Adam Kiley

Blackham is on track to become the only new significant gold producer (+100koz) in Australia during 2016. The DFS confirmed the Project's robust economics and minimal initial capital requirement ($32m) for a project of this size and scale. We believe that limited additional capital will be required given the existing debt facility ($23m available) and Blackham's current cash position ($9.5m cash & investments). We see further upside in the mine life (TSI assumption - 9yrs or 945koz) from both open pit and underground sources given recent exploration success and the on-going program, as well as the potential to improve the underground mine grade further (4.9 g/t DFS vs. 5.6g/t TSI vs. 9g/t historical production).


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