14/06/2016 - 13:51

Gold projects set to proceed

14/06/2016 - 13:51

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Perth-based gold stocks Blackham Resources and Red 5 are a step closer to commencing major new developments after completing feasibility studies and receiving final approvals.

Blackham's Matilda gold project in Wiluna.

Perth-based gold stocks Blackham Resources and Red 5 are a step closer to commencing major new developments after completing feasibility studies and receiving final approvals.

Blackham announced today it had received its final approvals required to commence operations at its Matilda gold project near Wiluna, including an environmental licence from the Department of Environment Regulation, and mining approval from the Department of Mines and Petroleum.

It also received water extraction licences from the Department of Water.

“Furthermore, Blackham is pleased to report that as a result of receiving the permits, Orion Mine Finance has confirmed the $23 million project facility is now available,” Blackham said.

The expiry term on the facility has also been extended by several months to February 2019, with Blackham to receive an initial $15 million drawdown within two weeks.

“Plant and infrastructure refurbishment is progressing well and remains on schedule,” the company said.

“The tailings storage facility contractor has mobilised to site.”

Blackham expects open-pit and underground mining contractors to be on site during the month, with gold production set to commence during the September quarter.

Meanwhile, Red 5 has released an updated feasibility study on its Siana underground development in the Philippines, which has an estimated capex of $US60 million ($A80 million) to bring it into production.

The feasibility study, completed by Mining One, estimated gold production of about 60,000 ounces per annum over an eight-year mine life, at an all-in sustaining cost of $US930 to $US980 per tonne.

Development of an underground mine at Siana has been marked for a start during the second half of the year.

“This is a great result for the Red 5 group, with the successful update of the underground feasibility study marking a significant milestone for the Siana operation,” Red 5 managing director Mark Williams said.

“This demonstrates that the proposed Siana underground development is an economically robust project that will significantly extend the life of the Siana operation well beyond the current open pit operation, with an initial mine plan based on the extraction of 504,000oz of gold over a nine-year mine life including development.”

The cost of the project includes construction of a paste plant, infrastructure and underground development.

Ore from the operation will be processed at an existing 1.1 million tonnes per annum processing facility located at Siana.

Blackham shares were 2.1 per cent higher to 47.5 cents each at 1:50pm.

Red 5 shares were 3.4 per cent lower to 8.5 cents each.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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