Blackham Resources Ltd (ASX:BLK) (OTCMKTS:BKHRF) ('Blackham' or 'the Company') provides the following update on its activities for the quarter ended 30 June 2018 and thereafter:

Highlights

Matilda-Wiluna Gold Operation

- Operations generate positive cash flows again in the June quarter

- Jun'18 gold production of 19,393oz (Mar'18 quarter: 20,631oz), in line with previous quarter, resulting in a record six months of gold production to Jun'18 of 40,024 oz (Dec'17 half: 30,541oz), a 31% increase on last half

- Record throughput of 535kt milled for the quarter (Mar'18 Qtr: 477kt), a 12% increase on last quarter

- Mill feed grade of 1.44g/t consistent with prior quarter (Mar'18 Qtr: 1.51g/t)

- Process recoveries reduced to 78.6% (Mar'18 Qtr: 89.4%) due to the main ore source being the transitional and fresh ore from the now completed M4 pit, a one-off isolated issue which was the primary constraint to achieving higher production in the quarter and half year, as well as increasing AISC/oz

- Process recoveries in the first three weeks of July are 91% due to the main ore feed source again being Matilda oxide ore

- All in sustaining costs per ounce ('AISC') for the quarter of A$1,509/oz (Mar'18 Qtr: A$1,092/oz)

- Stripping ratio for the quarter increased to 7.9 times (Mar'18 Qtr: 2.9 times) representing an investment in next quarter's production and a large contributor to the higher AISC in the Jun'18 quarter

- Average realised gold price of A$1,685/oz for the half, and A$1,696/oz for the Jun '18 quarter

Corporate

- Current gold forward sales contracts of 26,189oz @ A$1,742/oz over the next 8 months

- Net debt at 30 June 2018 reduced to $8.4m (31 March 2018: $10.4m)

- Board strengthened further with the addition of Mr Tony James as a Non-Executive Director

- Production guidance for FY19 is 77k-89koz @ an AISC of A$1,250-$1,450/oz

Reserve Development and Exploration

- High grade free milling mineralisation extended at Wiluna Mine

- Multiple high grade extensions identified at Golden Age

- Lake Way drill programme completed during the quarter and awaiting assay results

- Maiden resource published over Wiluna tailings - 620,000oz

- Positive scoping study completed on Wiluna tailings retreatment project ('Wiltails')

To view the full report, please visit:
http://abnnewswire.net/lnk/102C457Z


About Wiluna Mining Corporation Ltd

Wiluna Mining Corporation (ASX:WMC) (OTCMKTS:WMXCF) is a Perth based, ASX listed gold mining company that controls over 1,600 square kilometres of the Yilgarn Craton in the Northern Goldfields of WA. The Yilgarn Craton has a historic and current gold endowment of over 380 million ounces, making it one of most prolific gold regions in the world. The Company owns 100% of the Wiluna Gold Operation which has a defined resource of 8.04M oz at 1.67 g/t au. In May 2019, a new highly skilled management team took control of the Company with a clear plan to leverage the Wiluna Gold Operation's multi-million-ounce potential.

    

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



Link: Quarterly Activities & Cashflow Report June'18


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