Blackham Resources Ltd (ASX:BLK) has received high grade gold assays from its drill program testing extensions to the underground Golden Age deposit within the Matilda Gold Project in Western Australia.
Highlights include 1.9 metres at 38.6 g/t gold including 0.9 metres at 80.6 g/t gold.
This program is likely to yield a JORC Reserve increase for this portion of Golden Age.
Golden Age is located within the 100% owned 5.1 million ounce Matilda Gold Project.
Bryan Dixon, managing director, commented: “The latest Golden Age drilling is likely to add further grade profile to the mill feed during the first 2 years of production. “
Golden Age drill results
A total of 39 holes for 2726.5 metres have been drilled to identify additional resources at the Golden Age deposit.
Results indicate that additional high grade ore exists between and along strike from existing stopes with better results including:
- 1.9 metres at 38.6 g/t gold from 48 metres including 0.9 metres at 80.6 g/t gold;
- 3.7 metres at 17.1 g/t gold from 41 metres including 1.0 metre at 28.8 g/t gold;
- 1.9 metre at 12.9 g/t gold from 46.2 metres;
- 2.0 metres at 13.4 g/t gold from 47.2 metres including 1.0 metre at 25.6 g/t gold;
- 2.7 metres at 8.63 g/t gold from 59.0 metres including 2.0 metres at 11.3g/t; and
- 1.3 metres at 8.29 g/t gold from 52 metres including 0.6 metres at 23.7 g/t.
Golden Age is a high-grade, free milling, quartz hosted ore body.
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.
With open pit mining now commenced and underground mining to begin shortly, Blackham remains on track for first gold production during the September quarter.
Matilda gold production is targeted within 2 weeks with the following recent site updates:
- Matilda open pit mining is into ore;
- Crushing circuit has been energised;
- Mills are mechanically complete and relining has commenced;
- Leach tank wet commissioning expected later this month;
- New tailings dam commissioning in August;
- Power station has been commissioned; and
- 290 room camp fully operational.
These drill results are beneficial to project economics as the mineralisation intersected is easily accessible and is just above the existing Golden Age reserves where mining activities commenced in July.
The mining study over this new area is being prioritised.
The recent operations update from the Matilda Gold Project shows that Blackham remain on schedule to pour its first gold bar.
Production timing for Blackham is fortuitous with the AUD gold price continuing to trade strongly, currently at A$1,755 per ounce.
An expansion study is underway aiming to grow annual gold production to 175,000-235,000 ounces of gold and better monetise the large resource.
Blackham has a strong financial position having recently raised $25 million through a share placement.
Shares in Blackham are up over 330% year to date, currently trading at an all-time high of $0.99 per share.
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