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Blackham Resources Ltd swells Ore Reserves to 517,000 gold ounces

Blackham Resources Ltd (ASX:BLK) has revised its Ore Reserves at its Matilda Gold Project in Western Australian upward to 6,354,000 tonnes at 2.5g/t gold for 517,000 ounces.

The estimate was undertaken by Entech Pty Ltd based on the successful Bulletin Resources upgrade last month, and delivered a very strong conversion of Bulletin Mining Inventory to Reserves.

Entech focussed on the Bulletin Upper portion of the Bulletin Sulphide mine plan and completed a redesign and reschedule of the area incorporating the updated resource information.

The Ore Reserve estimate is based on financials and modifying factors determined as part of the recent Definitive Feasibility Study (NYSE:DFS).

Bryan Dixon, managing director, commented:

"This is a good first pass result based on our early drilling of the Bulletin Underground and shows our strategy of targeting shallow resources with easy access that can be easily converted to reserves for a low risk mining solution."

Background

Recently the company appointed Bruce Kendall as chief geological officer. Kendall has been involved with planning the discovery holes for the Tropicana and Coyote gold deposits and has helped increase the resource bases at the Sunrise Dam Gold Mine and Stockman VMS project.

The Matilda Gold Project incorporates over 780 square kilometres of tenements and now has 45 million tonnes at 3.3g/t gold for 4.7 million ounces of resource.

These resources are all located within a 20 kilometres radius of Blackham's 100% owned Wiluna gold plant capable of over 100,000 ounces per annum gold production.

Blackham intends to increase its resource inventory and grow the mine life through local exploration as the company works towards a 10 year mine life across four large geological systems.

Blackham is targeting gold production in Q3, 2016.

Analysis

Shares in Blackham are trading around $0.40 representing a solid appreciation from the $0.22 per share they started 2016.

Blackham continues to attract broker coverage through BW Equities who increased their price target to $0.75 a share last month and Canaccord Genuity with a target of $0.80 a share.

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