Blackham Resources raises $20M and upgrades Bulletin Resource

THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) has raised $20.3 million through a Placement that has been earmarked for spending at the company’s 100 per cent-owned 4.7 million ounce Matilda gold project, located near Wiluna in Western Australia.

Blackham Resources said the funds would be used to:

Enable immediate commitment to the refurbishment of the Wiluna gold plant which is a critical path to gold production in Q3, 2016;

To fast track Matilda reserve and exploration drilling following recent drilling; and

For additional working capital.

“Blackham is pleased with the strong support received for the Placement,” Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.

“The funding allows the plant refurbishment to be fast tracked at the Matilda gold project and delivers additional financial strength and flexibility to Blackham.

“To date Blackham has focussed its efforts on re-working known resources from or adjacent to existing open pit and underground workings within the Matilda and Wiluna goldfields.

“Blackham has only just begun to unlock the geological potential of the Matilda, Quartz reefs and Lake Way extensions and regional prospects.

“We will continue to strengthen and lengthen our reserves as well as ramp up our search for game changing discoveries in a gold project with a nine million ounce gold endowment.”

The Placement will involve approximately 45 million shares at a price of 45 cents per share to raise a total of $20.3 million.

Blackham also announced the latest results from a maiden underground drilling program being carried out at the Bulletin deposit at the Matilda gold project.

The recent drilling has upgraded the Bulletin Resource to 1.6 million tonnes at 4.8 grams per tonne gold for 247,000 ounces of gold (50% now in the indicated category).

The diamond drill program was designed to confirm the continuity of gold mineralisation between two historical stoping areas and the potential strike extension of the upper portion of the Bulletin deposit.

Bulletin Underground drill results include:

11.5 metres at 5.08 grams per tonne gold, including 7m at 7.01g/t gold;

3m at 4.91g/t gold and 2.85m at 6.6g/t gold;

7m at 3.86g/t gold, including 2.75m at 7.83g/t gold;

8.6m at 2.61g/t gold; and

1.95m at 11.2g/t gold.

Drilling results from BUUD0001 were situated only 40m from the decline and 150m below surface.

Blackham said the results provide greater confidence to the width and grade of the lodes, which have been converted from Inferred to Indicated resources as a result of this drilling.