THE BOURSE WHISPERER: Blackham Resources has executed a heads of agreement to acquire 100 per cent of the Wiluna South and Williamson gold mines.
The deal will also see the company pick up the Regents, Carol Prior, Galaxy gold deposits in the Wiluna gold belt of Western Australia.
The 500 square kilometre landholding surrounds the operating Wiluna gold mine owned by Apex Minerals.
No systematic regional exploration has taken place on the project since Great Central Mines sold the Wiluna Mine and surrounding package to Normandy in 2002.
Most of the exploration carried out on the project since 1996 has focused on the neighbouring mine.
Blackham’s initial focus will be to explore for new gold resources in and around the Wiluna South mine.
Wiluna South is a large gold system consisting six historical open, pits which have been mined to less than 80 metres.
The mining from the pits has confirmed the system extends over a strike of 3.5 kilometres.
Blackham said potential at Wiluna South has been highlighted by a previously reported intercept of 14 metres at 12.15 grams per tonne, approximately 300m down‐plunge of the previously mined pits.
A number of mineralised zones intersected by shallow RAB drilling within the Wiluna South system also demonstrate consistent plunge geometry and down‐dip potential, however these are yet to be tested at depth.
The Wiluna South database includes 6,660 holes with an average depth of drilling of 49m.
270 of these holes are deeper than 100m and only 53 holes are deeper than 200m, which the company considers presents a significant opportunity for the discovery of new deposits.
A number of shallow intercepts have also been struck outside the historical pit areas with no follow up drilling, which Blackham view to be additional open‐pit targets.
The Williamson Gold Mine is located approximately 10km east of the Wiluna South project and is situated on an extension of the Wiluna mine sequence under the shallow cover of Lake Way.
Blackham will prioritise drilling of the high grade targets below the Williamson pits and nearby Carroll Prior Deposit with a view to revising the resources and re‐optimising the open pits.
Blackham Managing Director, Bryan Dixon made the following statement,
“It is not often you get an opportunity like this in your own backyard,” Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.
“This agreement allows Blackham to gain the largest landholding in one of Western Australia’s major Archean greenstone belts that has produced over four million ounces of gold.
“The systems we are targeting have only limited shallow drilling and mining that took place when gold prices were a fraction of today’s gold price.
“Only one of the targets has had systematic exploration on it in the last 15 years.”
A number of other highly prospective targets exist within the project including the Regent deposit.
Regent is located 10km from the Wiluna Mill under thick transported cover and was initially discovered by Wiluna Mines.
Subsequent owners conducted further drilling and estimated resources which are yet to be verified by Blackham.
The company’s exploration team is currently reviewing previous exploration results and evaluating the potential for extensions such as Regent North.