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Blackham Resources extends production at Golden Age and seeks to extend mine plan

The Golden Age underground deposit is a high grade and free-milling gold-rich quartz vein.
Picture of miner holding up gold nugget
These mining studies have now added another 24,600 tonnes at 6 g/t for 4,700 ounces of production

Blackham Resources Ltd’s (ASX:BLK) Golden Age underground gold mine plan continues to grow with it being extended for a further 6 months to December 2018.

After successfully moving to an owner-operator miner in October 2017, the company has reduced mining costs and alleviated some risks.

This news comes less than a fortnight after the company announced strong increases in production and lower costs at its Matilda-Wiluna gold operation.

READ: Blackham Resources surges 40% as output increases and costs fall

In 2017, Blackham commenced evaluation of the economics of the remaining Golden Age underground resource of 900,000 tonnes at 4.5 g/t for 129,000 ounces gold.

Reevaluation adds 4,700 ounces

These mining studies have now added another 24,600 tonnes at 6 g/t for 4,700 ounces of production targeted between July to December 2018.

Bryan Dixon, managing director said: “Blackham has successfully added another six months to the Golden Age Underground mine plan and is aiming to maintain a 6 to 12 -month rolling mine plan going forward.”

This additional targeted production is incremental to the previously disclosed underground mine plan which finished in June 2018.

Historical production of 160,000 ounces

Production is now expected to continue to produce about 2,500 ounces per quarter through to at least December 2018.

However, there is the possibility of resource expansion.

Dixon said: "This week’s drilling will commence down dip and down plunge from where we are currently mining strong grades at Golden Age.”

Historical production of 160,000 ounces

The Golden Age underground deposit is a high grade and free-milling gold-rich quartz vein.

Historically, the Golden Age underground has produced 160,000 ounces at 9 g/t gold.

Since recommissioning this mine, Blackham has produced 19,500 ounces at 4.7 g/t gold.

Potential to extend resource

Over the last eight months, Blackham’s geology team has identified several priority targets.

Underground drilling will commence this week aimed at further extending the mine plan and potentially allowing an increased mining rate. 

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