The interview is online since yesterday and a translation from english (only in german available).
http://www.miningscout.de/unternehm...produzent-nach-steinigem-weg-wieder-auf-kurs/
This is a quick google-translation:
Interview with Bryan Dixon, Managing Director of Blackham Resources
Miningscout: The share price of Blackham Resources Ltd. Is in a downtrend, although production on the Matilda / Wiluna Gold Project is currently underway. The production of spring 2017 was influenced by exceptionally violent rainfall events, which appeared and slowed down in open pit mining, as well as the production of underground and the processing plant. Are the planned production capacity and the expected throughput of the processing plants now back on schedule? Does not matter, which means that it is time.
Bryan Dixon: for the extreme weather conditions, the production was affected mainly in March and the first half of April. After all, once a month of production capacity was lost. Effective gold production for the financial year 2017 to 40,000 to 42,000 ounces. On the other hand, we are pleased to announce that the demolition and throughput of the processing plants will be achieved in the second half of April and in May
Miningscout: Another aspect that affects the planned guide values of production are lower grades of the Golden Age underground operation (as published in the April 3, 2017 announcement). Within the scope of the news published on the ASX on April 13, 2017, a new geological model for the Golden Age was conceived and confirmed in principle, which can confirm and define an ore body of limited continuity (= continuity) in the upper eastern region. In the context of this finding, further control mechanisms have been established in order to assess the distribution of contents and together possible possible geological control structures and further geological framework conditions in order to keep track of underground mining and to guarantee the expected output to target at a given average content.
Bryan Dixon: The company has set up an extensive program to control the underground ore grades of Golden Age to provide a better understanding of the geological underground conditions. Ultimately, we are pursuing a somewhat more risky approach as we use an intensive drill program to explore and delineate ore bodies instead of producing more costly testing tunnels and driveways. In the meantime, the upper levels have seen a decline in profits and we expect the levels to improve as a result of the development of the mining chambers. The more intensive exploration program with regard to underground drilling will also enable a better understanding of the expected future contents and structural uniformity. In addition, these additional drillings have shown some additional possibilities outside the current dismantling plan.
Miningscout: At the Sidney Riu Conference in May 2017, the presentation stated that recent drilling in the central area of the East West Pit has intersected significant mineralization. In the past, limited exploration activities, which were mostly designed for near-surface mineralization for opencast operations or for high-grade structures (so-called quarz reefs), are certainly a plausible explanation for these exploration results in the close-up of historical campaigns. Regarding the news published on the ASX on 10 February 2017, Blackham Resources Ltd. In the vicinity of the Wiluna opencast mine, a 60,000 meter drill program was implemented. Are the above-mentioned areas, with insufficient historical exploration, an objective of this drilling program, or is the main focus of the drilling program on the revaluation of known resources to reserves?
Bryan Dixon: Both. The company has recently completed a 50,000-meter drill program focused primarily on open pit mining on Wiluna, including the East West Mine and the Happy Bay Pit. The results in the East West area were outstanding and will underpin the preliminary extension study, which was recently announced. We find a lot of gold in inadequately explored areas, which will contribute to an increase in resources, but with the recently successfully completed drill program, we are also targeting the revaluation of a significant amount of resources into the reserve category.
Miningscout: Blackham Resources has recently issued two capital increases by issuing new shares (AUD $ 35 million at AUD $ 0.6 per share, published on February 10, 2017 and AUD 25 million at AUD 1.00 per share, published on 19 August 2016). In mid-May 2017, the price now stands at 0.35 AUD, in mid-June 2017 it is about 0.30 AUD. Does this decline in the share price from your point of view account for the extreme rainfall events and the associated slow development of the projects, or is a lower but more realistic estimate of the expected production volumes due to the adapted geological model and the expected production output the main cause?
Bryan Dixon: The lower share price reflects the disappointment that the company is unlikely to reach the set production targets. The main reasons for this are the climatic and weather-related effects from spring 2017 as well as the temporary low yield of Golden Age, which is reflected in low gold grades.
Miningscout: Compared to the current share price, the last two financing rounds were carried out with significant mark-ups. Do you think the current level of the Blackham Resources share price is a possible takeover target, or that strategic investors could build or expand a position? Or could the decay of the share price be the result of a restructuring of a portfolio of an investor that currently reduces its own position without regard for the day's prices?
Bryan Dixon: Please understand that we are not participating in such speculations. With regard to the accumulation or reduction of positions by our main shareholders, I would ask you to review the relevant documents, which are also published on the ASX. The management of Blackham can only explain the reasons for the decline in the price and discuss the prospects for the coming developments. And since Blackham Resources is now back on the right track after the difficulties last spring.
