Blackham Resources (ASX:BLK) has released a resource update at its Matilda mine where the total amount of gold in the measured and indicated categories increased by 40% to 424,000 ounces. The total mine resource now stands at 12.5 million tonnes containing 713,000 ounces gold at an average grade of 1.8 g/t. Keep in mind this is just the resource at the Matilda zone, and the global resource estimate stands at almost 4.7 million ounces gold.
The current focus is aimed to increase the confidence of the resource as well as increasing the in-pit resources through further exploration at the new discoveries of shallow mineralization near the open pit. On top of that, a new exploration program has encountered some bonanza-grade intercepts at the Golden Age Reef, where Blackham has found 5 meters of 200 g/t gold, including almost 1 meter of 1,148 g/t gold. That’s positive, but it’s very likely the drill bit has just encountered a nugget which skews the average grade a little bit.
Blackham has already completed a 2,000 meter drill program and as funding has been secured to bring the project back to production, Blackham’s anticipated start-up date of Q2 2016 seems to be quite realistic.
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Disclosure: The author holds no position in Blackham Resources. Please see our disclaimer for current positions.
