Name of the Project
Matilda/Wiluna gold operation expansion project.

Location
The Matilda/Wiluna gold operation is located in Australia’s largest gold belt, which stretches from Norseman to Wiluna and passes through Kalgoorlie and Leinster.

Client
Blackham Resources.

Project Description
The operation has Joint Ore Reserves Committee-compliant resources of 61-million tonnes grading 3.1g/t for 6.1-million ounces of gold within a 20 km radius of the Wiluna gold plant.

An expansion prefeasibility study (PFS) on the operation has shown robust economics and improved economies of scale supporting the operation’s expansion.

The expansion PFS has focused on the Wiluna openpits and underground operations, as well as on incorporating the existing Matilda, Quartz Reef and Lake Way reserves and mining inventory. It is presupposed that the expanded operation will be developed through:
• the construction of a new crushing and grinding circuit to increase throughput by 1.5-million tonnes a year;
• the construction of a new flotation circuit;
• the refurbishment of the existing sulphide treatment plant, which has operated for 20 years; and
• the construction of a new carbon-in-leach circuit.

The expansion PFS envisions an economic plan to process oxide ore (1.8-million tonnes a year) and sulphide ores (1.5-million tonnes a year) for a combined processing capacity of between 2.3-million tonnes a year and 3.3-million tonnes a year.

An initial 1.47-million ounces will be mined over nine years, averaging 207 000 oz/y of gold.

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of $360-million and an internal rate of return of 123%.

Value
The PFS estimates that the expansion will cost A$113.9-million.

Duration
The expansion is expected to take about 15 months from the start of construction and is expected to be completed in June 2019.

Latest Developments
Blackham Resources has taken a major step towards completing the refinancing of the Matilda/Wiluna operation, with an agreed initial A$60-million funding package with Pacific Road Capital.

The proceeds will be used to refinance Blackham’s current debt facility, strengthen and expand reserves, complete expansion studies and provide additional working capital.

The first repayment date for the new loan facilities is in June 2020, which means the company’s short-term working capital position will be improved significantly.

Blackham will also launch a renounceable rights issue to raise A$12.3-million at 12c apiece. Pacific Road has offered to subunderwrite up to A$2.65-million of the offer, while it also includes a A$7.35-million equity private placement and loan facilities totalling A$50-million.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Blackham Resources, tel +61 8 9322 6418, fax +61 8 9322 6398 or emailinfo@blackhamresources.com.au.