The dream getting real for Blackham
Things are getting real for Blackham Resources (ASX:BLK), as it has drawn down $7 million of a loan facility partially to order long lead items for its gold plant at Wiluna.
It told its shareholders this morning that it had drawn down the $7 million from a previously announced $30 million debt facility inked with Orion Mine Finance.
BLK said that the $7 million in funds, expected to land in BLK’s bank account within 10 days, would be to order long-lead items for its gold plant, due to start up in the second quarter next year.
It’s a sign that things are starting to move from being conceptual to being very real for BLK.
The money will also go towards initial plant and infrastructure refurbishment; additional drilling to extend mine reserves and; completion of a definitive feasibility study.
BLK also confirmed that the DFS would be available next month, which is expected to take in a swathe of drilling done at several key deposits over the past few months.
“A lot of the DFS work programmes have been completed,” managing director Bryan Dixon said.
“The early drawdown of these funds allows the Blackham team to look beyond the studies and begin the first stages of development work.”
About Blackham’s gold dreams
BLK is planning to bring gold from the Matilda Gold Project from the Northern Yilgarn region in Western Australia into production using the existing, but mothballed, Wiluna Gold Plant.
At this stage, the plant is slated to produce just a shade under 100,000 ounces of gold per year.
The aim is to start producing gold in the second quarter of next year, with the first stage of production to utilise soft oxide and free milling, using the existing resources at the Matilda Mine, with additional gold ores coming from the high grade reefs like Golden Age, Galaxy and Caledonia.
The overall project has a total measured, indicated, and inferred resource of 44 million tonnes of gold at an average grade of 3.3 grams per tonne for a total of 4.6 million ounces of gold. However, measured and indicated make up 20Mt @ 3.5g/t for 2.3Moz of this.