Miningscout: The current gold price should provide a healthy margin for a larger number of gold mining and gold mining projects. What is the current framework for Blackham Resources' All-In Sustaining Costs (AISC) and what is the expected level of Phase 1 after a constant and stable production?
Bryan Dixon: The AISC in March were mainly characterized by a one-meter cost (primarily ablation of the M4 pit on Matilda) and lower throughput and lower contents. A not insignificant part is attributable to the rainfall events and we can currently observe a decrease in costs to the level estimated at over 1.200 AUD per ounce of gold over the mine runtime.
Miningscout: On May 8th, 2017, Blackham Resources announced that an expansion of the mining activity on Wiluna was planned in two stages. Can you give us an overview of these two phases and what would each of these phases mean in terms of the capacity of the production, the processing capacity of ore and the possible integration of other ore bodies in the deposit into the degradation planning?
As part of the Sidney RIU Conference, it was reported that the estimated costs are as follows:
Phase 2A: AUD 24.9 million for 0.75 Mtpa
Phase 2B: 80.5 million AUD for a combined capacity of 3.2 Mtpa
How is the financing of these phases planned? Will pure funding be sought through continuous production, a combination of forward sales of gold and loans, or an additional capital increase? And, roughly estimated, what is the approximate period for the implementation and commissioning of phase 2A and phase 2B?
Bryan Dixon: Financing is to come from the operating business as well as from other loans, taking care not to put too much credit or debts into the balance sheet. As soon as we achieve continuous production, EBITDA will be approximately $ 35 million, thus providing us with sufficient cash, which will allow us, in combination with some other loans, to fund the phases of the expansion plans financially.
Miningscout: The occurrence shows both oxidic and sulphidic mineralization and degradation at different locations (opencast mining, underground) will most likely produce varying ratios of oxide and sulphide. Is the treatment cycle capable of treating both types of mineralization, or are certain ores stored on stockpiles and treated at a later time?
Bryan Dixon: At the moment, we have an oxide circuit that is designed to treat oxide ore. As part of the expansion, the existing Sulphid cycle (with some modifications), which is currently in the maintenance and maintenance mode, is to be put into operation again. From then on, both circuits should be operated in parallel.
Miningscout: As indicated by the recently published drill results, Blackham Resources has a more comprehensive understanding of the geological and resulting processing conditions of the Matilda / Wiluna operation compared to previous owners. This understanding is expressed primarily by means of exploration and the targeted mining activity in order to provide the service of the repaired and extended processing plant. What steps does Blackham Resources take to ensure long-term profitable operations on Wiluna?
Bryan Dixon: The main difference is that we have brought the large number of individual projects close to the Wiluna processing plant under the control of a single company. In addition, we initially opted for opencast mining operations for the cost-effective development of ore. Previous owners had mostly focused on underground mining, and at the same time tried to supply a large processing plant. Due to a variety of reasons, they failed and they were forced to pursue high-grade gold mineralization, which in turn meant that the targets for tonnage were missed. As a result, correspondingly high gold prices were required, which ultimately led to the failure of companies due to a lack of the basic conditions.
To open up the sulphides as ore will enable us to achieve a production of more than 200,000 ounces of gold per year, with the combination of opencast mining and underground mining ensuring the constant supply of ore with ore
Miningscout: The decline in the share price may have discouraged or frustrated some investors or shareholders. However, given the current share price and the performance of the price do not necessarily reflect the true value of the company as well as past performance and the potential to be expected in the future, perhaps you would like to put a few words or thoughts to these people to your point of view The current situation.
Bryan Dixon: We understand that both the project and the company have to deliver results on a stable level over a long period of time in order to regain the confidence of the community of investors. Some investors may also be unsettled by the Wiluna's history, but we are overruled that our approach is significantly different than previous operations. We believe that our approach minimizes the risk of the project and maximizes the potential gain in shareholder value. Only a very small number of projects with a long lead time, good holdings, a planned output of more than 200,000 ounces of gold per year exist in a single company with the size and market capitalization of Blackham Resources. In addition, there is further potential for growth in the project - whether it is in terms of resources, content or production volume.
At the moment, however, investors are looking for reliable and consistent production, which is why management is also focusing on these areas. As long as we are able to meet these requirements and expectations on a sustained and sustained basis, investors and investors will also concentrate on the growth opportunities mentioned above. At this time, long-term investors will be able to exploit the upside potential of their investments.
