Blackham Resources has executed an agreement with the GWR Group with respect to the Wiluna West gold project.
GWR’s gold project lies approximately 40km west by road of Blackham’s treatment plant. The Wiluna West Gold Project has defined free milling gold resources with a combined inventory of 254,000 ounces.
The Mineral Resource Estimate for the Wiluna West Gold Project was originally published in GWR’s ASX announcement dated 14 June 2010 and was prepared and first disclosed under the JORC Code 2004. A JORC 2012 Mineral Resource estimate for the Golden Monarch gold deposit of 747,000 tonnes at 2.2 g/t Au for 52,400 oz using a 0.5 g/t lower cut off within a 0.5 g/t wireframe was announced on the 31st October 2017.
Blackham Managing Director, Bryan Dixon said “This GWR Agreement represents an opportunity to partner with an emerging junior in the Wiluna District for the benefit of both parties and is consistent with Blackham’s strategy of strengthening and lengthening its free milling reserves within trucking distance of its Wiluna Gold Plant. The agreement applies to 25km of prospective strike of free milling mineralisation with existing resources that has had limited drilling over the past 15 years.”
A joint venture agreement is planned for execution in December 2018 defining the comprehensive agreement terms outlined in the HoA. The key terms are:
GWR will be responsible for drilling the separate gold deposits to JORC (2012) compliant level with a minimum Indicated category at their cost. GWR will also be responsible for initial metallurgical test work and approvals associated with the deposits.
Blackham will undertake Feasibility Studies to determine the economic potential of the deposits. Upon completion of a positive Feasibility Study, Blackham can elect to schedule the commencement of mining and processing of the ore reserves.
Blackham will commit to be the manager of the Joint Venture, which includes the predevelopment/mine setup, mining operations and processing the gold ore from the Wiluna West Gold Project through the Wiluna Gold Plant.
Once mining commences all costs will be shared in proportion to the JV ownership (BLK: 65%, GWR: 35%) with the bullion produced shared under the same ratio.
Source: Company Press Release