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.

Project Owner/s
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.

Potential Job Creation
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%.

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

Planned Start /End Date
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
Blackham Resources will raise A$26-million through a fully underwritten renounceable entitlement offer to fund its production expansion to 100 000 oz/y.

Eligible shareholders will be offered five new fully paid ordinary shares for every four shares held, at a price of 1.5c each, to raise the funds. The company will also issue one free attaching option for every three new shares issued, with the options exercisable at 3c each before October 2020.

Blackham’s financing providers MACA and The Lind Partners have agreed to provide general subunderwriting commitments totalling A$10-million, with Lind also agreeing to a standstill on any equity conversion under its converting note agreement below a price of 1.8c, until the end of June this year.

The funds raised will be used on operational improvements to its existing Matilda/Wiluna operations to increase production while completing the expansion definitive feasibility study (DFS) and resource and reserve drilling. The funds will also be used for ongoing working capital.

The expansion DFS is focused on a two-stage model, with the Stage 1 expansion from the current range of between 80 000 oz/y and 100 000 oz/y, to between 100 000 oz/y and 120 000 oz/y. The Stage 2 expansion will increase gold production to about 250 000 oz/y.

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.