viewBlackham Resources Ltd

Blackham Resources guides to gold production growth in FY20

The company produces gold from its flagship Matilda-Wiluna Gold Operation in Western Australia.

growth concept
Gold mining operations are now accessing main ore zones across multiple open pits

Blackham Resources Ltd (ASX:BLK) has guided to production of between 70,000 and 80,000 ounces of gold at an all-in sustaining cost (AISC) of A$1,550-$1,750 per ounce in FY2020.

This represents annual production growth of 7-22% on FY19 which produced 65,406 ounces of gold at an AISC of A$1,760 per ounce.

Production in FY20 will be focussed on free milling ore bodies prior to Blackham transitioning to Stage 1 of its Sulphide Expansion Project, which is planned to commence production during FY21.

In the near-term, production guidance for the current September 2019 quarter has been set at 17,500-19,500 ounces at an AISC of A$1,550-$1,750 per ounce.

READ: Blackham Resources produces 65,406 ounces in FY19 and does $10 million cash deal

Blackham’s executive chairman Milan Jerkovic said: “Blackham looks forward to an improved period of production as it benefits from investments made so far during 2019 as well as continuing to improve operational performance through cost reduction, and by mining its highest margin reserves to improve operational cash flow.

“FY20 should be an exciting period for Blackham as it progresses its strategy associated with its Sulphide Expansion Project to unlock the large sulphide reserves and resources at Wiluna.”

FY20 AISC includes capex of $16 million

It is worth pointing out that the FY20’s AISC guidance includes $11 million of sustaining capex and $5 million of non-sustaining capex.

The $11 million sustaining capex mostly comprises the construction of a new tailings storage facility, which will provide storage capacity for the ongoing operations.

Expansion tipped to begin in October 2019

Blackham plans to expand production at Matilda-Wiluna through two stages of expansion, stage I targeting 100,000-120,000 ounces of gold per annum and stage two increasing to 250,000 ounces per annum.

Stage I focuses on the production of a gold concentrate predominantly from the Wiluna underground with flexibility to also process its free milling and tailings Reserves.

Blackham’s Stage 1 Sulphide Expansion Project1 is forecast to commence in October 2019.

Quick facts: Blackham Resources Ltd

Price: 0.016 AUD

Market: ASX
Market Cap: $160.45 m

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