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WuShan is a developed, pre-production thermal coal mine about 20 kilometres from Blackgold’s existing operations. The mine contains five existing production adits together with ventilation and access shafts and ancillary infrastructure, including power, piped water, access roads and buildings.
The mine is located close to its river port loading facilities and has historically supplied small quantities of thermal coal. Blackgold anticipates commercial production beginning immediately after machinery and equipment are installed and commissioned, and expects this will occur within four months of the acquisition being finalised.
Blackgold chief executive Yu Guo Peng said the company intended to undertake an evaluation of WuShan as soon as possible to have the mine’s resource data conform to the Joint Ore Reserves Committee Code.
“Ensuring WuShan’s resources are assessed in accordance with the JORC Code is very important to Blackgold,” he said. “We made the decision to list on the ASX because we wanted to demonstrate that Blackgold is a quality company, and having the resource conform with the JORC Code is part of this process.
“Blackgold has been operating the Caotang mine for over 12 years and based on this experience, we are satisfied on understanding and the interpretation of the People’s Republic of China geological data to enter into the heads of agreement to acquire WuShan.
“However, we recognise the importance of complying with the JORC Code, and will move promptly to achieve this.”
Blackgold has entered into an HoA to buy a 100% stake in Chongqing Yihua Mining, the owner of the WuShan mine. The acquisition is subject to satisfactory due diligence being completed, as well as the execution of a final agreement in accordance with Chinese law and securing the necessary approvals from the relevant Chinese authorities.
Blackgold chairman James Tong said the WuShan acquisition was in line with the company’s expansion plans and should significantly increase Blackgold’s annual coal production volume in the near term as well as its JORC assessed resources.
