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Blackham Resources Positioned To Increase Its Gold Bounty In The Rich Wiluna Region Of WA

Blackham Resources (ASX: BLK) is moving ahead at speed in the rich Wiluna region of Western Australia, where the company already has a resource of over 790,000 gold ounces at the Matilda Project.

Geological investigations at the Williamson area has identified an exploration target of 0.5 million ounces to 2.0 million ounces (2g/t gold to 6g/t gold) - which has been defined beneath the existing Williamson and Williamson South Resources and over the Carroll and Prior Prospects.

Blackham believes in the potential of the Williamson area with mineralisation occurring on multiple structures, over a combined strike of over 7 kilometres, from surface to depths of up to 250 metres.

These targets are in excess of the current resource of 364,000 ounces (which combined with Regent 270,000 ounces, Matilda Mine 79,000 ounces and Galaxy 77,000 ounces = 790,000 ounces).

The purpose for Blackham of defining the exploration target is to demonstrate the potential size and scale of gold endowment in the Williamson region.

Over 1,000 drill holes have been drilled in this area to date, successfully identifying the Williamson Mine and associated mineralised structures, yet only 15% have penetrated beneath the weathering profile.

By comparison, nearly 6 million gold ounces have been discovered at the nearby Wiluna Mine with 4 million gold ounces occurring beneath 100 metres depth and mineralisation remaining open 1 kilometre beneath the surface.

With the Wiluna Mine just 18 kilometres along strike from Williamson, the majority of the Williamson region can certainly be considered under-explored.

Matilda Project may unleash 1moz deposit within a month

For investors, it's worth taking note that Blackham has some very interesting news flow in the short term.

In less than a month a resource review from the Matilda Project is due, with the real possibility of the deposit breaking the milestone million ounce resource barrier.

Matilda currently hosts 790,000 gold ounces, which is comprised from 12.8 million tonnes at 1.9g/t gold.

Regent blue sky potential identified in 2006

It is also worth noting that previous owners of the Regent deposit looked at the economics of mining the deposit by open pit methods, and it was last assessed in June 2006 and it was concluded it was likely to be economic above a gold price of A$700 per ounce.

This has the potential to deliver a very big upside for the company if mined, considering if the current gold spot price of around A$1600 is maintained as an average into the medium term.

Blackham plans to re-assess the economics of an open pit under current gold price and cost parameters, with management also of the opinion there is potential for exploiting the down plunge extension of the resource by underground mining methods.

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