THE BOURSE WHISPERER: Blackham Resources has elected under a Heads of Agreement to the 100 per cent acquisition of the Matilda and Williamson gold mines and the Regents, Carol Prior, Galaxy gold deposits in the Wiluna gold belt of Western Australia.
Blackham has recently completed due diligence over the project, which it said supports its decision to acquire the project.
“Initially on entering into the Heads of Agreement, management were focused on extensions to the existing gold deposits down plunge,” Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.
“During the due diligence phase it has become very apparent that substantial potential exists to extend these deposits along strike in the shallow oxide material as well.”
Blackham said its initial main focus now will be to explore for new gold resources in and around the Matilda Mine.
Matilda is a large gold system which has been mined in most places to less than 50 metres with seven small pits over a strike of 3.5 kilometres.
“Most of the existing Matilda deposits remain open both along strike and at depth,” the company said.
“Asarco ceased production at Matilda in 1996 when the gold price was about US$400 per ounce.
“Production from all previous owners reached approximately 280,000 ounces from seven openpits.”
Blackham said it intends to target the extensions along strike and the high grade extensions below the existing pits.
It will then remodel the resources and re‐optimise pits based upon current gold prices.
The company has begun planning for its initial drilling program at the project, which will be aimed at commencing in December subject to rig availability and regulatory approvals.
Little systematic regional exploration has taken place on the project since Great Central Mines sold the Wiluna Mine and surrounding package to Normandy in 2002.
Since 1996, the project has been owned by a number of different companies and most of the exploration that has been undertaken throughout this time has focused on the neighbouring Mine.