Proactive Investors - Run By Investors For Investors

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

Increased production and lower costs at Matilda-Wiluna will generate robust cash flow.
Bar chart of production progress between 2016 and 2017
Management is flagging 2018 as a transformational year as high-grade ore is mined

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.

View full BLK profile View Profile

Blackham Resources Ltd Timeline

Related Articles

Base Resources
Fri
"The Kwale mine is now built and operating smoothly and is supported by a healthier minerals sands pricing environment," Berenberg said.
The Toral project
October 31 2018
Since June, the company has achieved an increase in the Toral project's inferred resource estimate, completion of the Phase 1 RC drilling programme and commencement of a Phase 2 diamond infill drill programme, a successful re-logging exercise of historic core to provide valuable additional data and sustained progress on the preparation of the initial scoping study
Community meeting at Lindi Jumbo project
November 30 2018
The company’s highest priority is securing funding for the world-class Lindi Jumbo large and jumbo flake graphite project.

© Proactive Investors 2018

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

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