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Blackham Resources Re-Enters Golden Age In Key Step Towards Production

Blackham Resources (ASX:BLK) employees have successfully re-entered the Golden Age area of the Wiluna Underground Mine.

Re-establishing access to the Golden Age area of the Wiluna underground mine is another important step to implementing Blackham's strategy of re-commissioning the Wiluna Gold Plant on free milling ores.

Underground access to Golden Age has been re-established, with preparations for drilling to be fast-tracked.

Bryan Dixon, managing director, commented:

"The high grade Golden Age reef will be blended with the base load open pit Matilda Mine ore to increase the average grade of the mill feed.

Golden Age previously produced 160,000 ounces at 9g/t gold and has a remaining resource of 0.6 million tonnes at 6.7g/t gold for 125,000 ounces.

This is a priority source of high grade free milling ore for recommissioning the Wiluna Gold Plant.

Dixon added: "The Golden Age is just one of numerous high grade quartz reefs in the immediate vicinity of the Wiluna Gold Plant.

"Golden Age is immediately accessible with established underground infrastructure that will enable mining to commence rapidly on project development approval."

Drilling at Golden Age

Blackham has also confirmed suitable drill pad positions for infill and extensional drilling of the Golden Age reef.

The company has sourced an underground diamond drill rig and intends to commence its maiden drill program as soon as possible.

The drilling is in line with Blackham's focus on free-milling gold targets and resources within open pit or shallow underground depths, in close proximity to the Wiluna plant and infrastructure and capable of being bought into the early years of the mine plan.

Matilda hosts 4.7Moz gold

The Matilda Gold Project has total resources of 44 million tonnes at 3.3g/t gold for 4.7 million ounces, all within a 20 kilometres radius of Blackham's wholly-owned Wiluna gold plant.

The plant is capable of 1.3Mtpa for over 100,000 ounces of gold production per annum.

Measured and Indicated Resources total 20 million tonnes at 3.5g/t gold for 2.3 million ounces - representing 48% of the total resource.

Analysis

Re-establishing access to the Golden Age area of the Wiluna underground mine is another important step to implementing Blackham's strategy of re-commissioning the Wiluna Gold Plant on free milling ores.

Blackham is on schedule for the first gold pour in the second quarter of 2016.

The company has already received the first funds from a $38.5 million funding package from Orion Mine Finance.

This package will fund the company to first gold production.

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