logo-loader

Blackham Resources advancing Matilda Gold to early 2016 restart

Published: 08:50 01 May 2015 BST

blackham_resources_wiluna_gold_plant_358_55442cb34115b

Blackham Resources (ASX:BLK) is progressing its Matilda Gold Project in Western Australia with a view towards starting mining operations in the first quarter of 2016 with gold pour in the second quarter.

The company is currently focused on extending soft free milling ore resources of 13 million tonnes at 1.8g/t for 760,000 ounces for the 1.3 million tonne per annum Wiluna gold plant.

Work is also expected to increase confidence in the initial Mining Inventory of 4.9Mt at 2.8g/t for 454,000 ounces of gold and expand the open pits to the north and south.

This could in turn increase the project’s mine life beyond the current 4 years.

Mining contractor rates were re-quoted in April resulting in an overall reduction on the previous quotes received 18 months ago.

The revised rates will be used in the Pre-Feasibility Study over the project.


Mining Engineering and Associated Studies


Studies are in progress on costing and engineering work associated with the open pits at Matilda, Galaxy, Williamson and Bulletin South plus underground at Golden Age, East, West Lodes and Calvert.

Geotechnical work has continued with inspections of the as-mined pits being undertaken in conjunction with a review of diamond core stored on site.

The Matilda Mine resource is in the process of being re-estimated to include the recently discovered Iceberg 2 and Scorchers zones immediately north and south of the planned M4 pit.
   
This is expected to be finalised in May.

Following this, new optimisations will be conducted over the Matilda Mine while planned geotechnical drilling will be expanded to include the Iceberg 2 and Scorchers zones.

Underground geotechnical work has also commenced on stope design parameters at Golden Age, East, West Lodes and Calvert.

The second stage of this work will coincide with the re-entry of the underground for diamond drilling.

During the March 2015 Quarter, a project management plan was prepared and submitted to the Department of Mines and Petroleum for re-entry to the Wiluna underground.

Access is being sought to enable cost effective drilling of the Golden Age plus the footwall and hanging wall reefs of Brothers and Republic.


Plant and Metallurgy

A review was conducted on the plant and metallurgy test work during the quarter to ensure the areas of focus for the PFS have been identified.

Long lead items are also being assessed with quotation work underway for the Mill 2 Girth Gear, plus the clean-up of the plant is continuing to aid investigation work for refurbishment estimates for the PFS.

High voltage electrical installations were inspected at the plant and the back-up diesel generating capacity reviewed.

It is envisaged that part of the diesel generator capacity and associated infrastructure will be used to re-energise specific areas of the plant and mine to provide power to the Wiluna Underground for the purposes of re-entry and diamond drilling.

The Galaxy metallurgical test work will be expanded with diamond drilling planned to ensure sufficient samples are tested for PFS level assessment.

Further work will also be conducted at Matilda to aid in the optimisation of the plant and incorporating any test work required on extensions to the current pit designs due to the successful discovery of the Iceberg 2 and Scorchers zones immediately north and south of the M4 pit.


Republic Drilling

Blackham is currently drilling an initial three hole program totalling 1,300 metres aimed at following up on seven historical successful intercepts by testing the most prospective core of the reef close to the East Lode Fault.

The drilling is in line with the company’s focus on free-milling gold targets and resources within open pit or shallow underground depths in close proximity to the Wiluna plant and capable of being brought into the early years of the mine plan.


Analysis

Blackham Resources is closing on development of its Matilda Gold Project with mining anticipated to start in the first quarter of 2016 and first gold pour in the following quarter.

Project economics look set to improve with an overall reduction in mining contractor rates and initial mine inventory likely to increase from the current 454,000 ounces of gold due to the discovery of the Iceberg 2 and Scorchers zones immediately north and south of the planned M4 pit.

An update on the free milling Matilda Mine resource s expected to be released this month.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

Chesnara reports strong 2023 results with improved cash generation and...

Chesnara PLC (LSE:CSN) chief executive Steve Murray discusses the company's full-year results for 2023 with Proactive's Stephen Gunnion, describing them as strong and particularly highlighting £53 million in commercial cash generation and a dividend coverage of around 150%. The company has...

1 hour, 31 minutes ago