Blackham Resources (ASX:BLK) has recommenced reverse circulation drilling at the Matilda Gold Project in Western Australia to increase resources within open pit limits at the Galaxy deposit and Matilda Mine.
This is in line with its focus on free-milling gold targets and resources within open pit or shallow underground depths and in close proximity to the WGP plant and infrastructure.
The 2,200 metre drill program will test further extensions to the Galaxy deposit, the M1 West and Central lode extensions at the Matilda Mine as well as the M4 north extensions also at Matilda Mine.
Drilling at Galaxy and Matilda is designed to follow up on successful previous intercepts by testing the extensions of these down plunge with the aim of increasing the resources within open pit limits at both sites.
Blackham will also test quartz reef targets within the Wiluna Mine area that could result in the discovery of new open pit or shallow underground deposits.
In addition, the drilling contractor has agreed to a 50% payment of the consideration in shares in the company priced at $0.21c each.
Drilling in May had delivered some outstanding results from Galaxy, including the best ever drill intercept of 9 metres at 13.4 grams per tonne gold from 73 metres.
The mineralisation is at the base of the optimised pit and remains open.
In addition, the intercepts are located both inside and outside current resource envelope, providing both improved resource confidence and extensions.
Blackham is targeting near term cash flow from the Wiluna Gold Plant, which has capacity of 1.1 - 1.5 Mtpa and is able to treat oxide ores for production of 80,000-100,000 ounces of gold annually.
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