Perth, Oct 27, 2017 AEST (ABN Newswire) - The Board of Blackham Resources Limited (ASX:BLK) (OTCMKTS:BKHRF) ('Blackham' or 'the Company') provides the following update on its activities for the quarter ended 30 September 2017 and thereafter.

KEY POINTS:

Matilda/Wiluna Gold Operation

- Quarterly gold production totalled 15,619oz (Jun'17 Qtr 15,720oz)

- Open pit cash inflows delayed due to:

o M4 high grade ore access delayed due to geotechnical instability

o Higher investment in waste movement in Sep'17 Qtr will result in lower stripping ratios and mining costs for balance of FY18

o Open pits expected to be cash flow positive in Dec'17 quarter with more high grade ore to be mined

- Underground mine cash flow positive

o Record underground mined ore of 6,302oz (42,300t @ 4.7g/t)

o Underground long-hole stopping ceased in mid Oct'17

o Air leg mining continues to maintain lower risk mining method

Resources & Reserves

- Resources increased to 65Mt @ 3.1g/t Au for 6.5moz

o An increase of 27% in one year at a cost of A$7/oz

o Adelaide Moonlight Resources currently being revised

- Reserves increased to 15Mt @ 2.5g/t Au for 1.2moz

o An increase of 115% in one year

o Wiluna north pits Ore Reserves to be updated after 103% increase to Wiluna North Resource

PFS Expansion Study

- Expansion Preliminary Feasibility Study (Expansion PFS) confirms robust economics for +200kozpa long mine life operation

o LOM All in sustaining costs A$1,058/oz

o IRR 123% and NPV8% 360M before tax @ A$1,600/oz gold price

- Expansion Definitive Feasibility Study (Expansion DFS) well advanced

Corporate

- $10m in cash and bullion at the end of the quarter

- Gold sold during the quarter: 15,850oz @ A$1,601/oz

- Hedge contracts in place at 30 September: 28,569oz @ A$1,651/oz

- Re-financing process well advanced

- Lind Partners back-up equity facility in place

To view the full report, please visit:
http://abnnewswire.net/lnk/N2B4M45H


About Blackham Resources Ltd

Blackham Resources ASX:BLKBlackham 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.

   


Contact

Blackham Resources Ltd
T: +61-8-9322-6418
F: +61-8-9322-6398
E: info@blackhamresources.com.au
WWW: www.blackhamresources.com.au



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