JOHANNESBURG (miningweekly.com) – ASX-listed Blackham Resources is on track to start operations at its 4.8-million-ounce Matilda gold project, in Western Australia, in the next quarter, having now gained the final approval required for gold production to start.
Blackham reported on Tuesday that the Department of Mining and Petroleum had granted the Williamson mine mining proposal, following the recent approval of the Matilda mine and Wiluna mining proposals.
The Department of Water had also granted all the water extraction licences, which were needed to begin dewatering the Matilda pits.
As a result of receiving these permits, the A$23-million project facility from Orion Mine Finance had become available, with Blackham having lodged a drawdown notice for A$15-million.
Blackham and Orion had also agreed to extend the expiry term on the facility from August 31, 2018, to February 28, 2019, with repayments to be matched to the gold price and cash flow resulting from the projects.
Blackham reported that the tailings storage facility contractor had mobilised to site and that the openpit and underground mining contractors would mobile to the site later this month.
Gold production would start in the September quarter.
A prefeasibility study in late 2015 found that the Matilda mine would deliver an average 98 000 oz/y over a mine life of nearly five years, at a life-of-mine C1 cash cost of A$920/oz.