Matilda/Wiluna expansion study doubles production expectations

PERTH (miningweekly.com) – A prefeasibility study (PFS) into the expansion of the Matilda/Wiluna gold operation, in Western Australia, has confirmed robust economics for ASX-listed Blackham Resources.

The expanded operation will be developed through the construction of a new crushing and grinding circuit to increase throughput by 1.5-million tonnes to 3.3-million tonnes a year, the construction of a new flotation circuit, the refurbishment of the existing sulphide treatment plant, and the construction of a new carbon-in-leach circuit.

The expansion PFS focuses on the Wiluna openpits and underground operations, while incorporating the existing Matilda, Quartz Reef and Lake Way reserves and mining inventory.

The PFS estimates that the expansion will cost some A$113.9-million and will deliver an initial 1.47-million ounces over an initial nine years, averaging 207 000 oz/y.

The current Matilda project is expected to produce some 100 000 oz/y over an eight-year mine life.

The expansion project is expected to generate cash flows of some A$571-million. It has a net present value of A$360-million and an internal rate of return of 123%.

“The Wiluna expansion plan aims to achieve a step change in gold production from the 6.2-million-ounce resource at the Matilda/Wiluna operation. The expansion PFS has confirmed gold production averaging 207 000 oz/y is achievable on a very capital efficient basis for a likely long mine life,” said Blackham MD Bryan Dixon.

“Very few Australian gold operations operate at this scale with long mine lives, which proves the significance of the Wiluna goldfields as a major gold province for the future.”

Blackham told shareholders on Wednesday that the company was continuing to advance board approval for the expansion definitive feasibility study (DFS), with a view to monetise a larger portion of the 6.2-million-ounce Matilda/Wiluna operation.

The expansion DFS will be completed by the end of the March quarter next year.