Drilling may lead to resource upgrade: BLK
Blackham Resources (ASX:BLK) says a recent infill drilling campaign may lead to a resources upgrade, while it has discovered a new lode at a key pit.
The near-term gold producer told its shareholders today that a 19 reverse-circulation drilling program centering on the western flank of the Williamson pit effectively firmed up a new high-grade footwall zone.
BLK also completed five diamond core holes as part of the program.
The new lode discovery could improve the economics of the pit, as the newly-discovered lode extends into an existing pit design area.
Results from the drilling included hits of 2m @ 95.14g/t from 33m and 1.45m @5.73g/t from 70m, which effectively adds a new high-grade lode to the Williamson pit.
Meanwhile, BLK said the drilling program also infilled southern extensions of the Williamson resource, and that the drilling would “likely” support a moving of some resources from the indicated category to the inferred category.
At the moment the pit has an indicated resource of 2.7Mt @ 1.7g/t for 150,000 ounces of gold, but it is believed this does not include the southern extension tested by the drillbit.
The drilling will give BLK greater confidence to the Williamson resource, which is being seen as a source of free milling inventory needed to get the re-opening of the Wiluna Gold Plant happening in 2016.
While the overall grade of the Williamson resource is somewhat modest at 6.3Mt @ 1.7g/t for 350,000/oz, the large tonnage of the resource is seen as a key development target for ensuring a good base load supply into the plant.
BLK also said the Williamson mineralisation extends 1.3km further south, indicating further exploration upside in the wings.
Historical aircore intercepts from the extension include 4m @ 12.2g/t from 56m, 19m @ 14.2g/t from 60m, and 20m @ 3.2g/t from 16m among others.
A definitive feasibility study for the project is expected back by January next year.
BLK is planning to bring gold from the Matilda Gold Project from the Northern Yilgarn region in Western Australia into production using the existing, but mothballed, Wiluna Gold Plant.
The aim is to start producing gold in the second quarter of next year, with the first stage of production to utilise soft oxide and free milling, using the existing resources at the Matilda Mine, with additional gold ores coming from the high grade reefs like Golden Age, Galaxy and Caledonia.
The overall project has a total measured, indicated, and inferred resource of 44 million tonnes of gold at an average grade of 3.3 grams per tonne for a total of 4.6 million ounces of gold. However, measured and indicated make up 20Mt @ 3.5g/t for 2.3Moz of this.