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Blackham Resources Defines New Gold Zone At Matilda

Blackham Resources (ASX: BLK) has uncovered a new gold zone, dubbed the "Iceberg Zone", beneath the M4 deposit at its Matilda Gold Project in Western Australia.

Further reverse circulation drilling in the area north of the M4 pit has continued to deliver thick zones of mineralisation that now extend over 250 metres and remain open along strike to the north and at depth.

Additionally, a continuous hanging wall lode has been identified which is expected to have a positive impact on mining economics.

Drilling highlights include a high grade zone of 3 metres at 11.4 grams per tonne (g/t) gold from 171 metres and 12 metres at 2.84g/t gold from 180 metres, including 2 metres at 9.15g/t gold in the northern-most and deepest drill intercept into the Iceberg Zone.

The intercept is supported by the re-entry and extension of another hole which returned 23 metres at 2.66g/t gold, including internal dilution, from 119 metres.

A continuous zone of mineralisation has been identified in the hanging wall of the main lode with intercepts including 1 metre at 12.5g/t gold from 132 metres and 9 metres at 2.48g/t gold from 165 metres.

Extensions of mineralisation have also been found in an area between the M1 and M3 pits. These lodes may provide additional sources of near-surface ore to be exploited while targeting the main lodes of M1 and M3 at depth.

Better results include 2 metres at 2.99g/t gold from 34 metres and 3 metres at 5.07g/t gold.

Building on earlier results

These latest results complement results released by Blackham earlier this month.

Previous results comprised 13 metres at 4.51g/t gold from 119 metres, including 2 metres at 14g/t gold; 12 metres at 2.48g/t gold from 158 metres; 11 metres at 3.32g/t gold from 134 metres; 31 metres at 2.32g/t gold from 120 metres; and 10 metres at 5.47g/t gold from 120 metres.

Priority deposit

The M4 Deposit has been identified as a priority area to recommence mining operations at the Matilda Mining Centre.

Blackham will be updating the Resource model and reviewing the mining economics of this deposit in the near future.

The Resource inventory at the Matilda Gold Project currently stands at 25 million tonnes at 1.9g/t for 1.5 million ounces of contained gold, which includes 14 million tonnes at 1.8g/t for 784,000 ounces of contained gold at the Matilda Mining Centre.

Drilling is continuing at the Matilda Project with the focus now turning to the M1 Pit, which historically has been the highest grade and largest producer (1.5 million tonnes at 2.54g/t for 121,000 gold ounces) of the seven pits at the Matilda Mining Centre.

High recoveries

Preliminary feasibility metallurgical testwork has shown the potential for overall gold recoveries of 92.8% from its Matilda Gold Project.

Significantly, this is higher than the 89.9% average recovery assumed in the Matilda Scoping Study announced in November 2012.

The results of the testwork suggest the resource could be economically treated using standard gravity concentration/carbon in leach cyanidation technology.

Matilda has strong economics with a net present value of $0.82 per share and an internal rate of return of 300% indicated in the initial Scoping Study.

Blackham recently secured a $13.32 million funding package, which includes a placement at a 37% premium, with a private company controlled by leading mining industry entrepreneur Joseph Gutnick.

The company received the first tranche of $2.31 million in February.

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