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Blackham Resources Boosts Measured And Indicated Resources At Matilda Mine

Near term gold producer Blackham Resources (ASX:BLK) has further enhanced the credentials of its wholly-owned Western Australia based gold assets.

The Matilda Mine Resources has increased to 12.9 million tonnes at 1.8g/t gold for 724,000 ounces, and importantly 61% is in the higher confidence Measured and Indicated categories. DFS mining studies are also well advanced for the mine.

The Matilda Mine occurs within the highly prospective Coles Shear and its mineralisation is mainly soft, deeply weathered oxide, while being located 19 kilometres by existing haul road from Blackham's Wiluna Gold Plant.

The Matilda Mine is part of the Matilda Gold Project.

The project now boasts 45 million tonnes at 3.3g/t gold for 4.7 million ounces, all within a 20 kilometre radius of the Wiluna Plant.

Measured and Indicated resources now total 20 million tonnes at 3.5g/t gold for 2.3 million ounces, representing 49% of the total resource.

The plant is capable of over 100,000oz pa gold production.

Bryan Dixon, managing director, commented: "The increase in the Measured and Indicated resources at the Matilda Mine gives us further confidence that the Matilda Mine will keep growing.

"We continue to find repeat and stacked lodes along the deeply weathered Matilda system.

"The Matilda Mine is shaping up as an important source of base load free milling ore to re-commission the Wiluna Gold Plant."

Next steps

Blackham outlined that the next steps include DFS mining studies which are well advanced on the updated resource at the Matilda Mine.

Additional drilling is planned to infill and extend M4 Pit Further north and south, and both the M10 starter pit and M4 main pit increase in size

These already indicate the shallow mineralisation at Iceberg 2 and Scorchers immediately to the north and south of the M4 Pit influence the optimisations to extend in each direction.

Also recent drilling at M3 and M1 South has pushed these pits wider and deeper.
Currently 90% of the in-pit resource is in the Measured and Indicated categories giving solid confidence in the resources.

Drilling underway

Blackham is currently drilling a 4500 metre reverse circulation program at the Matilda Mine to upgrade Inferred lodes to Indicated as identified within the DFS pit optimisation.

Drilling is also as targeting further repeating and stacked lodes along the 7 kilometres of strike.

Analysis

Blackham will become Western Australia's next +100,000oz pa producer with production targeted mid-2016, and the 1.3Mtpa plant and associated infrastructure unlocks the value of the Matilda Gold Project.

The PFS confirms robust economics with a low-risk start up strategy, as the company works towards a 10 year mine life across four large geological systems.

Shares in Blackham last traded at $0.30, which is three times higher than a year ago, but the market cap remains low at circa A$60 million, or A$14/resource ounce.

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