Blackham Resources starts anticipated drilling at Matilda gold project, WA
Blackham Resources (ASX: BLK) has recommenced drilling at its Matilda Gold Project, including its first drilling at the Galaxy and Mentelle prospects.
The
reverse circulation rig has been mobilised to site and is now drilling
at Galaxy, representing the first stage in its combined Matilda – Wiluna
development strategy.
Blackham recently enhanced its Matilda Gold Project by acquiring the nearby Wiluna Mine and processing plant.
This
complements Blackham's wholly-owned Matilda project - and positions the
company as a near-term gold producer with a very large prospective
exploration package.
The Wiluna mine holds 16.7 million tonnes at
5.3 grams per tonne gold for 2.8 million ounces, and Matilda carries
23.7 million tonnes at 1.9 grams per tonne for 1.4 million ounces.
The
Galaxy Deposit is quartz vein hosted mineralisation that outcrops at
surface, and was historically mined in the early 1900’s. There is a
52,000 ounces of resource.
The deposit has recently been re-modelled, highlighting opportunities to extend the mineralised lodes closer to surface.
Preliminary
economic evaluations indicate that a modest size pit can be
economically developed, with material expansion possible with further
drilling.
The program will also improve resource confidence by
converting inferred gold ounces to the indicated category, thus
substantiating a long-term mining operation.
At Mentelle
Prospect, previous explorers identified mineralisation with similar
characteristics to the Matilda Mine which lies 2 kilometres to the east.
Previous intercepts include 4 metres at 13.4 grams per tonne
gold from 90 metres, and 6 metres at 4.5 grams per tonne from 99 metres.
These results are significant as they demonstrate that Mentelle
may be part of a larger gold mineralised system connected to Matilda.
The program at Mentelle will test mineralisation closer to surface and also examine open pit mine potential.
Blackham
is certainly one of the more active small cap explorers around at the
moment, just last week securing a free carry to completion of a BFS for
non-coal resources at its Zanthus lignite coal project.
Zanthus lies just 18 kilometres east of Sirius Resources (ASX: SIR) Nova-Bollinger nickel-copper massive sulphide discovery in the Fraser Range nickel province.
Blackham farmed out a 75% stake in the base and precious metal rights to Rumble Resources (ASX: RTR).
Analysis
The
Mentelle trend has fascinating parallel structure possibilities to
Matilda, a potential resource with Matilda like characteristics. A drill
program will test the structure.
In a nutshell, Blackham rapidly
grew the free milling Matilda deposits over the last 2 years since
acquisition. It undertook the acquisition of Wiluna Gold Plant (WGP)
and infrastructure at fire sale prices.
As importantly, it unlocked the value inherent in the Matilda Gold Project.
With
a multi-million ounce project with 55kms of strike and 780km2
landholding with acquisition, exploration & development cost circa
A$3/oz Au resource this lightly valued developer has big plans.
Notably, all the deposits are within 26 kilometres of the Wiluna Gold Plant.
Exploration
will now focus on free-milling mineralisation, this holds the key,
utilising both ball mills for free-milling ore up to 1.5mtpa.
Cashed up, Blackham is trading at a Market Cap of just ~ A$17.8 million or EV of around $4/oz gold resource. We do not believe these prices or valuations will be on offer for that long.
