Australia

Blackham Resources has an opportunity to create significant value for shareholders: Arlington Group

Blackham Resources Ltd (ASX:BLK) recently reported strong results from resource and reserve development drilling at its 6.4 million ounce Wiluna Gold Mine in WA.

Independent research by Arlington Group has highlighted the opportunity for Blackham to create significant value for shareholders.

Following is an extract from Arlingtons research note:

Finding High Grade Gold Under The Head Frame

Blackham Resources have announced more high-grade gold assays from drilling within 300 metres of surface. Grades reported in the 17 March 2020 announcement include;

8m at 10.1 g/t Au at Bulletin

4m at 8.2 g/t Au at Bulletin

21m at 7.0 g/t Au at Essex

These assays follow hot-on-the-heels of the 26m at 16 g/t Au at Essex reported last month from the same drill program. Approximately 3,000 metres have been drilled to date, of a planned 45,000 metre exploration program. We expect an extended period of regular exploration announcements in the weeks and months ahead.

Additionally, with the success of the A$26m equity placement, Blackham Resources balance sheet will be able to undergo much-needed repair. Subject to the mechanics of the fully-underwritten rights issue and receipt of necessary approvals at the upcoming EGM, the Company will be able to simplify their previously complex capital structure. By our calculations, completion of the A$52m equity raising (A$26m equity placement and A$26m rights issue), will leave Blackham with net cash of approximately A$33m, should all of the secured debt be extinguished and ignoring current operations.

With a rebuilt capital structure and a significant exploration program ahead, the journey is just beginning.

Current Operations

If we now turn our attention to current free-milling operations, Blackham continue to target 70,000 to 80,000 ounces of gold at A$1,550 to A$1,750/oz for the Financial Year (FY) 2020. Free-Milling operations will continue while the Stage 1 Expansion for the sulphides operatRead More – Source