Matilda Feasibility Confirms 2016 Production
- Definitive Feasibility Study ("DFS") demonstrates very strong economics for the Matilda Gold Project.
- Rapid low capital pathway to gold producer within 6 months
- Ore Reserve Estimate of 481,000oz (PFS 270,000oz) demonstrates very high conversion of Mineral Inventory into Reserves
- DFS adds two years of mine life enabling sustainable ongoing production
- Project implementation underway
The Company is very pleased to have confirmed the Project's robust economics including a low capital requirement, short timeframe to production, fast payback and operating costs that are in line with its Western Australian peers. The very low capex required for the project is due to the substantial plant and infrastructure at site and the minor plant refurbishments required to re-start the project.
During the DFS process, an additional two and half years has been added to the mine life from the PFS which results in a significant improvement in the Project's economics.
The DFS confirmed strong conversion of Inferred Resources into Indicated Resources and PFS Mineral Inventory into Reserves. Since finalising the DFS Resources, Blackham has continued drilling at Matilda, Golden Age and Bulletin with the aim of improving the quality and quantity of the reserve ounces. Further reserve re-estimates are expected prior to production.
Blackham is pleased to report the results of the DFS show improved economics to the PFS (refer ASX announcement 20 October 2015) plus the addition of a longer mine life and a superior confidence level, improving from +/- 25% to +/- 15%. The results of the DFS confirm the mining and processing parameters are not dissimilar to the results of the PFS.
Following the completion of the DFS, Blackham's Board have committed to the Matilda implementation plan and development timeline. The 4.7Moz Matilda Gold Project is targeting production by Q3 2016.
Blackham has a very experienced team in gold exploration, development and operations. The existing plant and infrastructure and the processing of soft Matilda oxides from open pits at the beginning of the mine schedule equates to a low risk start up strategy.
The Company signed a $38.5 Million Funding Facility with Orion Mine Finance on 29 May 2015 ("Orion Funding Facility") with $13 million drawn during 2015. Subject to successful review of the DFS, which is currently being fast tracked, and the granting of the remaining submitted approvals, a further $23 million will be available under the Orion Funding Facility for the development of the Matilda Gold Project.
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About Blackham Resources Ltd
Blackham Resources Limited (ASX:BLK) (OTCMKTS:BKHRF), is an emerging gold producer focused on its Matilda Gold Project in Western Australia where mining and production is imminent. The Matilda/Wiluna Gold Operation incorporates over 1,000 square kilometres of tenements containing total JORC 2012 resources of 63Mt @ 3.2 g/t for 6.4Moz of gold. These tenements cover around 55 kilometres of strike along the Wiluna Mine Sequence and 10 kilometres of strike along the Coles Find Sequence. The Wiluna Mine and Coles Find Sequence has historically produced 4 million ounces of gold.
All the deposits are within 26 kilometres by existing haul roads of Blackhams recently acquired Gold Plant. With exploration prospects at Mt Poole, Monarch, Carroll Prior, Red Lady, Zenith, Island and Albion in the Lakeway area provides the company with excellent exploration areas for potential future projects.
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Blackham Resources Ltd