Blackham Resources hits high-grade gold and extends Golden Age underground deposit

Blackham Resources Ltd (ASX:BLK) has received high-grade gold results in reserve extensional drilling at Golden Age underground mine near Wiluna in Western Australia’s Mid-West. Results are from a further 15 holes for 1,201 metres drilled at underground mine extension targets. The drilling is aimed at extending and improving high-grade free-milling mine life and improving transitional cashflows for the next 12-18 months. Intersections demonstrate the continuity of high-grade mineralisation above the upper-most mine levels with better results including: 2.7 metres at 4.02 g/t gold from 30.7 metres, including 0.3 metres at 13.4 g/t and 0.7 metres at 6.71 g/t; 6.6 metres at 8.24 g/t from 46.6 metres, including 0.6 metres at 82.2 g/t; 10.6 metres at 3.45 g/t from 62.1 metres, including 5.2 metres at 5.45 g/t and 3.8 metres at 8.14 g/t from 88.1 metres; and 7.1 metres at 6.31 g/t from 65.7 metres. “Excellent results” Executive chairman Milan Jerkovic said: “These excellent results further demonstrate the continuity of high-grade Golden Age mineralisation, both above the upper-most mine levels and at depth. “The lower extensions build on pre-Blackman drilling showing high-grade mineralisation remains open for a considerable distance below the current mining level. “This is particularly supportive of an extension to mine life at Golden Age and thus, sustained production of high grade, free-milling ore. “Together the results progress our strategy of ensuring solid transitional cashflow as we pursue our staged Sulphide Expansion Plan which aims to see underground production ramp-up to 100,000-120,000 ounces per annum by FY 2021.” Golden Age is a high-grade narrow-vein quartz reef deposit that provides supplementary high-grade mill feed along with baseload feed from the company’s open pit mines. Golden Age Lower extensions Blackham is also mining Golden Age Lower mineralisation on the 800 level, with drilling of the 775 level aimed at extending the mine further at depth. Pre-Blackham drilling intersections between the 600 and 700 levels show that high-grade Golden Age reef mineralisation remains open for a considerable distance below the current workings. This zone is the target of further drilling that began in late March with the arrival of a second rig to drill between the 775 and 650 levels, with results expected over the coming weeks. Results from the 775 level drilling demonstrate the continuity of high-grade mineralisation at depth: 0.9 metres at 34.2 g/t from 29.4 metres; 2.7 metres at 5.1 g/t from 32.1 metres; 2.7 metres at 10.07 g/t from 46.5 metres; 1.6 metres at 5.48 g/t from 43.8 metres; and 0.9 metres at 12.2 g/t from 68.4 metres. Shares are more than 11% higher at 1.1 cents, up from 0.7 cents at close on March 19.  Stage-1 sulphide reserve development The company recently raised $52 million in equity from existing shareholders and global institutions who joined the registry for the first time, as well as major shareholder Delphi AG of Germany, to advance stage-1 sulphides production. Drilling has commenced with the objective to increase stage-1 sulphide reserves and will accelerate with a second RC rig and a surface diamond rig engaged to mobilise to site this month. The stage-1 sulphide expansion project aims to see underground production ramp-up through FY 2021 to 100-120,000 ounces per annum over an initial 6-year underground mine plan. Wiluna is endowed with a large underground sulphide resource that stands at 18.5 million tonnes at 4.82 g/t for 2.9 million ounces, including 1.7 million ounces (58%) in the inferred category, which presents the company with substantial reserve conversion and life-of-mine extension opportunities.