Wednesday, 8 February 2012

Blackham Resources drills to extend Resource at Matilda Gold Mine

Blackham Resources (ASX: BLK) has commenced a maiden drilling program at the Matilda Gold Mine following the recent release of an initial JORC Resource.

A total of 2,000 metres of reverse circulation drilling will be carried out at Matilda, which has not been drilled in more than 15 years.

In January, Blackham confirmed an Inferred Resource for the Matilda Gold Project of 10.2 million tonnes at 1.8 grams per tonne (g/t) gold for 601,000 ounces of gold within the project area, including 301,000 ounces remaining at the Williamson Mine since the completion of mining.

The company believes there is significant opportunity to add to the existing resources at Matilda and that there is potential for sizeable open pit and high grade underground deposits.

Historical activity
Historically, most mining at Matilda has not gone beyond 50 metres depth, with seven small pits mined over 3.5 kilometres strike.

Limited deeper drilling carried out in the area was successful in identifying the high grade lodes in the fresh rock, but this will require further definition drilling.

Most existing deposits at Matilda remain open along strike and at depth.

Production from all previous owners totalled 4 million tonnes at 2.2g/t gold for about 280,000 ounces of gold.

To date, Blackham’s review of resource estimates has focussed on advanced prospects and mines, with other prospects in the project still to be investigated to determine potential resources and exploration targets.

Matilda Gold Project
The Matilda Mine is part of Blackham’s Matilda Gold Project, which covers more than 600 square kilometres in Western Australia’s Wiluna region, where more than 4 million ounces of gold has been produced.

The project surrounds Apex Minerals’ (ASX: AXM) operating Wiluna Gold Mine which has a gold Resource of more than 1 million ounces.

The Williamson Mine, also part of Blackham’s Matilda Project, was operated by Agincourt Resources from 2005 to 2006 with production reported to be about 23,000 ounces.

Capital raising to progress Matilda
Late last month Blackham announced a share placement comprising 4.75 million shares at $0.20 to raise up to $950,000 to progress the Matilda gold project.

Funds from the capital raising will also be allocated to exploration and development of the company’s Scaddan and Zanthus Coal Projects.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/25103/blackham-resources-drills-to-extend-resource-at-matilda-gold-mine-25103.html

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