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Blackham Resources Ltd commences mining at 5.1M ounce Matilda Gold Project

Published: 20:00 19 Jul 2016 EDT

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Blackham Resources Ltd (ASX:BLK) is well on its way to becoming Australia’s next 100,000 ounces per year gold producer as it commences mining at its Matilda Gold Project.

Open pit mining contractor, MACA Ltd (ASX:MLD) has commenced mining operations at the Matilda M10 open pit.

Pybar Mining Services Ltd has also commenced underground development at the high grade Golden Age orebody.

Blackham remains on track for first gold production during the September quarter. Commissioning of the Wiluna plant is on track to begin in August.

Bryan Dixon, managing director, commented:

“The commencement of mining represents another significant milestone in the company’s transition from gold explorer to producer at a time of record Australian gold prices.”


Matilda Gold Project


All 5.1 million ounces of gold in the 860 square kilometre Matilda Gold Project are within a 20 kilometre radius of the company owned Wiluna gold plant.

The Wiluna gold plant, which operated up until 2013 can process up to 100,000 ounces per annum.

The final environmental, mining and water approvals are in place at the Matilda project, which have unlocked a $23 million funding facility provided by Orion Mine Finance.

With open pit mining now commenced and underground mining to begin shortly, Blackham remains on track for first gold production during the September quarter.


District Exploration

Blackham’s exploration strategy is to test the full 10 kilometre long strike extent of the Matilda shear zone to identify further 1 million ounce deposits.

Historical drilling intercepts up to 4 kilometres along strike from the mine include 4 metres at 13.9 g/t gold and 6 metres at 13.9 g/t gold.

To assist with target definition, an induced polarisation (IP) survey has commenced with final results and modelling of the data expected in August.

A number of recently completed drill programs have already provided evidence of additional gold mineralisation showing both underground and open pit mining potential.


Analysis

The commencement of open pit mining, on time, is another key milestone for Blackham as it aims to pour its first gold bar in the September quarter.

Production timing for Blackham is fortuitous with the AUD gold price climbing past A$1,775 per ounce today.

Shares in Blackham are up over 260% year to date, currently trading at $0.83 per share.

 

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