TIDMPOL
RNS Number : 2822B
Polo Resources Limited
03 April 2017
3 April 2017
Polo Resources Limited
("Polo" or the "Company")
BLACKHAM RESOURCES - INVESTMENT UPDATE
Polo Resources Limited (AIM: POL), the multi-sector investment
company with interests in oil, gold, coal, copper, phosphate,
lithium, iron and vanadium, notes that its investee company,
Blackham Resources Limited ("Blackham") (ASX: BLK) has provided an
update on recent events associated with its Matilda/Wiluna gold
production activities.
Blackham's announcement has been substantially reproduced below.
The full details of the announcement which includes informative
graphics can be found at www.blackhamresources.com.
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
For further information, please contact:
Polo Resources Limited
Kudzayi Denenga, Investor
Relations ++27 (0) 787 312 919
ZAI Corporate Finance Ltd
(nominated adviser)
Ray Zimmerman, John Treacy ++44 (0) 20 7060 2220
Liberum Capital (broker)
Henry Freeman ++44 (0) 20 3100 2000
Blytheweigh (public relations)
Tim Blythe, Nick Elwes, Camilla
Horsfall ++44 (0) 207 138 3204
About the Company
Polo Resources Limited is a multi-sector investment company
focused on investing in undervalued companies and projects with
strong fundamentals and attractive growth prospects. For complete
details on Polo, please refer to: www.poloresources.com.
Matilda/Wiluna Operations Update
Blackham Resources Ltd (ASX: BLK) ("Blackham") wishes to provide
an update on recent events associated with its Matilda/Wiluna gold
production activities.
Gold Production
Gold production for the March 2017 quarter was 15,428oz*
(8,773oz Dec16 Qtr) (*interim unreconciled). Significant
improvements in crusher and mill performance where seen during the
quarter, however lower grade profile resulted in lower than
forecast production.
Blackham has revised down its production guidance for the period
ended 30 June 2017 due to the impact of heavy rainfall and lower
mill grades to its Matilda/Wiluna Gold Operation. Forecast
production in the period is now expected to be in the vicinity of
43,000 to 52,000 ounces for the financial year ending 30 June 2017,
being just over eight months. Gold production for the June 2017
quarter is expected to improve significantly due to both higher
tonnes processed and high grade profile out of the open pits.
Open Pit Mining
Since Blackham declared commercial production in January 2017,
the site has received 265mm of rain compared to 110mm historical
average for the quarter. Total rainfall in March has been four
times the historical March average. The heaviest rainfall was
experienced from 22(nd) to 25(th) March 2017 when 140 mm fell in
four days. Open pit mining during the quarter lost 26 days
including 15 days lost towards the end of March. All the Matilda
open pits have experienced slow dig rates due to the wet conditions
significantly reducing the total material and ore mined,
particularly during March.
Mining in the Matilda M3 and M4 pits recommenced on the 28(th)
March following a full safety assessment. Road sheeting and ramp
maintenance was completed to allow re-access to the M3 and M4 pits.
No ore has been sterilized as a result of the rainfall. Open pit
mining at the higher grade Galaxy pit is due to start in the first
week of April, one month behind schedule due to the slow mining
rates at the Matilda pits.
Lower tonnes of ore mined, as well as grade profile being fed to
the mill has resulted in lower grade ore being processed. Lower
mined material, BCM's, will significantly reduce total mining costs
for the quarter.
Underground Mining
Significantly less underground ore was extracted from the Golden
Age underground than forecast during the quarter. Both development
and stope tonnes and ounces were lower than forecast and stoping
production has taken longer to ramp up. Ongoing development work
and grade control drilling has allowed for a greater understanding
of the Golden Age orebody resulting in a more conservative forecast
of gold production from the upper portions of Golden Age. The
mining schedule is being amended and revised mine plans will be
updated over the coming weeks. A drill programme has commenced
between the 840 - 1,000RL's with a view to bringing more ore into
the mine plan.
Gold Processing
Crushing circuit - Crushing circuit utilisation in the March
quarter improved to 69% (65% Dec 2016 Qtr). The crushing circuit
during March (prior to the 22nd March rainfall event) operated at
72% utilization and averaged 5,110 wet tonnes per day being 98% of
design. The heavy rainfall significantly affect the performance of
the crushing circuit for a number of days. The crushing circuit has
operated at up to 7,000 wet tpd during March. The crushing circuit
operated at nameplate production for 6 weeks prior to the weather
impacts (see the Crushing Throughput and Crushing Rate graphs in
Blackham's full announcement).
Grinding Circuit - Milled throughput has improved every month
since commissioning. In the six weeks prior to the rain event, the
grinding circuit has operated at an average throughput rate of
4,800 tonnes per day being 103% of nameplate design with a maximum
up to 5,800tpd. Weather impact on the crushing circuit limited fine
ore supply as seen in the above Grinding Throughput and Grinding
Rate graphs. The mills are now back milling above nameplate
capacity. Management are targeting milling throughput to 2.0Mtpa -
15% above nameplate capacity which has not yet been built into
forecast production.
Grade Profile - Grade profile has been ramping up but has been
hampered by wet weather and pit conditions and slower mining in
both the open pits and underground. The open pit feed grade profile
was affected by more lower grade being processed combined with slow
mining rates and wet conditions adding to dilution. The reduced
development and stoping tonnes coming out of the underground
significantly affected average grade profile for the quarter. Mill
feed grades are expected to increase significantly during the June
quarter due to higher open pit ore grades.
Leach, Elution Circuits and Gold Room - The leach circuit is
working very well and total plant recoveries have been strong
(93-95%) during the quarter. March production was impacted by a
small fire in the gold room which has destroyed two of the three
electrowinning cells on 27(th) March 2017. The fire event damage
repair cost is not expected to be significant. The third
electrowinning cell was back on line on the 30(th) March 2017.
Management have formulated a plan to have the full elution circuit
and gold room back on line within two to three weeks. The impact of
the fire is not expected to significantly affect production during
April.
Expansion Plans for +200,000ozpa Gold Production
The initial Expansion Study has been delayed slightly whilst
management focus on operations. All mining designs have been
completed. The initial expansion study is close to being finalised
and is expected to be released in the near future. The initial
study will set the parameters for the sizing, scope, mining and
engineering for the Definitive Expansion Study due later this year.
Blackham has completed 37,000m of a 50,000m infill and extension
drilling programme around the Wiluna open pits with a view to
defining the reserves for the Definitive Expansion Study.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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