Blackham Resources confirms potential for Wiluna open pit mining

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THE DRILL SERGEANT: Blackham Resources (ASX: BLK) announced initial results from RC and diamond drilling undertaken to support the mill expansion study at the company’s Wiluna gold mine in Western Australia.

Blackham Resources said the drilling had defined mineralisation along strike and beneath existing pits, highlighting the potential for cutbacks at several pits.

Drilling of the East and West Pits northern extensions delivered:

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23m at 3.74 grams per tonne gold from 119m;

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6m at 7.65g/t gold from 175m and 5m at 2.01g/t gold from 195m;

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6m at 8.75g/t gold from 88m; and

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7m at 3.17g/t gold from 38m

Gap Pit drilling confirmed extensions to Bulletin deposit along Eastern Shear, including:

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10m at 2.03g/t gold from 79m and 19m at 2.74g/t gold from 158m;

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9m at 4.08g/t gold from 106m and 10m at 2.37g/t gold from 131m; and

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19m at 2.66g/t gold from 6m

Golden Age North drilling suggests more high-grade free milling reef mineralisation amendable to open pit mining. Results include:

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11m at 5.87g/t gold from 50m; and

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7m at 4.9g/t gold from 109m 

The Resources at the Matilda and Wiluna Gold Operation currently stand at 48 million tonnes at 3.3g/t gold for 5.1 million ounces of gold (48% indicated).

The Project resources are currently being re-estimated to include drilling conducted since June 2016.

An update of the Wiluna resource model has commenced and will be finalised once all results from this drill program have been received.

Blackham believes potential exists for a substantial reduction in operating costs if sufficient additional resources can be identified to justify a mill expansion.

“The latest Wiluna extensional drilling has demonstrated the potential to add significant base load open pit mining feed,” Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.

“Updated Wiluna open pit resources are likely to compliment the recent drilling success in extending the Bulletin underground mineralisation.

“Both feed sources will be integrated into the Wiluna expansion study currently underway.”

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au