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Blackham Resources Has More High Grade Gold At Golden Age

Blackham Resources' (ASX:BLK) latest drill results of up to 42.1 grams per tonne gold from Golden Age Reef provide more potential feed milling gold feed for re-commissioning of the Wiluna Plant.

The results are also in line with historical high grade results of the quartz reef which produced 160,000oz at 9g/t gold.

The system is still open based on current drill result and the previous modelling looks likely to be conservative.

Previously, Golden Age assays returned bonanza high grades of 5.1 metres at 198g/t gold including 0.8 metres at 1,148g/t gold.

The results do show the variable or "nuggety" nature of mineralisation of the reef.

Most recent results are:

- 2.2 metres at 18.9g/t gold including 0.8 metres at 42.1/t gold (GAUD0004);
- 0.9 metres at 24.8g/t gold (GAUD0005);
- 3 metres at 9.18g/t gold (GAUD0012); and
- 0.7 metres at 16.2g/t gold (GAUD0011).

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.

The Golden Age Stage 1 drill results provide further confidence to the Inferred Resource while confirming the deposit is still open to the east.

Bryan Dixon, managing director, commented:

"The drilling at Golden Age has confirmed our understanding that this deposit has significant further high-grade potential, that remains open, and has previously been conservatively modelled.

"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

Results from the central portion of the Golden Age deposit average 2.2 metres at 83g/t gold between 900 metres to 1100 metres.

The middle portion of the deposit includes the extremely high grade GAUD0003 intersection which contained visual gold with the exceptional assay of 0.8 metres at 1,148g/t gold from 176.6 metres.

GAUD0003 had intersected part of the Inferred Resource that was previously estimated as lower grade due to a lack of data.

Analysis

Blackham appears increasingly likely to upgrade resources at the high-grade Golden Age reef with drill results indicating that previous modelling was conservative.

This is encouraging given that ore from Golden Age will be blended with Matilda open-pit ore to increase the average head-grade of the mill feed for the Wiluna Gold Plant.

Wiluna can be rapidly brought into operation on receipt of approvals with production starting as early as 2Q 2016.

This allows production of over 100,000 ounces of gold per annum at operating costs of $1,000 to $1,100 per ounce.

With Australian gold currently over $1,500 per ounce, this offers significant margins for Blackham.

The company's existing $30 million debt facility ensures it is fully funded to restart the Wiluna Gold Plant. It also had $9.9 million in cash as at 30th June 2015.

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