Golden Age is currently the company’s highest-grade producing orebody, and Blackham continues to test extensions to sustain or increase this production over the next 12-18 months.
Assays have been received for the first 10 holes of the phase I Golden Age program which comprised 17 holes for 971 metres.
Results feature 5.4 metres at 9.47 g/t gold and 1.3 metres at 26.4 g/t gold.
Drilling has successfully delineated further high-grade footwall mineralisation below the existing Golden Age 1148 development.
Further underground drilling is planned to infill and extend the footwall structure, and to test targets with the potential to increase production from the underground mine.
Substantial infill drilling will commence in the coming weeks targeting the 600 to 800RL levels of the mine.
Expansion targeting 100-120,000 ounces per year
Blackham has guided to FY20 gold production guidance of 70,000-80,000 ounces at an all-in sustaining cost (AISC) of A$1,550-$1,750 per ounce.
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.
The Stage 1 Expansion Study indicates a production profile averaging 110,000 ounces from FY22 to FY27.