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.
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.