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Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
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  • Blackham Resources Receives $1.35 Price Target From Sydney Broker 0 comments
    Apr 23, 2014 8:00 PM

    Blackham Resources (ASX: BLK) is reinvigorating the Wiluna gold belt, and the company has received a $1.35 one-year price target from Sydney broker Paradigm Securities.

    The company last traded at $0.23, with the target close to six-times the current value.

    Blackham has a resource base of over 4moz and has recently acquired the Wiluna mill to upgrade and operate as a hub to treat non refractory ore from several mostly open cut gold deposits in the region.

    Exploration along a strike of more than 40km is open along strike and at depth in a gold region that already has several mines down to 1000m.

    The following is an extract from the report.

    SUMMARY

    Blackham Resources is re-establishing gold mining operations in the Wiluna Gold Belt in the northern extremities of the Lawlers -Wiluna Band of the Yilgarn Achaean Greenstone Belt in Western Australia.

    The region has a gold endowment of over 35moz and is relatively under explored.

    KEY POINTS

    - 1-Year Price Target: $1.35
    - Wiluna plant acquisition is game changer for Blackham
    - Transforming from developer to near term producer
    - Target of >80kozpa in Dec Half 2015 then >90kozpa
    - Low capital costs and attractive op costs - Current M&I resources are 16Mt @3.8g/t for 2.0Moz
    - Total resource base of >4moz
    - Regional exploration potential is high
    - Base case NPV8 of A$136m(A$0.96) @A$1500/oz fully diluted)

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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