Ann: Appointment of GM Projects and Business Improvement, page-14

It's been an interesting week.....the POG is way high at AU$1900+ /oz but couldn't prevent Gascoyne Resources from going into voluntary administration, or restrain the Dacian Gold SP from plunging into the abyss. Of course the common theme between Gascoyne, Dacian Gold & Blackham is the problematic & costly disparity between gold reserves / resource modelling & physical gold produced.

Blackham's gold reserve announcement dated 31/10/18 puts Matilda & Wiluna free milling ore 1.7 g/t, yet the best grade they've managed to date (with some high-grade contribution from the Golden Age UG) is 1.5 g/t. Additionally, the Williamson pit free milling ore is shown in the reserves announcement as being 2.2 g/t, yet historical mining of the Williamson pit suggests it's probably much less @ 1.7 - 1.8 g/t (refer pg.3 in the below link under the heading 'outlook')

https://www.asx.com.au/asxpdf/20070131/pdf/310qpl29wqx73g.pdf

Out-of-control costs are being largely driven by over-optimistic management expectations & poor decisions, over-estimated reserve grades, over-estimated resources & severe under-performance in production. Will the new man at BLK have what it takes to navigate the company into becoming a profitable operation? Only time will tell, but I think the Wiluna geology will always have the last laugh.