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Blackham Resources In Bonanza 1,148g/T Gold Discovery At Golden Age Reef

Blackham Resources (ASX:BLK) has returned bonanza gold grades from maiden drilling at the free-milling underground Golden Age Reef of its Matilda Gold Project in Western Australia.

GAUD0003 returned 5.1 metres at 198 grams per tonne gold from 173.1 metres including a bonanza result of 0.8 metres at 1,148g/t gold from 176.6 metres.

Drilling is being carried out to upgrade the size and confidence of the resource.

This intersected part of the Inferred resource that was previously estimated as lower grade due to a lack of data, demonstrating the variable or "nuggety" nature of mineralisation.

Mineralisation is hosted within sheared dolerite with visible gold present in sulphide stringers in the last 1.5 metres of the quartz vein.

Assays from the other 10 holes out of the 11 drilled to date are still pending.

Golden Age is a free milling quartz reef that previously produced 160,000 ounces of gold at 9 grams per tonne with a remaining resource of 600,000 tonnes at 6.7g/t for 125,000 ounces of gold.

In late July, results from drilling at the Iceberg 2 zone indicated potential to merge the M4 and M4 North open pits. This could increase project economics by reducing the stripping ratios and increase free-milling resources.

Bryan Dixon, managing director, commented:

"Our initial results from our maiden drilling at Golden Age have confirmed our understanding that this deposit has significantly further high-grade potential.

"The next drill results will confirm the potential for expanding the size of the Golden Age resource. The high-grade Golden Age ore will be blended with Matilda open-pit ore to increase the average head-grade of the mill feed.

"Golden Age is just one of numerous high grade quartz deposits in close vicinity of the Wiluna Gold Plant. Golden Age has established underground infrastructure that will allow mining to commence rapidly following the development decision."

Drilling Results

The gold mineralisation intersected at GAUD0003 is located 55 metres east of the previous underground mine workings.

Excluding the extreme high grade portion of 0.8 metres at 1,148g/t gold, the remainder of the intercept returned a still high grade 4.3 metres at 21.3g/t gold.

Further infill drilling may identify additional bonanza lodes.

Blackham received Department of Mines and Petroleum approval to re-enter the Wiluna Underground Mine to access the Golden Age deposit in mid July 2015.

The company seeks to leverage the free-milling ore to restart the existing Wiluna plant.

This has low capital re-start costs of about $25 million, which will be financed out of its existing $30 million debt facility, and can be rapidly brought into operation on receipt of approvals with production starting in 2Q 2016.

Analysis

Blackham Resources' high grade intersection of 5.1 metres at 198g/t gold from 173.1 metres increases the likelihood that it could increase both the size and confidence of the Golden Age Reef resource.

That this intersected part of the Inferred resource that was previously estimated as lower grade provides further confidence.

Further assay results are expected over the next two weeks.

The company also has a pipeline of news flow from drilling at its Matilda and Galaxy deposits over the next month.

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