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Blackham Resources Ltd Drills High Grade Extensions At Matilda Gold Project

Blackham Resources Ltd (ASX:BLK) has drilled out high grade extensions at the Essex gold deposit located within the 5.1 million ounce Matilda Gold Project in Western Australia.

Blackham will start open pit and underground gold mining at Matilda this month.

Three reverse circulation holes were drilled returning intersections including 18 metres at 4.88 g/t gold and 5 metres at 10.8 g/t gold.

Follow up drilling is currently being planned and a revision of the resource estimate at Essex is underway.

Bryan Dixon, managing director, commented: "Blackham's strategy is to chase open pit and shallow underground
mineralisation close to existing infrastructure.

"The latest Essex drilling has confirmed there is further high grade shallow mineralisation along the Wiluna East Lode Fault."

Drill result details

A program of three holes has been completed targeting extensions of mineralisation in close proximity to existing infrastructure.

All holes targeted extensions of mineralisation within 150 metres of existing infrastructure at depths of less than 500 metres from surface.

Results include:

- 6 metres at 3.47 g/t gold from 104 metres;
- 6 metres at 8.99 g/t gold from 119 metres;
- 19 metres at 6.71 g/t gold from 128 metres;
- 18 metres at 4.88 g/t gold from 181 metres; and
- 5 metres at 10.8 g/t gold from 134 metres.

The mineralisation is currently being re-modelled and shows both underground and open pit mining potential.

Matilda Gold Project

All 5.1 million ounces of gold in the 860 square kilometre Matilda Gold Project are within a 20 kilometre radius of the company owned Wiluna gold plant.

The Wiluna gold plant, which operated up until 2013 can process up to 100,000 ounces per annum.

The final environmental, mining and water approvals are in place at the Matilda project, which have unlocked a $23 million funding facility provided by Orion Mine Finance.

With open pit and underground mining to begin shortly, Blackham remains on track for first gold production during the September quarter.

Analysis

While the commencement of underground and open pit gold mining this month is the focus for Blackham, low cost exploration programs such as this drilling at Essex is positive.

Blackham is leveraging off the existing data in order to add ounces to its mine plan cost effectively.

Due to the proximity to infrastructure, any economic mineralisation intersected will require limited additional capital development to access and is likely to allow rapid conversion into the mine plan.

With contractors now selected and mining to begin this month, Blackham is on track to pour its first gold bar in the September quarter.

Production timing for Blackham is fortuitous with the AUD gold price trading strongly at A$1,775 per ounce.

Shares in Blackham are up over 190% year to date, currently trading at $0.68 per share.

Blackham maintains its broker coverage through BW Equities with a price target of $0.75 per share and Canaccord Genuity with a target of $0.80 per share.

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