Sydney, Aug 3, 2016 AEST (ABN Newswire) - Blackham Resources (
ASX:BLK) is due to commence production at their Matilda Gold Project in the coming month. Annual production is forecasted to be approximately 100,000oz Au over an initial 10 year mine life (TSI estimate).
Due to recent exploration success, Blackham has indicated that they are considering increasing the throughput capacity at their Matilda Project. We believe this could see production increase to between 180,000 to 220,000oz Au pa.
Analyst Comment: Despite a highly successful past 12 months that has seen in a significant re-rating in their market capitalisation, there is no slow down in sight for Blackham, as they have flagged a potential expansion of their processing facilities, that could see production increase to between 180,000 to 220,000oz Au pa.
The expansion of the processing facility is a result of a successful exploration campaign over the past year that has seen the mine life double in size (873koz Au). Exploration remains a key focus for the year ahead, as three drill rigs will remain on site for the foreseeable future. Key exploration targets include the strike extensions at the Matilda open pits, the upper sections of the Golden Age deposit as well as around the Wiluna mine area.
Valuation: We have increased our short term valuation for Blackham to $1.13 / share (previous $0.99 / share). The increase was due to changes in our mine life (1.01Moz Au), operating costs (C1 - $833/oz, AISC - $1,166 / oz) and our gold price (A$1,750 / oz) assumptions.
We also note our valuation increases $1.78 / share in our increased throughput scenario. Further information regarding the key assumptions in this scenario can be found in our investment analysis video.
To view the video, please visit:
http://www.abnnewswire.net/press/en/84360/BLK
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About Wiluna Mining Corporation Ltd
Wiluna Mining Corporation (ASX:WMC) (OTCMKTS:WMXCF) is a Perth based, ASX listed gold mining company that controls over 1,600 square kilometres of the Yilgarn Craton in the Northern Goldfields of WA. The Yilgarn Craton has a historic and current gold endowment of over 380 million ounces, making it one of most prolific gold regions in the world. The Company owns 100% of the Wiluna Gold Operation which has a defined resource of 8.04M oz at 1.67 g/t au. In May 2019, a new highly skilled management team took control of the Company with a clear plan to leverage the Wiluna Gold Operation's multi-million-ounce potential.
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