Blackham Resources (ASX:BLK) shares were climbing today as the discovery of several high-grade zones at the Matilda gold project in Western Australia added to inventory confidence ahead of a process plant restart next year.
Shares in Blackham hit a 12-month high
of $0.24 intra-day, which is more than five times higher where the
company was trading at the start of 2015.
Outstanding hits in latest round of drilling at the site included a 10-metre intersection grading 8.93g/t gold from 91 metres, containing a 3-metre sample at 26.5 g/t gold.
This 26.5 g/t intercept remains open down-plunge, indicating the considerable exploration upside of its immediate area.
Outstanding hits in latest round of drilling at the site included a 10-metre intersection grading 8.93g/t gold from 91 metres, containing a 3-metre sample at 26.5 g/t gold.
This 26.5 g/t intercept remains open down-plunge, indicating the considerable exploration upside of its immediate area.
Other pits were further defined by results grading as high as 8.62 g/t gold across 5 metres from 91 metres and 4.93 g/t gold across 5 metres from 62 metres.
This work completes planned drilling at the project’s Galaxy deposit, while drilling continues in the Matilda and Williamson areas further south.
The current results are likely to reinforce Matilda economics and will be included in the resource and mining studies for the definitive feasibility study
The resource models, geotechnical studies and metallurgical testwork for a prefeasibility study (PFS) are now complete. The mining designs are in the process of being refined based on the latest data, and mine schedules are also being optimised.
The PFS is now in the final stage of completion and is expected to be reported shortly.
Improving confidence
The new drilling at Matilda has helped reinforce plans for one of the first pits to be mined, known as the M10 pit.
M10 has been prioritised due to its shallow oxide ore coming to surface and has been further supported with drilling results of 8 metres at 5.33 g/t gold from 32 metres, 4 metres at 5.15 g/t gold from 45 metres and 4 metres at 8.45 g/t gold from 81 metres.
These results provide confirmation of a geological model comprising high-grade oxide mineralisation in flat supergene horizons, as well as steeply dipping feeder lodes.
M10 mineralisation remains open at depth.
The latest drill results are also expected to improve other areas of Matilda with lower stripping ratios, which in turn will likely result in tighter economics.
Drilling results announced at the project’s Golden Age reef last month recorded up to 42.1 g/t gold in an area that had previously delivered bonanza grades of 5.1 metres at 198 g/t gold, including 0.8 metres at 1,148 g/t gold.
Blackham’s drilling and mining studies have been focused on adding further confidence as well as extensions to Matilda mine resources, which total 12.5 million tonnes at 1.8 g/t for 712,000 ounces of gold.
The Matilda Mining Centre is intended as
a base load feed of soft free-milling ore for the 1.3 million tonnes
per annum Wiluna plant.
Plant progress
The Wiluna plant, which lies only 19 kilometres by haul road from the Matilda mine site, is set for re-commissioning in the second quarter of 2016.
The mill is expected to unlock the value of the project through the processing of 1.3 million tonnes per annum, allowing for a production rate of over 100,000 ounces of gold per annum.
Earlier this year, Blackham signed a memorandum of understanding with mineral extraction technology company EcoTech Mining Limited with a view to improving the metallurgical ore recoveries and processing costs at the plant.
Wiluna has a floatation and biox process that over the last 10 years has averaged recoveries of 82%. Its refractory circuit has operated successfully for more than 25 years.
The processing circuit is 100% owned by Blackham and will underpin a 10-year strategy focused on the free milling of a stage-one free milling resource totalling 22 million tonnes at 1.9 g/t gold for 1.4 million ounces of gold.
Matilda’s global resource stands at 44 million tonnes grading 3.3 g/t gold for 4.7 million ounces of gold.
Analysis
The latest drilling results are significant in that they allow for further streamlining of Matilda’s mining plans and economics during the lead-up period before the Wiluna plant is ready for restart.
All of the recently enhanced deposits are within 20 kilometres of the plant via existing haul roads.
Operating costs at Wiluna are estimated at between A$1,000 to A$1,100 per ounce, signalling potential for significant margins with the Australian gold price currently in excess of A$1,550 per ounce.
Matilda has a 8.7 million ounce gold endowment in the highly prospective Northern Yilgarn region, where a broader endowment of 40 million ounces has been estimated.
Scope for Matilda expansion also exists in Blackham’s 780 square kilometres of tenure and 55 kilometres of mine sequence strike in a region where little systematic exploration has transpired in more than two decades.
Blackham held cash and investments of $10 million as of the end of June as well as a $30 million undrawn debt facility.
Plant progress
The Wiluna plant, which lies only 19 kilometres by haul road from the Matilda mine site, is set for re-commissioning in the second quarter of 2016.
The mill is expected to unlock the value of the project through the processing of 1.3 million tonnes per annum, allowing for a production rate of over 100,000 ounces of gold per annum.
Earlier this year, Blackham signed a memorandum of understanding with mineral extraction technology company EcoTech Mining Limited with a view to improving the metallurgical ore recoveries and processing costs at the plant.
Wiluna has a floatation and biox process that over the last 10 years has averaged recoveries of 82%. Its refractory circuit has operated successfully for more than 25 years.
The processing circuit is 100% owned by Blackham and will underpin a 10-year strategy focused on the free milling of a stage-one free milling resource totalling 22 million tonnes at 1.9 g/t gold for 1.4 million ounces of gold.
Matilda’s global resource stands at 44 million tonnes grading 3.3 g/t gold for 4.7 million ounces of gold.
Analysis
The latest drilling results are significant in that they allow for further streamlining of Matilda’s mining plans and economics during the lead-up period before the Wiluna plant is ready for restart.
All of the recently enhanced deposits are within 20 kilometres of the plant via existing haul roads.
Operating costs at Wiluna are estimated at between A$1,000 to A$1,100 per ounce, signalling potential for significant margins with the Australian gold price currently in excess of A$1,550 per ounce.
Matilda has a 8.7 million ounce gold endowment in the highly prospective Northern Yilgarn region, where a broader endowment of 40 million ounces has been estimated.
Scope for Matilda expansion also exists in Blackham’s 780 square kilometres of tenure and 55 kilometres of mine sequence strike in a region where little systematic exploration has transpired in more than two decades.
Blackham held cash and investments of $10 million as of the end of June as well as a $30 million undrawn debt facility.
Source : Proactiveinvestors Australia
