resources-continues-to-grow-wiluna-open-pits-185472.html
<![CDATA[News - Blackham Resources to benefit from nearby drilling success ]]> https://www.proactiveinvestors.com.au/companies/news/184414/blackham-resources-to-benefit-from-nearby-drilling-success-184414.html Blackham Resources (ASX:BLK) is positioned to benefit from the development of the nearby Golden Monarch gold deposit near to its Wiluna gold processing plant in Western Australia.

Recent assay results received from Golden Monarch by the deposit’s owner, GWR Group (ASX:GWR) build the case for the deposit to be developed as a near-term production opportunity.

In January 2017 GWR executed a memorandum of understanding (MoU) with Blackham for the potential treatment of gold deposits through Blackham’s Wiluna plant.

Under the MoU, GWR will be responsible for drilling the gold deposits out to JORC 2012 level and for initial sighter metallurgical testwork associated with the deposits. 

Discussions are ongoing to formalise treatment options as per MoU. 

A resource model update and pit optimisation studies are both currently being undertaken by GWR Group.

Background

Over the last six years, Blackham has consolidated the Wiluna Goldfield with a tenement package covering over 1,100 square kilometres into one operation.

The Matilda-Wiluna Gold Operation comprises 6.2 million ounces of gold resources grading 3.1 g/t all within a 20 kilometre radius of the Wiluna Gold Plant.

Operations recommenced gold production in October 2016.

Blackham has focused its exploration strategy around ensuring it has a long open pit mine life to provide certainty with feeding an expanded 3.3 million tonnes per annum processing facility.

Recent expansion study and funding

Blackham recently revealed the results of its expansion preliminary feasibility study which supported the operation’s growth to 207,000 ounces per year of gold production.

The study demonstrated robust economics and improved economies of scale supporting the expansion.

Furthermore, most recently Blackham secured up to $72 million in funding to continue to advance expansion studies and manage its balance sheet.

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Fri, 22 Sep 2017 15:38:00 +1000 https://www.proactiveinvestors.com.au/companies/news/184414/blackham-resources-to-benefit-from-nearby-drilling-success-184414.html
<![CDATA[Media files - Blackham Resources gets funding boost to advance expansion feasibility study ]]> https://www.proactiveinvestors.com.au/companies/stocktube/8013/blackham-resources-gets-funding-boost-to-advance-expansion-feasibility-study-8013.html Thu, 31 Aug 2017 19:05:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/8013/blackham-resources-gets-funding-boost-to-advance-expansion-feasibility-study-8013.html <![CDATA[News - Blackham Resources' funding provides flexibility for growing gold production ]]> https://www.proactiveinvestors.com.au/companies/news/183206/blackham-resources-funding-provides-flexibility-for-growing-gold-production-183206.html Blackham Resources Ltd (ASX:BLK) recently revealed that it has an eye on building its wholly-owned Matilda/Wiluna Operation’s into producing +200,000 gold ounces per annum.

This was supported by results from an Expansion Preliminary Feasibility Study (PFS) demonstrating robust economics and improved economies of scale supporting the expansion.

READ NOW: Blackham has potential to join 200,000 gold ounce production club

Blackham has now secured up to $72 million in funds to continue to advance its Expansion Definitive Feasibility Study and manage its balance sheet whilst it continues to demonstrate improving operational cash flows from the operation.

The funding arrangement is underpinned by the ability to draw the funds from The Australian Special Opportunity Fund, a New York-based institutional investor, managed by The Lind Partners.

Bryan Dixon, managing director for Blackham, commented:

"As Blackham demonstrates strengthening production from its gold operations and pushes forward with the Expansion DFS, the Lind Facility gives the company maximum flexibility in choosing the best future funding solution for shareholders to grow the Matilda-Wiluna Gold Operation into a 200,000ozpa long mine life asset."

Jeff Easton, managing director for The Lind, added:

"We are excited to return at this crucial point to fund Blackham and back management as they demonstrate the next chapter of their significant growth story."

WATCH NOW: Blackham Resources gets funding boost to advance expansion feasibility study Analysis

The funding provides Blackham with flexibility and time to choose the optimal funding solution going forward.

Under the agreement with Lind, Blackham will receive $1.2 million on execution as a prepayment for fully paid ordinary shares in Blackham.

Blackham has the ability to vary further monthly share subscriptions with Lind between nil and $3 million over the next two years.

The Expansion DFS is expected to be completed by the end of the March quarter 2018.

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Thu, 31 Aug 2017 13:17:00 +1000 https://www.proactiveinvestors.com.au/companies/news/183206/blackham-resources-funding-provides-flexibility-for-growing-gold-production-183206.html
<![CDATA[News - Blackham Resources has potential to join 200,000 gold ounce per annum production club ]]> https://www.proactiveinvestors.com.au/companies/news/183127/blackham-resources-has-potential-to-join-200000-gold-ounce-per-annum-production-club-183127.html 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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Wed, 30 Aug 2017 11:01:00 +1000 https://www.proactiveinvestors.com.au/companies/news/183127/blackham-resources-has-potential-to-join-200000-gold-ounce-per-annum-production-club-183127.html
<![CDATA[News - Blackham Resources to update on Wiluna gold project ]]> https://www.proactiveinvestors.com.au/companies/news/175491/blackham-resources-to-update-on-wiluna-gold-project-175491.html Blackham Resources (ASX:BLK) has been granted a trading halt by the ASX, pending an update on the Wiluna gold project.

Earlier in the year the resources at the Matilda / Wiluna Operation grew to 6.4 million ounces, with 3.1 million ounces in the Measured and Indicated categories.

The halt will remain in place until the opening of trade on Thursday 30th March 2017, or earlier if an announcement is made to the market.

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Tue, 28 Mar 2017 13:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/175491/blackham-resources-to-update-on-wiluna-gold-project-175491.html