Agreement Over Wiluna West Gold Project
- A binding Heads of Agreement ("HoA") has been executed between Blackham Resources Limited (ASX:BLK) and GWR Group Limited (ASX:GWR) for the exploration, development, mining and processing of gold resources from GWR's Wiluna West Gold Project providing access to additional free milling inventory.
- The mineral processing Joint Venture Arrangement is a 65% (BLK) and 35% (GWR) profit share.
- An existing resource of 254,000 ounces is located 40km by road from the Wiluna processing plant.
- Under the HoA, GWR is responsible for drilling deposits to JORC (2012) Indicated Resource category at their cost.
- Blackham will conduct Feasibility Studies, and if positive, undertake mining, transport and processing of gold ore. All costs after the feasibility studies will be shared in proportion to ownership.
- Initial focus will be on Golden Monarch, Emu and Eagle deposits with approval processes well advanced with mining potentially commencing in mid-2019.
The Mineral Resource Estimate for the Wiluna West Gold Project was originally published in GWR's ASX announcement dated 14 June 2010 and was prepared and first disclosed under the JORC Code 2004. A JORC 2012 Mineral Resource estimate for the Golden Monarch gold deposit of 747,000 tonnes at 2.2 g/t Au for 52,400 oz using a 0.5 g/t lower cut off within a 0.5 g/t wireframe was announced on the 31st October 2017.
Blackham Managing Director, Bryan Dixon said "This GWR Agreement represents an opportunity to partner with an emerging junior in the Wiluna District for the benefit of both parties and is consistent with Blackham's strategy of strengthening and lengthening its free milling reserves within trucking distance of its Wiluna Gold Plant. The agreement applies to 25km of prospective strike of free milling mineralisation with existing resources that has had limited drilling over the past 15 years."
A joint venture agreement is planned for execution in December 2018 defining the comprehensive agreement terms outlined in the HoA. The key terms are:
- GWR will be responsible for drilling the separate gold deposits to JORC (2012) compliant level with a minimum Indicated category at their cost. GWR will also be responsible for initial metallurgical test work and approvals associated with the deposits.
- Blackham will undertake Feasibility Studies to determine the economic potential of the deposits. Upon completion of a positive Feasibility Study, Blackham can elect to schedule the commencement of mining and processing of the ore reserves.
- Blackham will commit to be the manager of the Joint Venture, which includes the predevelopment/mine setup, mining operations and processing the gold ore from the Wiluna West Gold Project through the Wiluna Gold Plant.
- Once mining commences all costs will be shared in proportion to the JV ownership (BLK: 65%, GWR: 35%) with the bullion produced shared under the same ratio.
GWR has recently completed additional resource definition drilling and is undertaking the necessary ancillary studies to facilitate mining approvals. The first planned deposits to be mined are Golden Monarch and Eagle/Emu. Further details are provided in GWR's ASX release dated 22 November 2018.
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About Blackham Resources Ltd
Blackham Resources Limited (ASX:BLK) (OTCMKTS:BKHRF) Wiluna-Matilda Gold Operation is located in Australia's largest gold belt which stretches from Norseman through Kalgoorlie to Wiluna. The Operation now includes resources of 96Mt @ 2.2g/t for 6.7Moz Au all within 20kms of the central processing facility. Blackham has consolidated the entire Wiluna Goldfield within a +1,440km2 tenure package which has historically produced in excess of 4.4 million ounces over a 120-year mining history.
GWR Group Limited
Blackham Resources Ltd