The latest high grade gold find comes from beneath the existing M1 pit and demonstrates the underground potential at M1.
Significant intercepts from the M1 Central Lode include 35 metres at 5.05 g/t gold from 114 metres including 12 metres at 9.13g/t from 134 metres; 21 metres at 2.57g/t from 184 metres; 9 metres at 2.59 g/t gold from 124 metres and 11metres at 2.13 g/t gold.
The recent hit comes close on the heels of the company upgrading its resource at the Williamson resource and placing 147,000 ounces of contained gold resource in the indicated category.
Blackham's resource inventory at the Matilda gold project is currently 25 million tonnes at 1.9 g/t for 1.5 million ounces of gold.
Bryan Dixon, Blackham's managing director said, "The current drilling results from the Central Lode demonstrates the underground potential within this lode even though it is still shallow enough to open pit mine.
"We are also keen to follow up on some of the high grade intercepts in the M1 Western and Eastern lodes," he said.
The latest drilling tests targeted the "Central lode" at M1 immediately below the existing pit floor, where previous historic drilling had failed to fully test the lode position.
The M1 is characterised by mineralisation in an anticline structure bounded by planar shears. High-grade mineralisation occurs in the hinge of the Central Lode anticline with thick, medium-grade mineralisation occurring in the limbs.
The intercept of 35m at 5.05 g/t was made inside an optimal proposed pit based on last year's scoping study and results indicated that it could improve the open pit mining economics.
The higher grade intercept of 12 metres at 9.13g/t also highlights the potential for M1 to host a high grade underground mine, which is also supported by historical test results.
These include 29 metres at 4.52g/t gold from 96 metres; 19 metres at 6.9g/t from 86 metes and 11 metres at 5.18g/t, among others.
Blackham plans to prioritise further drilling into the M1 central anticline zone.
It recently got a funding package of $13.32 million, that included a placement done at a 37% premium with a private company controlled by leading mining industry entrepreneur Joseph Gutnick.
It received the first tranche of $2.31 million from the funding in February, while the second tranche will be done after shareholder approval at the general meeting scheduled for the 6 June 2013.
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