Blackham’s Wiluna plant on track for August commissioning and first production imminent
Shares in Blackham Resources (BLK) continue to break new highs with the company’s shares spiking more than 5% on Monday morning, breaking through the $1.00 mark for the first time since early 2008. Its shares have more than doubled in the last two months on the back of strong exploration news and the commencement of mining at its Matilda project.
The key trigger for today’s rerating was news that the company’s Wiluna processing plant was on track to be commissioned in August.
It should be noted that share prices are subject to fluctuations and production goals may not necessarily be met and investors should take a cautious approach to any investment decision regarding BLK and not base a decision solely on the historical performances.
With the expanded Matilda gold project boasting 48 million tonnes grading 3.3 grams per tonne for 5.1 million ounces of gold, this is an important milestone for the group.
Blackham has already commenced open pit mining and underground development work at Matilda and the 100% owned Wiluna gold plant has the capacity to process up to 100,000 ounces per annum.
Management has established a strong track record of delivering on projected milestones and one of the most closely watched will be targeted gold production within three weeks. While this has been well flagged, it is not unusual for investors to respond positively to the event when it actually materialises.
With an eight year mine life across four substantial gold systems and an aggressive exploration program in place there is scope for important news flow. In the near to medium-term, management’s range of expansion studies are aimed at growing production to between 175,000 ounces per annum and 230,000 ounces per annum while better monetising the expanded output.
As can be seen below, Wiluna is key to the group’s expansion strategy and should strong news flow regarding robust grades continue, this is likely to be a positive share price catalyst.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.