JOHANNESBURG (miningweekly.com) – Near-term gold producer Blackham Resources has raised A$25-million through an oversubscribed placement, which received strong institutional support.
Blackham would use the proceeds of the placement to fast-track development at its 5.1-million-ounce Matilda gold project, where production is set to start in three weeks, MD Bryan Dixon reported on Friday.
“The funding allows for a significant drill budget aiming to lengthen the mine life. We will be fast-tracking the plant expansion study on the Matilda-Wiluna gold project that has an endowment greater than nine-million ounces,” he commented in a statement.
Blackham would focus on expanding the oxide and free milling resources and reserves, growing the sulphide openpit and underground mine plan and reserves, while fast-tracking the plant expansion study and sulphide circuit refurbishment.
Reporting on the progress towards production at Matilda, Blackham stated that the crushing circuit had been energised, mills were mechanically complete and the relining had started. The leach tank wet commissioning was expected later this month and the new tailings dam was being commissioned.
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.
Blackham’s 100%-owned Wiluna gold plant, which operated until 2013, is located in the centre of the Matilda gold project and can process up to 100 000 oz/y.
The Matilda gold project is located in Australia’s largest gold belt, which stretches from Norseman and Kalgoorlie to Wiluna.