Name of the Project
Matilda/Wiluna gold operation expansion project.

Location
The Matilda/Wiluna gold operation is located in Australia’s largest gold belt, which stretches from Norseman to Wiluna and passes through Kalgoorlie and Leinster.

Client
Blackham Resources.

Project Description
The operation has Joint Ore Reserves Committee-compliant resources of 61-million tonnes grading 3.1g/t for 6.1-million ounces of gold within a 20 km radius of the Wiluna gold plant.

An expansion prefeasibility study (PFS) on the operation has shown robust economics and improved economies of scale supporting the operation’s expansion.

The expansion PFS has focused on the Wiluna openpits and underground operations, as well as on incorporating the existing Matilda, Quartz Reef and Lake Way reserves and mining inventory. It is presupposed that the expanded operation will be developed through:
• the construction of a new crushing and grinding circuit to increase throughput by 1.5-million tonnes a year;
• the construction of a new flotation circuit;
• the refurbishment of the existing sulphide treatment plant, which has operated for 20 years; and
• the construction of a new carbon-in-leach circuit.

The expansion PFS envisions an economic plan to process oxide ore (1.8-million tonnes a year) and sulphide ores (1.5-million tonnes a year) for a combined processing capacity of between 2.3-million tonnes a year and 3.3-million tonnes a year.

An initial 1.47-million ounces will be mined over nine years, averaging 207 000 oz/y of gold.

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of $360-million and an internal rate of return of 123%.

Value
The PFS estimates that the expansion will cost A$113.9-million.

Duration
The expansion is expected to take about 15 months from the start of construction and is expected to be completed in June 2019.

Latest Developments
Openpit mining has started at the Wiluna gold mine. This is the first time in ten years that openpit mining has taken place at the mine.

The restart of mining at Wiluna is expected to increase plant feed grade, reduce haulage costs and significantly reduce mine sequencing risks, woing  due to more mining areas.

Mining of the Wiluna free milling pits will also significantly reduce the geological and mining risks associated with the larger sulphide pits before the recommissioning of the Wiluna plant's sulphide circuit.

Processing of the higher-grade ore started in October. In line with the mine plan adopted at the start of the year, the remaining openpits at Matilda will be mined concurrently with the Wiluna openpits for the rest of the financial year.

Meanwhile, Blackham has reported a 27% increase in reserves at the project. The reserves are now estimated at 26-million tonnes, grading 1.8 g/t gold for 1.53-million ounces of gold, while the free milling ore reserve is estimated at 550 000 oz, a 190% increase on 2017.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Blackham Resources, tel +61 8 9322 6418, fax +61 8 9322 6398 or emailinfo@blackhamresources.com.au.