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 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

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



Link: Quarterly Activities & Cashflow Report Sep 2017


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