BLK firms up resource extension numbers as production nears

Published at Jul 19, 2016, in Mining

Blackham Resources (ASX:BLK) has finished the drilling which could inform a resources upgrade – saying the final results were “outstanding”.

The soon-to-be gold miner has told its shareholders that it is done and dusted with a program to test a possible extension of the Wiluna pit at its Matilda Gold Project.

The latest results from key extension targets included:

12m @ 7.52g/t Au from 147m; 5m @ 13.7g/t Au from 191m and; 8m @ 3.44g/t Au from 48m.

All up it drilled 17 reverse circulation holes, targeting extensions of the project’s main Wiluna pit including the Squib, West Lode, and Happy Jack deposits.

Open pit mining stopped at Wiluna during the 1990s, in order to focus on deeper high grade mineralisation – meaning that there was a potential ‘remnant’ mineralisation nearer to surface which went unexplored.

The higher gold price, however, has allowed BLK to investigate the possible extensions to the main pit – possibly to add to the main pit’s resource.

Follow-up drilling is being planned, and it is thought these new results will be folded into ongoing pit studies aimed at extending the life of the Matilda project.

There is no guarantee that the new results will add substantively to the life of the project, and BLK remains a speculative stock.

Given the areas tested were within 150m of the existing pit, BLK told its shareholders that it was hopeful that extensions could “rapidly” converted to resources.

Extensions to the Wiluna pit

Extensions to the Wiluna pit

About the Matilda project

BLK is gearing up for production from the historic Matilda gone mine in the third quarter of this year.

The Tailings Storage Facility contractor have begun works on site, with Matilda open pit and underground mining contractors also mobilised to the site.

The Matilda Gold Project has a resource of 48Mt @ 3.3g/t for 5.1Moz (51% indicated) of resource.

BLKs Matilda Gold Project is within 25km of its 100% owned Wiluna gold plant, which is targeted for over 100,000oz gold production per annum from 1.7Mt of throughput.

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