Blackham Resources Ltd: Quarterly Activities Report September 2018
24.10.2018 | ABN Newswire
Perth, Australia - Blackham Resources Ltd. (ASX:BLK) (OTCMKTS:BKHRF) ('Blackham' or 'the Company') provides the following update on its activities for the quarter ended 30 September 2018 and thereafter:Highlights
Matilda-Wiluna Gold Operation
- Over the last three quarters gold production has been successfully stabilised at an average of 19,700oz per quarter
- Sep'18 quarterly gold production of 19,049oz (Jun'18 Qtr: 19,393oz)
- Record throughput in Sep'18 quarter of 556kt (Jun'18 Qtr: 535kt)
- Strong production in month of Sep'18 of 7,355oz and record weekly production of 2,127oz achieved in the final week of Sep'18
- All in Sustaining Costs per ounce ('AISC') for the Sep'18 quarter was A$1,588/oz (Jun'18 Qtr: $1,509/oz), in line with forecast as highlighted in our previous quarterly
- Investment in the additional mining material movements from 550KBCM per month in Jun'18 quarter, ramping up to 745kBCM in the month of Sep'18, resulted in higher overall costs this quarter which was required to match higher mill throughput
- Higher grade Wiluna ore is expected to increase production in the Dec'18 quarter
- Expecting Dec'18 quarter production of 20,000-23,000oz
- AISC/oz expected to decrease in Dec'18 quarter and over remainder of FY19
- FY19 production and cost guidance reconfirmed at 77-89koz @ an AISC of A$1,250-$1,450/oz
Reserve Development, Resources and Exploration
- Blackham delivers resources increase of 9% to 96Mt @ 2.2g/t for 6.7Moz (58% Indicated Resource)
- Golden Age underground mine plan was extended by a further 4 months to Apr'19 during the quarter, boosting high grade ore in the back half of FY19
- Additional Wiluna high grade free-milling mineralisation identified from drilling at East-West, Golden Age North and Happy Jack Pits that is likely to result in enhancements to the short-term mine plan
- Lake Way drilling confirms large mineralised gold system and further drilling planned this quarter
Corporate
- Cash and Bullion at 30 September was $8.9m (Jun'18: $23.9m)
- Net debt at 30 September was $11.0m (Jun'18: $8.4m)
- Lind Partners have agreed to invest up to A$23 million providing back up working capital
- Orion Fund JV Limited fully repaid in early Oct'18, strengthening the balance sheet
- Board strengthened further with the addition of Mr Geoff Jones as a Non-Executive Director
Non Core Assets
- A-Cap Resources Ltd. (ACB) agree to pay consideration of $5.8 million to Blackham and invest $5 million in the Wiluna Nickel-Cobalt Project to acquire up to 75% of the Wiluna Nickel-Cobalt Project
- Salt Lake Potash (SO4) announces a Scoping Study on development of a 50,000tpa sulphate of potash Demonstration Plant at Lake Way which supports a low capex, highly profitable operation
- SO4 gains mining approvals for initial Lake Way demonstration ponds
Blackham's Managing Director Bryan Dixon said "Our production performance in the Sep'18 quarter demonstrates further consistency in our operations. During the quarter, foundations were established for mining at our Wiluna free-milling open pits, creating the pathway to access higher grade ore at a lower cost-base moving forward."
To view the full report, please visit:
http://abnnewswire.net/lnk/I783U3W3
About Blackham Resources Ltd:
Blackham Resources Ltd. (ASX:BLK) (OTCMKTS:BKHRF) 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 96Mt @ 2.2g/t for 6.7Moz Au all within 20kms of the central processing facility. Blackham has consolidated the entire Wiluna Goldfield within a +1,100km2 tenement package which has historically produced in excess of 4.4 million ounces over a 120-year mining history.
Source:
Blackham Resources Ltd.
Contact:
Milan Jerkovic Executive Chairman T: +61-8-9322-6418 Bryan Dixon Managing Director T: +61-8-9322-6418 Jim Malone Investor Relations T: +61-419-537-714 Chantelle O'Sullivan Media Relations Citadel-MAGNUS T: +61-8-6160-4900