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Blackham Resources opens SPP tomorrow as expansion work continues

The company has reminded shareholders that its share purchase plan (SPP) will open tomorrow to eligible holders.

Blackham Resources Ltd - Blackham Resources opens SPP tomorrow as expansion work continues
Shareholders may apply for up to $30,000 worth of shares priced at 1-cent each

Blackham Resources Ltd (ASX:BLK) will open its share purchase plan (SPP) tomorrow for eligible shareholders.

The company is seeking to raise up to $3 million which will be used for key mine development work programs that will underpin Blackham’s FY20 production.

Work programs include preproduction activities at the Williamson open pit, new tailings storage facility and rod mill refurbishment.

The SPP closes on 4 October 2019 with shares expected to be issued on 8 October 2019.

Blackham is focused on its flagship Matilda-Wiluna Gold Operations in Western Australia.

Blackham has guided to production of between 70,000 and 80,000 ounces of gold at an all-in sustaining cost of A$1,550-$1,750 per ounce in FY2020.

This represents annual production growth of 7-22% on FY19 which produced 65,406 ounces of gold at an AISC of A$1,760 per ounce.

Production in FY20 will be focussed on free milling ore bodies prior to Blackham transitioning to Stage 1 of its Sulphide Expansion Project, which is planned to commence production during FY21.

Production guidance for the current September 2019 quarter is 17,500-19,500 ounces at an AISC of A$1,550-$1,750 per ounce.

Ore from Williamson pit in November

Blackham plans to expand production at Matilda-Wiluna through two stages of expansion, stage I targeting 100,000-120,000 ounces of gold per annum and stage two increasing to 250,000 ounces per annum.

Stage I focuses on the production of a gold concentrate predominantly from the Wiluna underground with flexibility to also process its free milling and tailings Reserves.

Blackham continues to progress preparatory work for expansion, with underground mine planning and optimisation now well advanced.

This work together with the engineering design for the sulphide flotation plant is expected to be completed during September 2019.

Ore production from the Williamson open pit is expected in November 2019 with Williamson providing the baseload of free milling ore for the remainder of FY2020.

Quick facts: Blackham Resources Ltd

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ASX:BLK
Market: ASX
Market Cap: $52.89 m
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