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Blackham Resources Raises $1.1m To Step Up Exploration At 1.4MOZ Matilda Gold Project

Blackham Resources (ASX:BLK) has secured $1.1 million in funds to progress the exploration program at its 100%-owned Matilda Gold Project.

Matilda has a current 1.4 million ounces of JORC compliant gold resources.

Blackham will issue 5,800,000 ordinary shares at $0.19 per share to professional and sophisticated investors and a separate disclosure document is not required. Approval for the Placement was given in its general meeting of the 29 June 2012.

The lead manager of the placement was Paradigm Securities.

Blackham's Managing Director, Bryan Dixon, stated, "The Placement will allow Blackham to fund further infill and extension drilling, complete a scoping study and begin its critical path feasibility work at the Matilda Mine.


Blackham has a tight capital structure with a market cap of around $10 Million, which places it at just $10/oz of gold resource which is significantly undervalued relative to its peer average. There is also an Exploration Target of 0.5 to 2Moz at Matilda which current drilling could increase current resource.

As importantly, Blackham has alternatives to become a producer in the short term now it has a critical mass of gold resources.

Options include: processing ore through Wiluna Gold Plant: with a low capital cost, near term development option, all deposits and stockpiles within 26km of WGP by existing haul roads.

Or, the use of a mobile plant at Matilda Mine (350 to 500ktpa). Another option could be to acquire a second hand plant (which are potentially available) (0.6 to 1Mtpa) which would allow higher throughput and production.

Blackham is one to watch as an undervaluation on resource base could conceivably become even more appealing if it moves toward early production at Matilda.

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