Blackham Resources Ltd (ASX:BLK) has achieved record gold production of 40,024 ounces for the six months to June 2018 at its Matilda‐Wiluna Gold Operation in Western Australia, a 31% increase on the last half.
Resolution of the mine sequencing issues experienced in the December 2017 half have enabled improved gold production with mill feed comprising mainly higher grade run of mine ore and being less dependent on low-grade stockpiles.
Significant improvements were achieved to mill throughput (+12%) from continued debottlenecking of the crushing, milling and leaching circuits.
Blackham executive chairman Milan Jerkovic said: “The June half’s operational results demonstrate significantly stronger production and a step change in the operation’s economics that commenced in December 2017.
“Record production and significantly reduced costs underpinned stronger operational cash flows for the half.”
Substantial reduction in costs
All in sustaining costs (AISC) for the half were A$1,294 per ounce (Dec’17 half: A$2,063/ounce) resulting from a step change in economics being achieved during the half.
Excluding the impact of sustaining capex, which mainly comprised a tailings dam lift, AISC for the half was A$1,141/ounce.
Guidance for financial year 2019
Production guidance for the 6.5-million-ounce Matilda‐Wiluna Gold Operation in FY19 is 77,000‐89,000 ounces at an AISC (all-in sustaining cost) of A$1,250‐$1,450 per ounce.
FY19 AISC is expected to be higher than life of mine AISC, particularly in the first half, due to the investment required to strip new mining areas in the M1 and M2 pits to maintain a high mill throughput.
The second quarter will incur mobilisation costs of moving to the Wiluna open pits which are anticipated to underpin the long-term future of the operation.
Jerkovic added: “The company looks forward to increasing production in FY2019 as the operation transitions to the Wiluna open pits”