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Blackham Resources' Gold Hits Provide Catalyst For Confidence Upgrade At Matilda

Blackham Resources (ASX: BLK) current drilling at the M4 deposit is expected to assist in raising the resource confidence in this area to Indicated from Inferred as well as extend mineralisation at depth.

The drilling was targeted at infilling and extending the Matilda Gold Project resource beyond the current northern pit boundary.

Significant intercepts from the first holes include:
- 31 metres at 2.32 grams per tonne (g/t) gold from 120 metres;
- 16 metres at 1.6g/t gold from 161 metres;
- 8 metres at 3.25g/t gold from 85 metres; and
- 8 metres at 2.13g/t gold from 103 metres.

These intercepts are from the base of the existing resource model.

The drill rig has now moved to the M1 pit to test for extensions of mineralisation beneath the current pit floor, prior to moving back to M3 and M4

Further results are expected over the coming weeks.

Initial results from Blackham's scoping level metallurgy testwork program at the Matilda Gold Project shows an 87% average recovery from combined gravity and leaching test work on six composite samples from a range of ore types.

This did not include activated carbon which is expected to further improve recoveries.

The company has also begun Mining Studies of the Matilda Mine with initial testwork as well as historical production and processing data providing confidence that it is technically feasible for a conventional gravity/CIL plant to process all types of Matilda and Williamson ore plus the oxide and transitional ore from the Regent deposit.

Blackham is also focused on completing a Scoping Study of the various options for development of the Matilda Gold Project with the recent resource upgrade to greater than 1 million ounces it the critical mass to reconsider putting a plant back at the Matilda Mine site.

The Scoping study is expected to be finalised by the end of October.

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