Total interest attributable to Polo: 5.98%.
Incorporated in 2006, Blackham Resources (ASX: BLK) is an Australian exploration company focused on the development of gold projects in Western Australia and coal projects in Southwest Australia.
In February 2016, Blackham released a Definitive Feasibility Study (DFS) which further verified the very strong economics for the Matilda Project. All key mining parameters improved: Mining Inventory 8.3 million tonnes at 2.9 grams/tonne for a total 767,000 ounces; Ore Reserve Estimate 6.1 million tonnes at 2.5 grams/tonne for 481,000 ounces; mine life over 7 years; and average production first five years 101,000 ounces/year. Start-up capital is still low but slightly increased to $32 million and key economic indicators improved (based on A$1,550/ounce): NPV (pre-tax) A$170 million, payback 12 months and IRR (pre-tax) 150%.
In July 2016, Blackham reported that it has successfully achieved another milestone towards gold production with the commencement of open pit mining operations and underground development work at the company's Matilda Gold Project ("the Project"). Contractors have commenced mining at the Matilda M10 open pit and underground development work at the high grade Golden Age orebody has begun. Wet commissioning of the Wiluna processing plant is on track to begin in August 2016.
The commencement of mining represents another significant milestone in Blackham's transition from gold explorer to gold producer at a time of record Australian gold prices and gold production remains on track for the September 2016 Quarter.
The Project has an initial mine life of 8 years that has the potential to grow rapidly. Blackham's 780 sq km tenement area is highly prospective and recently it was announced that its exploration team had already managed to:
- Increase the Project's Ore Reserves to 7.0 million tonnes @ 2.5g/t for 560,000 ounces, up 17% since the Project's Definitive Feasibility Study ("DFS")
- Increase the Mining Inventory to 9.3 million tonnes @ 2.9g/t for 873,000 ounces (up 14% since the DFS)
- Increase the Project's Resource to 48 million tonnes @ 3.3g/t for 5.1 million ounces (48% Indicated) all located within a 20km radius of Blackham's Wiluna gold plant.
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