Blackham Resources (ASX:BLK) has delivered an upgrade in resources at the Williamson Mining Centre, which forms part the company's Matilda Gold Project in Western Australia.
Blackham has a clear strategy to become Western Australia’s next +100,000 gold ounce per annum producer, with production to commence mid-2016 from oxides and high grade free milling reefs.
The plan includes a low risk start up with soft free milling ore will be used to repay debt, while exploration continues on high grade reefs and base load ore.
Blackham has a 1.3 million tonne per annum plant and associated infrastructure, which is the key to unlocking the value from Matilda.
Currently the company has a 4.7 million gold ounce resource and a 780 square kilometre footprint in Australia’s biggest gold belt.
Williamson resource estimate
The new Williamson resource estimate (including the Williamson South Deposit) is 7.1 million tonnes at 1.6g/t gold for 360,000 ounces. In the Indicated category, is 3.3 million tonnes at 1.62g/t gold for 171,000 ounces.
The increased confidence in the Williamson block model was the result of the inclusion of 5 diamond and 41 reverse circulation holes that were drilled in late 2015.
The Williamson/Lake Way area is expected to be an important source of base load free milling ore to extend the mine life of the project.
Williamson is a bulk-tonnage gold deposit with geological similarities to Thunderbox (Saracen Mineral Holdings) and Gruyere (Gold Road Resources) elsewhere in the Yilgarn region.
The company has recently measured and analysed a low-grade stockpile containing 100,000 tonnes at 1.4g/t gold for 4,500 ounces.
This material is ready for haulage and early production of gold.
The Williamson Gold Mine is located 26 kilometres south of the Wiluna Gold Plant and is situated on an extension of the Wiluna Mine Sequence under the shallow alluvial cover of Lake Way.
Blackham has been one of the best performing stocks on the ASX over the past 12-months.
Shares hit $0.50 today, which is around six times higher than the same time one year ago.
Blackham remains one of Proactive Investors top gold picks for 2016.
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