Record Quarter of Gold Production for Blackham
- 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) 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.
Blackham Resources Ltd