Blackham Resources Ltd (ASX: BLK) has signed a Joint Venture Agreement (JVA) with GWR Group Ltdto mine the Wiluna West Gold Project.
The JVA sets the framework for Blackham and GWR to delineate and mine gold deposits at Wiluna West and for processing to take place at Blackham’s 100% owned Wiluna Plant, located just 40 km away.
The Wiluna West Gold Project contains a combined JORC 2004 and JORC 2012 Mineral Resource estimate of 4,167,000 tonnes at 2.2 g/t Au for an estimated 289,000 oz Au.
Golden Monarch is targeted as the start-up mine, with a pipe-line of open pits in development including Eagle, Emu and Iron King.
Blackham’s Executive Chairman, Mr Milan Jerkovic said the Joint Venture is a strategic and logistical opportunity for his company.
The JV is an opportunity to partner with an emerging junior gold miner in the Wiluna district and aligns with Blackham’s strategy to utilise the Wiluna Plant to process external party ore as it seeks to optimise free milling operations as part of its transition to its Stage 1 Sulphide Expansion,” Mr Jerkovic said.
Under the JV, GWR will be responsible for drilling the gold deposits out to JORC 2012 compliant level with a minimum of 75% in the indicated category, within an optimised pit shell. GWR will also be responsible for Scoping Study level metallurgical testwork and gaining statutory mining approvals.
Mr Jerkovic said that after the completion of mineral resource definition and initial metallurgical testwork, GWR may introduce the deposit to Blackham as a Proposed Qualifying Deposit. Blackham will then undertake a Feasibility Study (to a minimum Pre- Feasibility Study level) to determine the economic potential of the project.
Upon completion of a positive Feasibility Study for a Qualifying Deposit, the deposit will be included in the Joint Venture. All costs after the Feasibility Study will be shared in proportion to ownership, as is the entitlement to gold production.
“Under the JV, Blackham commits to be the manager of the Joint Venture, which includes pre-development /mine setup, mining operations and processing of gold deposits from Wiluna West through Blackham’s Wiluna Gold Plant as well as the refining of doré gold.”