PERTH (miningweekly.com) – ASX-listed gold miner Blackham Resources has inked a sales contract with Russian gold miner Polymetal International over all the non-committed gold concentrate from Blackham’s Stage 1 expansion project of its Western Australian operations.
The Stage 1 production rates are expected to average some 110 000 oz/y from 2022 to 2027, and would underpin Blackham’s pathway to a more than 200 000 oz/y producer following a Stage 2 expansion.
The sales contract would span over a three-year period and would account for 70% of the Stage 1 expansion project, or 122 500 t of gold concentrate over this period.
The two companies have also struck a strategic alliance for gold concentrate project development, under which they would establish a process of two-way technical and market data exchange on the potential expansion of Wiluna gold concentrate production and sales.
Over the long term, Polymetal would also be appointed as an agent for all of the Wiluna concentrate, providing concentrate market and pricing visibility to Blackham, while the two companies would also work cooperatively to investigate joint development opportunities from other sulphide deposits in Western Australia.
Blackham’s executive chairperson Milan Jerkovic said on Tuesday that establishing a relationship with Polymetal for the sale of all non-committed portions of the Stage 1 gold concentrate was a significant milestone for Blackham to deliver Stage 1.
“And then entering into an ongoing alliance agreement with a significant global counterparty such as Polymetal, provides a technical and strategic parthway for the company’s vision to develop its sulphide deposits. Longer term, this will enable the company to expand its production from Wiluna and consider other regional opportunities,” Jerkovic said.