Production and profits increasing - the renovation of The Wiluna Mining Camp is underway.
Highlights
Stage 1 growth to > 100,000 ounces creates +$300 million value.
Resources grew to ~7 million ounces, reserve update due Jan 21
Stage 2 growth to > 200,000 ounces pa add potential +$600 million
Exploration success the key to growth
Wiluna Mining Corporation has set a blistering pace in 2020 renovating Australia’s 7th largest gold camp with resources now greater than 7 million ounces. Reserves of at least 800,000 ounces at 4.7gpt are expected in January of 2021 underpinning Stage 1 annual production of 100,000 ounces at All In Sustaining Costs (AISC) of A$1620/ounce. The company has stabilised its current free milling operations so they are reliably producing 15,000 ounces per quarter and A$4 million operating cashflow per month which along with current cash of A$11 million and an expected A$40 million loan from Mercuria fully fund Stage 1 production capital expenditure of A$81 million. Arlington mo
of A$319 million with annual cashflow of A$80 million. Wiluna is planning to complete studies for Stage 2 in 2021. Arlington model an additional A$130 million of capital spend for total annual production of 200,000 ounces at A$1600/oz AISC adding A$673 million of NPV and doubling annual cashflow to A$160 million. Exploration success will continue to be the main game for Wiluna shareholders following up impressive drill results in 2020 like 10.84 metres at 29.39gpt announced on October 27th next to existing Wiluna mine infrastructure. Arlington believes it is only a matter of time and drilling dollars invested until Wiluna adds reserve and resources consistent with Wiluna’s 3 million sulphide ounces mined at 7gpt. The average historical mined sulphide grade of Wiluna at 7gpt is significantly higher than current reserve and resource inventory. Let the drill bit do the talking.
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