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Blackham Resources hits up to 43.3 g/t gold at Matilda

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Blackham Resources (ASX: BLK) has released first results from drilling at the Galaxy Deposit within its Matilda Gold Project in Western Australia and they were impressive.

Numerous high-grade results were returned, including a stand-out result of 4 metres at 19.6 grams per tonne from 37 metres, including 1 metre at 43.3 g/t from 37 metres. 

Other results of note are 2 metres at 9.58 g/t from 15 metres, and 2 metres at 12 g/t from 9 metres. 

These widths and grades are consistent with historical drilling such as 4 metres 11.5 g/t from 56 metres, and in WR02305, 4 metres at 12.3 g/t from 6 metres.  

This is the first drilling completed by Blackham at Galaxy, which has an existing resource of 52,000 gold ounces, and further drilling is clearly warranted to delineate high-grade zones

The program was designed to test potential near-surface extensions of mineralisation at Galaxy as well as potential new resource areas at Mentelle and Matilda.

Assays have been received for the first 16 holes drilled at Galaxy, with additional results expected from Mentelle and Matilda in the coming weeks.

Importantly, mineralisation intersected in hole 11 is outside the current resource, but inside the pit optimisation area, demonstrating potential for new lodes and significantly improving mining economics.

Mineralisation at Galaxy is characterised by quartz veins in a basalt host, and multiple vein orientations have been recognised. 

These veins were exploited by artisanal miners during the early 1900’s, supporting Blackham’s belief that gold occurs as free-milling, coarse grains that are not tied up in refractory sulphides. 

The weathering profile extends to around 50 metres below surface, and most of the mineralised intercepts from this program are in oxidised material.

The Galaxy Deposit is a modest sized resource, although strategically important due to its high-grade and expression at surface. 

Blackham envisages future drilling to explore for new lodes as well as infill drilling to facilitate a new estimate with a higher degree of confidence. 

Blackham’s total resource inventory within the broader Matilda Gold Project is currently 24 million tonnes at 1.9 g/t for 1.4 million ounces.

Wiluna

Yesterday, the company finalised its Wiluna plant and infrastructure acquisition, which is worth around $150 million.

The consolidated Matilda and Wiluna Gold Project synergies include a JORC Resource of 40 million tonnes at 3.3g/t gold for 4.3 million ounces, with a land holding of 780 square kilometres and 55 kilometres of mine strike.

Additional infrastructure includes permitted borefields, a 350 person accommodation village, established sealed airstrip and roads, approvals and licenses.

Blackham will continue to focus on free-milling, open-pit and shallow underground targets from Matilda.

Highlighting the prospectivity of the area, the Wiluna Mine has historically produced 4 million ounces over 100 years within an area of only 4 square kilometres.

Analysis

Blackham has a strong value proposition at its current cap of $23.5 million.

With 4.3 million ounces of gold to its name, $150 million worth of infrastructure, and substantial coal and nickel assets at Zanthus in the Fraser Range Region, it is worth following.

 

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.

Quick facts: Wiluna Mining Corporation Ltd

Price: 1.05 AUD

ASX:WMX
Market: ASX
Market Cap: $124.68 m
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