Due to recent exploration success, Blackham has indicated that they are considering increasing the throughput capacity at their Matilda Project. We believe this could see production increase to between 180,000 to 220,000oz Au pa.
Analyst Comment: Despite a highly successful past 12 months that has seen in a significant re-rating in their market capitalisation, there is no slow down in sight for Blackham, as they have flagged a potential expansion of their processing facilities, that could see production increase to between 180,000 to 220,000oz Au pa.
The expansion of the processing facility is a result of a successful exploration campaign over the past year that has seen the mine life double in size (873koz Au). Exploration remains a key focus for the year ahead, as three drill rigs will remain on site for the foreseeable future. Key exploration targets include the strike extensions at the Matilda open pits, the upper sections of the Golden Age deposit as well as around the Wiluna mine area.
Valuation: We have increased our short term valuation for Blackham to $1.13 / share (previous $0.99 / share). The increase was due to changes in our mine life (1.01Moz Au), operating costs (C1 - $833/oz, AISC - $1,166 / oz) and our gold price (A$1,750 / oz) assumptions.
We also note our valuation increases $1.78 / share in our increased throughput scenario. Further information regarding the key assumptions in this scenario can be found in our investment analysis video.
To view the video, please visit:
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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