Blackham Resources (ASX:BLK) has received additional assays from its 25,000 metre drill program investigating the open pit potential at Wiluna and to support the mill expansion study.
Wiluna is a historical gold mine within Blackham’s 100% owned Matilda Gold Project, which hosts 5.1 million ounces of gold and is located in Western Australia.
High-grade gold has been intersected at shallow depths including 24 metres at 7.73 g/t gold, which highlights the potential for open pit mining.
Since the mid 1990s, previous operators at the Wiluna Mine have focused on the underground resources and have not explored the potential of open pit cutbacks.
The project resources are currently being re-estimated to incorporate this additional drilling.
Drill result details
Additional assay results from the East and West Lodes at Wiluna which were drilled as part of a 25,000 metre reverse circulation and diamond drilling program have been received.
- 24 metres at 7.73 g/t gold from 95 metres;
- 21 metres at 1.19 g/t gold from 129 metres;
- 10 metres at 3.51g/t gold from 65 metres;
- 13 metres at 2.87g/t gold;
- 8 metres at 2.21g/t gold from 172 metres; and
- 14 metres at 1.60 g/t gold from 123 metres.
The East and West Lodes are located within 1.5 kilometres of the refurbished Wiluna gold plant.
An update of the East West resource model is nearing completion.
Blackham is both underground and open pit gold mining from its 100% owned Matilda and Wiluna Gold Operations located in Australia’s largest gold belt.
The Wiluna Gold Plant is located in the centre of the combined operation and can currently process 100,000 gold ounces per annum.
A mill expansion study is in progress, which is exploring the potential to grow production beyond 200,000 gold ounces per annum is in progress.
The 25,000 metre drilling program continues to yield significant gold grades and now shows continuity of mineralisation over 300 metres outside the current pit.
An update of the East West resource model is nearing completion and resource estimates are also in the process of being completed at the remaining deposits.
There is the potential for a significant reduction in operating costs if sufficient additional open pit resources to justify a mill expansion can be identified.
Blackham will stay leveraged to exploration news flow with results for the remainder of the drilling program are expected within the next two weeks.
Shares in Blackham have more than doubled year to date.