Blackham Resources says it is poised to double gold production at the Matilda/Wiluna gold operation in WA.

A preliminary expansion study has found that a staged expansion of Matilda/Wiluna would allow it to treat both oxide and sulphide ores.

The company says that using a low-risk staged approach to development and capex over 18-months would allow it to ramp up gold production to over 200,000 ounces a year (oz/y) by the 2020 financial year, from the current production capacity of around 98,000oz/y.

Blackham says it will be possible by integrating the Wiluna sulphides with the current free milling ore at the operation.

The company’s proposed expansion would include the refurbishment of the current sulphide treatment plant, the construction of a new float and carbon-in-leach circuits, and then a second phase including the construction of a new crushing and grinding circuit, increasing throughput by about 1.5 million tonnes per annum (Mtpa).

“The preliminary expansion study has confirmed gold production of 200,000oz/y is achievable on a very capital efficient basis and is likely to be a long mine life,” Blackham managing director Bryan Dixon said.

“By undertaking a staged development approach the company expects to maintain a strong balance sheet during Stage 2A refurbishment and construction plus on the completion of Stage 2B run the sulphide and oxide circuits in parallel providing one of Western Australian’s most flexible gold processing facilities.”

Blackham fired up production at Matilda/Wiluna late last year, based on a 6.4Moz gold resource located within a 20km radius of the Wiluna processing plant.