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Blackham Resources To Grow Size, Confidence Of Free-Milling Gold Deposit

Blackham Resources (ASX:BLK) has started maiden diamond drilling at the Golden Age Reef of its Matilda Gold Project in Western Australia to increase both the size and confidence of the free-milling gold deposit.

The underground rig arrived at Matilda yesterday and has now commenced Stage 1 of the 3,500 metre program.

Golden Age is a high-grade free-milling quartz reef that produced 160,000 ounces of gold at 9 grams per tonne.

The remaining resource of 600,000 tonnes at 6.7g/t for 125,000 ounces of gold is a priority source of high grade mill feed for recommissioning the Wiluna Gold Plant.

Drilling is ongoing at the Matilda and Galaxy deposits with initial assay results due shortly.

Blackham currently has 3 drill rigs (all double shifting) at the project with a view to fast tracking the drilling required to complete the Definitive Feasibility Study.

Since 1 April 2015, Blackham has completed 4,366 metres of reverse circulation and 1,052 metres of diamond drilling at the project.

In June, the company increased Measured and Indicated Resources at its Matilda Mine by 40% to 424,000 ounces, providing further confidence for the ongoing mining studies.

Bryan Dixon, managing director, commented:

"Blackham is excited about its maiden drill program into Golden Age. 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.

"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."

Golden Age Reef

The company recently received Department of Mines and Petroleum approval to re-enter the Wiluna Underground Mine which is the access to Golden Age Reef.

Mining the free-milling deposit is another important step to implement its strategy of re-commissioning the Wiluna Gold Plant on free milling ores.

Adding interest, Golden Age is just one of numerous high grade quartz reefs in the immediate vicinity of the Wiluna Gold Plant.

Matilda Gold Project

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

Drilling of the Golden Age Reef will increase both grade and of the high-grade free-milling deposit.

Blackham Resources' focus on free-milling deposits will allow it to rapidly re-commission the Wiluna Gold Plant on securing project development approval.

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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