Blackham Resources Ltd (ASX:BLK) (OTCMKTS:BKHRF) ('Blackham' or 'the Company') provides the following update on its activities for the quarter ended 31 December 2018 and thereafter:

Highlights

Matilda-Wiluna Gold Operation

- Safety - no LTIs during calendar year 2018, TRIFR below industry average

- Calendar year 2018 saw production of 2.06Mt @ 1.4g/t with a recovery of 86% for gold production of 78,089oz at an All in Sustaining Cost per ounce (AISC) of A$1,441/oz (CY 2017 Gold Production: 61,181oz)

- Dec'18 quarterly gold production of 19,016oz (Sep'18 Qtr:19,049oz)

- AISC for the Dec'18 quarter was A$1,606/oz (Sep'18 Qtr: A$1,588/oz)

- Operating cash flow of $4.0m for the quarter and $7.3m for the half

- Wiluna open pit mining re-commences for the first time in over 10 years

- Dec'18 quarterly production less than guidance due to lower than expected mined ore grades particularly in the upper levels of the open pit mines. Slower underground mining development also contributed to lower mill grade.

- FY19 production guidance revised to 72-80koz @ an AISC of A$1,500-A$1,700/oz primarily on the back of lower first half production

Reserve Development, Resources and Exploration

- Blackham total Ore Reserves increased by 27% to 26Mt @1.8g/t for 1.53Moz

- Drilling continues to focus on higher grade options to increase and improve gold production

- Golden Age Lower high grade extensions confirmed below current mining area

- Golden Age North (Upper) successfully extended over 600m of strike with high grades in the fresh rock

- Binding Heads of Agreement executed for the establishment of a Joint Venture for the development, mining and processing of gold resources from the GWR Group Limited ("GWR") Wiluna West Gold Project (Blackham 65%: GWR 35%)

- Exciting high grade drilling results at Wiluna West from all three targets drilled

Corporate

- Cash and Bullion at 31 December was $6.8m (Sep'18: $8.9m)

- Net debt at 31 December was $16.1m

- Net $10.7m of debt repayments during the half

- Blackham received an additional A$2.8 million cash in Jan'19 from sale of 20% interest in the Wiluna Cobalt-Nickel Project (not included in net debt)

- Salt Lake Potash (ASX:SO4) received approvals and commenced the construction of the Lake Way Ponds for brine storage with planned dewatering of Blackham's Williamson Open Pit in advance of mining recommencing in 2019

To view the full report, please visit:
http://abnnewswire.net/lnk/H86WN7S2


About Wiluna Mining Corporation Ltd

Wiluna Mining Corporation (ASX:WMX) 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 6.4 Moz at a grade of 2.1 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

Milan Jerkovic
Executive Chairman
Office: +61-8-9322-6418

Bryan Dixon
Managing Director
Office: +61-8-9322-6418

Jim Malone
Investor Relations
Mobile: +61-419-537-714



Link: Quarterly Activities & Cashflow Report December 2018



Related Companies

Wiluna Mining Corporation Ltd
   

Salt Lake Potash Ltd


Related Industry Topics:
Financial General Mining Gold