Sydney, Aug 3, 2016 AEST (ABN Newswire) - Blackham Resources (ASX:BLK) is due to commence production at their Matilda Gold Project in the coming month. Annual production is forecasted to be approximately 100,000oz Au over an initial 10 year mine life (TSI estimate).

Due to recent exploration success, Blackham has indicated that they are considering increasing the throughput capacity at their Matilda Project. We believe this could see production increase to between 180,000 to 220,000oz Au pa.

Analyst Comment: Despite a highly successful past 12 months that has seen in a significant re-rating in their market capitalisation, there is no slow down in sight for Blackham, as they have flagged a potential expansion of their processing facilities, that could see production increase to between 180,000 to 220,000oz Au pa.

The expansion of the processing facility is a result of a successful exploration campaign over the past year that has seen the mine life double in size (873koz Au). Exploration remains a key focus for the year ahead, as three drill rigs will remain on site for the foreseeable future. Key exploration targets include the strike extensions at the Matilda open pits, the upper sections of the Golden Age deposit as well as around the Wiluna mine area.

Valuation: We have increased our short term valuation for Blackham to $1.13 / share (previous $0.99 / share). The increase was due to changes in our mine life (1.01Moz Au), operating costs (C1 - $833/oz, AISC - $1,166 / oz) and our gold price (A$1,750 / oz) assumptions.

We also note our valuation increases $1.78 / share in our increased throughput scenario. Further information regarding the key assumptions in this scenario can be found in our investment analysis video.

To view the video, please visit:

The information contained in this message and any attachments may be privileged and confidential, and is intended for the exclusive use of the addressee. If you are not the addressee, any disclosure, reproduction, distribution, on-transmission, dissemination or use of the communication is strictly prohibited. Please be advised that, whilst attachments may have been checked for viruses, you should rely on your own virus-checking software and procedures.

This information is general information only. Any advice is general advice only. Neither your personal objectives, financial situation or needs have not been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice. Adam Kiley (AR No. 458224) is an authorised representative of Intelligent Financial Markets Pty Ltd (AFSL No. 426359).

About The Sophisticated Investor

The Sophisticated Investor

The Sophisticated Investor is a new equity investment tool which seeks to assist investors in becoming more informed in their investment decision making. We show and tell investors about a company in a series of short, informative videos. We possess specialist equity analyst skills and are complemented by video professionals. We conduct site visits and interview management, in a way most investors simply aren’t able to access. We promote long term value creation for investors by employing detailed financial analysis and intrinsic value calculations.

Customer notice
Adam Kiley trading as The Sophisticated Investor ('TSI'), (AR No. 458224), is an authorised representative of Intelligent Financial Markets Pty Ltd (AFSL No. 426359). The information contained in this communication is intended as general advice only. Your personal objectives, financial situation and needs have not been taken into consideration. Accordingly, you should consider how appropriate the advice is (or is not) to your objectives, financial situation and needs before acting on the advice. The information in this communication should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.

Conflict of interest
TSI does and seeks to do business with companies featured in its articles and videos. As a result, investors should be aware that TSI may have a conflict of interest that could affect the objectivity of some articles or videos. Investors should consider TSI articles and videos as only a single factor in making any investment decision. The publishers also wish to disclose that they may hold stock in some companies featured in their articles and videos, and that any decision you make to purchase the stock of a company TSI profiles should be made only after you have initiated your own enquiries as to the validity of any information contained in those articles and videos.

Publisher's note
TSI will only initiate coverage of a company that passes our internal investment checklist. Once a company has passed this checklist, we will initiate coverage of that company and follow up with ongoing updates and commentary on its activities. Articles and videos produced and published by TSI are NOT Research Reports in terms of ASIC Regulatory Guide 79.



About Wiluna Mining Corporation Ltd

Wiluna Mining Corporation LtdWiluna 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.



Adam Kiley
TSI Capital Pty Ltd
E: adam.kiley@tsicapital.com.au

Related Companies

Wiluna Mining Corporation Ltd    
The Sophisticated Investor

ABN Newswire This Page Viewed:  (Last 7 Days: 25) (Last 30 Days: 73) (Since Published: 13618)