Galaxy shines a little bit brighter for BLK
Blackham Resources (ASX:BLK) says high-grade drilling results at its Matilda Gold Project will be folded into a definitive feasibility study of the project due back sooner rather than later.
The ASX-listed gold play told investors today that it had drilled 26 RC holes into the Galaxy deposit at the project, one of the deposits flagged to provide initial feed for its planned Wiluna Gold Plant, at this stage due for start-up in the second quarter of next year.
The intercepts included hits of: 12m @ 4.57 grams per tonne from 83m; 10m @ 4.52g/t from 82m and; 10m @ 2.54 g/t from 82m among others.
It also completed three diamond holes for 188.5m, with hits including 10m @ 4.52g/t from 82m, 5m @ 6.63g/t from 18.5m.
These results did not inform a recent pre-feasibilty study, and will be folded into a DFS due soon.
According to its gold resource statement, the Galaxy deposit has an average grade of 2.9 g/t over its indicated and inferred resources.
Better yet, the location of the holes meant Blackham was able to firm up targets outside of the Galaxy pit design included in the PFS.
“Blackham’s recent Pre-Feasibility Study confirmed the economics of the Galaxy deposit as a high grade shallow deposit suitable for open pit mining with good metallurgicval recoveries,” BLK managing director Bryan Dixon said.
“The latest drilling provides further confidence within the Galaxy pit and located further high grade mineralisation outside the PFS pit design.”
In other BLK news, it also confirmed it was finalising plans to drill into the Caledonia pit for the first time in an effort to firm up longer-timeframe resources for the Wiluna plant.
Shares in BLK were up slightly in mid-day trading, up 2.2% to 23c.
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.
Want to know more about BLK?
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). 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.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.