Blackham Resources has continued the successful turnaround of its Matilda-Wiluna Gold operation, reporting strong cashflow and new record monthly gold production for February 2018 with investors welcoming the news.
Operations continued to generate strong cash flows in February on the back of new record monthly gold production of 6,713 ounces which was achieved following access to high grade zones in the M4 and Galaxy pits late last year.
For the month, 150,000 tonnes were milled at an average rate of 5,347tpd or 1.95Mtpa annualised, which is 2 per cent higher than the previous month.
Mill feed grade improved to 1.5g/t, a 13% improvement on prior month, while high grade stockpiles were 144,000t at 1.7g/t gold and expected to grow during the current month.
February’s open pit mining stripping ratio was a low 1.5:1 (waste:ore). The low stripping ratio and increased gold production resulted in Blackham achieving a record low monthly AISC of A$912/oz in February in comparison to an average realised gold price during the month of A$1,670/oz, continuing its high margin production for the quarter to date.
“February’s operational results demonstrate a continued improvement of the turnaround that commenced in December 2017,” said Blackham’s Executive Chairman, Mr Milan Jerkovic.
Record production and further reduced costs from the Operation underpinned another month of strong cashflow, whilst maintaining stockpiles with increased grades. We remain confident that 2018 will be a transformational year that will generate significant cash flows and value for Blackham and its shareholders.”
Blackham had cash and bullion of $31.4 million while secured debt came in at $43.8 million at end of February.
Shares in Blackham were 2.2c higher at 7.5c in Thursday afternoon trading.
