Blackham Resources Limited (ASX:BLK) ("Blackham" or "the Company") is pleased to present an operational update for the March 2018 quarter at its 6.5Moz Matilda-Wiluna Gold Operation ("the Operation"). Access to high grade zones in the M4 and Galaxy pits was achieved late in the Dec'17 quarter, enabling record gold production for the March quarter of 20,631oz (Dec'17 Qtr: 14,923oz) with a record month of production in Mar'18 of 7,419oz.


- Operations continued to generate strong cash flows in March

- New record monthly gold production in Mar'18 of 7,419oz (Feb'18: 6,713oz), an 11% increase on last month

o 165kt milled for the month (Feb'18: 150kt)

o Mill feed grade improved to 1.6g/t (Feb'18: 1.5g/t)

- New record quarterly gold production of 20,631oz (Dec'17 Qtr: 14,922oz), a 38% increase on last quarter

o 477kt milled for the quarter (Dec'17 Qtr: 443kt)

o Mill feed grade improved to 1.5g/t (Dec'17 Qtr: 1.1g/t)

- All in sustaining costs ("AISC") reduced to A$1,092/oz for quarter (Dec'17 Qtr: A$1,882/oz), representing a 42% decrease on last quarter

- Average realised gold price of A$1,669/oz for the quarter

- Current gold forward sales contracts - 27,400oz @ A$1,724/oz over the next 9 months

- Cash and bullion of $29.2 million and secured debt of $40.0 million at 31 Mar'18

- Production guidance reconfirmed at 40-45koz @ A$1,100-1,200/oz AISC for this half

The March quarterly open pit mining stripping ratio was a low 2.5:1 (waste:ore) (Dec'17 Qtr: 10.2:1). The low stripping ratio and increased gold production resulted in Blackham achieving a record low AISC of A$1,092/oz for the quarter (Dec'17 Qtr: A$1,882/oz) with an average realised gold price during the quarter of A$1,669/oz. The Operation's high grade stockpiles total 127kt @ 1.5g/t Au, being lower than forecast in Jan'18 due to lower mining material movements.

The March quarter's production increased 38% from the previous quarter, primarily from gaining access to higher grade zones in the M4 and Galaxy pits which was achieved late in the Dec'17 quarter. During the Sep'17 and Dec'17 quarters 248,000t and 206,000t of low grade stockpiles where processed respectively at an average grade of 0.7g/t, significantly reducing mill feed grade for those quarters (see above Chart). During the March quarter throughput increased 8% on the prior quarter. Plant recoveries decreased slightly as deeper ore from the M4 pit was processed.

Blackham's Executive Chairman, Mr Milan Jerkovic, said:

"The March operational results demonstrate a continuation of the step change in project economics that commenced in December 2017. Record production and significantly reduced costs underpinned a quarter of strong operational cashflows, whilst building stockpiles. We remain confident that 2018 will be a transformational year that will generate significant operating cash flows and value for Blackham and its shareholders."

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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.



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

John Gardner
Media Relations
Citadel Magnus
T: +61-8-6160-4900

Link: Record Quarter of Gold Production for Blackham

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