Blackham Resources Ltd (ASX:BLK) has received drill results that have identified potential for new open pits close to the plant at the Matilda-Wiluna Gold Project in Western Australia.
Significantly, the newly identified extensions to gold mineralisation unlock the potential to substantially extend the free-milling mine life of the project.
During March and April, Blackham drilled 130 reverse circulation (RC) holes for 11,446 metres focused on discovering new free milling open pit reserves at the Wiluna Mine.
Drilling is expected to finish in mid-May and resources will be re-estimated at that time.
Metallurgy has confirmed the ore as attractive mill feed
Drilling is focused on free milling ores above the top of fresh rock, generally the top 60 metres targeting oxide and transitional mineralisation.
Importantly, metallurgical test work has confirmed this material as being an attractive feed for the Wiluna CIL plant.
Last quarter the plant produced 20,631 ounces at an all-in sustaining cost (AISC) of $1,092 per ounce.
READ: Blackham Resources finds more effective processing option for Wiluna transitional gold ores
This drilling is a follow-up to the 77,000-metre program that successfully delivered probable reserves of 669,000 ounces.
Pit optimisation studies completed immediately prior to this drilling demonstrate the potential for open pit cutbacks and new open pits to be developed at the Wiluna mine site.
These latest drilling results are expected to support substantial increases to open pit resources and reserves within open pits.
Highlights from recent results include:
• 16 metres at 4.41 g/t gold from 2 metres;
• 10 metres at 1.48 g/t gold from 9 metres;
• 8 metres at 2.03 g/t gold from 5 metres;
• 12 metres at 1.79 g/t gold from 33 metres;
• 4 metres at 6.59 g/t gold from 85 metres;
• 6 metres at 6.00 g/t gold from 55 metres;
• 7 metres at 4.68 g/t gold from 48 metres; and
• 25 metres at 1.14 g/t gold from 10 metres.