With these new results the company plans to immediately update the resource model and begin planning a follow up program.
A 3,200 metre infill and extension reverse circulation program has produced notable intercepts of 10 metres at 5.47 grams per tonne (g/t) from 120 metres, including 2 metres at 12.4g/t; and 5 metres at 5.3g/t from 125 metres, including 1 metre at 20.4g/t.
These results have extended mineralisation about 50 metres down dip.
Together with the earlier reported intercept of 31 metres at 2.32g/t, Blackham has identified a gently plunging, high-grade shoot with a strike of about 200 metres that remains open at depth.
Many of the holes from this program returned thicker and higher tenor results than intercepted by previous explorers closer to surface, possibly indicating depletion zones in the weathered profile.
Resource model update
Blackham will update the resource model to determine what effect the new results may have on the open-pit mining economics.
The high grade nature of these results may also support an underground mining operation which will be investigated in due course.
The Matilda Gold Project resource currently stands at 23 million tonnes at 1.9g/t for 1.4 million ounces of gold, which includes 12 million tonnes at 1.7g/t for 683,000 ounces of gold at the Matilda Mining Centre.
Final results have also been received from the M1 and M3 deposits, which support the resource model and interpretation.
An encouraging result of 12 metres at 1.35g/t gold from the M3 Deposit has confirmed the geological interpretation north of M3 and should provide an upgrade of resource confidence in this area as well as have a positive effect on mining economics.
Further drilling is required to test the full resource potential.
Likewise, a result of 2 metres at 5.01g/t gold at the Eastern Lode of M1 has confirmed the continuity of this lode.
Gold processing plant
Blackham recently engaged Resource Development Group subsidiary Pacer Corporation to provide a cost estimate for the design and construction of a gold processing plant at the historically operational Matilda mine site.
In its assessment, Pacer will also consider the cost benefit options of utilising second hand equipment.
The scope of works will allow for a run of mine area, crushing and screening circuit, milling cyclone and gravity circuit, carbon in leach, elution circuit and goldroom, process water and tailings, plant control, power and transmission lines and finally plant maintenance and administration.
Blackham is looking at bringing the Matilda Gold Project into operation in 2014.
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