logo-loader

Blackham Resources intersects further high grade gold at Matilda

Published: 09:45 17 Sep 2014 BST

blackham_resources_map_358_541a3e2b3f486

Blackham Resources (ASX:BLK) has intersected high grade gold from drilling designed to increase the resources open pit limits and the M1 underground potential at its Matilda Gold Project in Western Australia.

Results included: 2 metres at 7.75 grams per tonne gold from 290 metres (MARC0174 West Lode); and 1 metre at 23.9g/t gold from 226 metres (MARC0175 New Lode discovered).

The latest intercepts provide grades and widths that are attractive to underground mining, and confirm significant continuity of the shoots.

Matilda is located close to its 1.3 million tonne per annum Wiluna Gold Plant and infrastructure, and on finalising development funding could be in production within 15 months.

Drilling at the high grade M1 zone extended down-plunge of the planned M1 pit demonstrates underground potential with intersections of:

At the M4 pit, drilling has extended high grade oxide mineralisation with the following results:

-    9 metres at 5.16g/t gold from 28 metres (MARC0170 M4 Lode); and
-    2 metres at 6.67g/t gold from 29 metres (MARC0171 M4 Lode).

Further interpretation of drill results and planning of the next phase of Matilda drilling is underway. 

Numerous exploration opportunities are still present at the Matilda Mining Centre, which has a resource of 760,000 ounces of gold while the resource inventory at the expanded Matilda Gold Project is 4.3 million ounces.

The near-surface mineralisation at M4 North is of particular interest as additional oxide resources would have a positive effect on mining studies. Open pit targets are currently being prioritised. 

Underground extensions at M1 will also be the subject of exploration drilling to scope out the extent of newly-identified shoots.

Extension of high grade zones down plunge of M1


MARC0174 and MARC0175 targeted the M1 West Lode and M1 Central Lode, respectively, 300 metres down-plunge of the planned pit floor.

The latest intercepts provide grades and widths very attractive to underground mining, and confirm significant continuity of the shoots. 

MARC0174 extends a further 60 metres down-plunge the high-grade mineralisation seen in MARC0166, which intersected 7 metres at 11.9g/t gold from 239 metres.

MARC175 was targeting the Central Lode but intersected a new lode with its interception of 1 metre at 23.9gt gold from 226 metres between the Central Lode and the Eastern Lode. 

This demonstrates the potential for new high grade lodes to be discovered at depth due to the stacked nature of the gold lodes at Matilda Mine.
    
The hole also intersected moderate-tenor gold mineralisation (3 metres at 2.33g/t from 291 metre) a further 150 metres down-plunge from the high-grade mineralisation seen in historical drill hole MDDH031, despite the hole deviating 20 metres west of its target. 

Strong silica-sericite-pyrite alteration from 287-294 metres indicates that the mineralised structure was intersected, though on the western limb of the Central Lode antiform where Au grades are typically lower than the hinge and eastern limb. 

Previous drilling results highlighting the potential for M1 to host a high-grade underground mine include:

-    12 metres at 7.44g/t gold from 239 metres including 7 metres at 11.9g/t gold from 244 metres (MARC0166);
-    13 metres at 6.76g/t gold from 236 metres including 6 metres at 13g/t gold from 236 metres (MTRC0014); and
-    12 metres at 5.7g/t gold from 190 metres including 4 metres at 10.5g/t gold from 198 metres (MDDH031).

Blackham’s mine planning envisions the M1 pit being mined in year 1 of its mine schedule. 

The high grade M1 extensions remain a priority exploration target; if Blackham successfully proves the high grade in the M1 lodes continues at depth this target could be bought into the mine plan as early as year 2, potentially adding another high grade feed source for its 100% owned WGP plant which is 19 kilometres to the north east by existing haul roads.

Shallow high grade M4 mineralisation

The latest drilling has significantly increased the likelihood of the M4 open pit extending further to the north. 

Drilling has defined at least 125 metres of strike length along the newly identified high-grade oxide zone starting 50 metres north of the latest M4 pit optimisation crest.

When combined with previous results (MARC0168: 4 metres at 10.3g/t gold from 20 metres, MRC1120: 9 metres at 5g/t gold from 17 metres and 5 metres at 5.6g/t gold from 42 metres), the latest drilling demonstrates a shallow high grade zone of mineralisation plunging to the north. 

This shallow high grade zone of mineralisation increases the potential of future pit optimisations to extend further north to encompass both this zone and the >70gxm zone around MARC0064 (16 metres at 2.91g/t gold from 126 metre) which are both just outside the most recent pit optimisation. 

The M4 mineralisation is open to the north and down plunge and requires more drilling to test the immediate extensions to the M4 pit area.

In addition the shallow M4 mineralisation that extends 1,000 metres of the historical mined pit requires further infill drilling prior to re-examining the open pit economics.

Previous drilling along the M4 North trend has returned significant mineralisation at shallow depths including 6 metres at 3.31g/t gold from 42 metres and 2 metres at 11.3g/t gold from 21 metres.

This indicates the area remains inadequately tested.

The latest drill results also shows the potential for the M4 pit to pull further to the north 

It now also appears the M2 and M4 pits may start to interplay helping the stripping ratios of each.

Analysis

With the latest drilling intersecting high grade gold at widths that are attractive for underground mining and confirming significant continuity of the shoots, Blackham Resources is on the road towards increasing resources at its Matilda Gold Project.

Latest drilling results prove the depth and grade potential of the Matilda Gold Project and the prospectivity held within Blackham’s large exploration portfolio in the Northern Goldfields Region of Western Australia. 

Blackham has generated a list of priority drill targets which focus on free-milling gold targets and resources within open pit or shallow underground depth within close proximity to the Wiluna Gold Plant.

Blackham Resources is looking to prove up the first 500,000oz of gold in the Matilda Gold Project mine plan.

The aim is to bring the 100,000oz p.a. Wiluna Gold Plant into production before the end of 2015 and building a 5 year-plus mine plan.

In addition, the recent resolution of corporate and shareholder changes has removed this as an impediment to investors.

Proactive Investors contends that continued exploration success combined with its strategic assets appeal and strong management will pave the way for significant market re-rating.

Based on continuing exploration success at Matilda which could provide free milling feed and additional gold resources near Wiluna plant, Proactive Investors has calculated a 12 month share price target of $0.23 - $0.27.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

HANetf founder and co-CEO discusses shift to active management in ETF market

HANetf founder and co-CEO Hector McNeil tells Proactive's Stephen Gunnion about shifting trends in the exchange-traded fund (ETF) market in the United States, indicating a big move towards active management within ETFs. Despite the European market lagging behind the US by three to five years,...

14 hours, 30 minutes ago