BLK to turbo-boost resource after $25M raising

Published at Aug 19, 2016, in Mining

Blackham Resources (ASX:BLK) has grabbed $25 million from a placement to turbo-boost expansion of its Matilda gold project to a possible 9 million ounces of gold.

Coming out of a trading halt, it told its investors that it had managed to raise $25 million through the placement of 25 million shares at $1 each, an offer which reportedly received strong institutional support.

The cash will go towards expanding the oxide and free milling reserves of the project, as well as excpanding the sulphide open pit and underground mine plan and reserves through drilling.

BLK managing director Bryan Dixon said the funding would go towards drilling, but also “fast tracking” of a plant expansion study on the project which “has a gold endowment greater than 9Moz”.

The project currently has a reserve of 5.1Moz.

The cash raise for increased drilling comes on the back of a number of resource extensions in recent months as the company moves ever close to first production.

It said this morning that the project would be producing within three weeks.

This is an estimated timeframe and should not be used as a basis for an investment decision. Seek professional financial advice for further information.

The latest set of drilling results came just three days ago, with BLK saying drilling at the Bulletin pit included hits of 15.6m @ 7.5 grams per tonne gold, and 6m @ 24g/t Au.

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.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

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