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Blackham Resources Upgrades Gold Resource At Matilda Project

Blackham Resources (ASX: BLK) has increased confidence levels in the Williamson Mining Centre at its Matilda Gold Project in Western Australia, with an updated resource estimate placing 147,000 ounces of the contained gold resource in the Indicated category.

Notably, the increased confidence in the geological model allows Scoping Studies to be completed.

Independent geological consultants RungePincockMinarco estimated the new Williamson Resource - including the Williamson South Deposit - at 6.3 million tonnes at 1.7 grams per tonne gold with 2.7Mt at 1.7g/t now in the Indicated category.

Previous Resource figures for Williamson were 6Mt at 1.9g/t contained entirely in the Inferred Category.

The increased confidence in the block model was the result of adding the grade control data and 15 additional reverse circulation and diamond drill holes since the previous block model was calculated.

This has also updated the overall Matilda Resource to 25Mt at 1.9g/t gold for 1.5 million ounce of contained gold with 408,000 ounces in the Measured and Indicated categories, an increase of 57% over the previous estimate released in January 2013.

Blackham believes there is potential to make additional improvements in the confidence of the Williamson Resource Model as well as increase the resources which are open both along strike and at depth.

Exploration programmes are currently being planned to test these targets. A review of targets within the Williamson region is also underway.

Williamson

Mineralisation at Williamson occurs as weakly disseminated sulphides within a broad anomalous envelope around a north striking/east dipping monzogranite.

Higher grade sulphide and visible gold mineralisation is associated with the shearing on the contacts of the granite and also within the main west dipping shear that intersects the monzogranite.

Mineralisation within the monzogranite body varies from broad low grade disseminated sulphides in the monzogranite to high grade veins formed within fractures (possibly conjugate) containing visible gold.

Alteration ranges from weak carbonate chlorite alteration distal to the main structure to strong hematite carbonate silica pyrite alteration associated with high grade mineralisation. The ore body is almost vertical with up to 40 metre true widths.

Over 2,000 drill holes were used in the Resource estimate with resource outlines based on mineralisation envelopes prepared using a nominal 0.35g/t gold cut-off grade.

The Indicated portion of the resource was defined where the drill spacing was predominantly at 10 metres by 20 metres, and continuity of mineralisation was strong.

Portions of the resource have also been drilled by close-spaced grade control on 5 metre sections. These Indicated areas are likely to be upgraded to Measured once the data quality has been confirmed by the company.

Importantly, the Indicated portion of the resource is immediately below the existing pit, which will facilitate studies of the open-pit cutback potential.

Analysis

The increased Resource confidence at Williamson lends further confidence and critical mass of resources to Blackham Resources' goal of re-commissioning the Matilda Gold Mine.

It also follows on the discovery of a new gold zone, dubbed the "Iceberg Zone", beneath the M4 deposit that remains open along strike to the north and at depth.

These will likely improve on Matilda's already strong economics with a net present value of $0.82 per share and an internal rate of return of 300% as indicated in the initial Scoping Study.

To top it off, the $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, positions the company to continue adding value to Matilda.

The company received the first tranche of $2.31 million from the funding in February. The second tranche will be completed following receipt of shareholder approvals at the general meeting planned for the 6 June 2013.

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