Blackham Resources looks like it is getting set for another upgrade in gold resources and reserves after new drilling revealed multiple extensions of high-grade, shallow, oxide ores right on the doorstep of its Wiluna mill.
In an update to the ASX, the rapidly growing gold producer reported that results from the latest drilling from 130 RC holes in March and April had the potential to substantially extend the life of open pit ore reserves.
The drilling was targeted at free-milling open pit reserves over a strike length of 3.7 km and will continue until the middle of this month. This will be followed by a re-estimation of resources.
The latest program follows last year’s massive drilling program of 77,000m, which delivered probable reserves of 7.7 million tonnes at 2.7 g/t gold for 669,000 ounces.
The new results reveal impressive east-west crosscuts of shallow, high-grade mineralisation between the historical West and North Pits and also includes high grades at the Starlight, Wiluna Queen and Magazine prospects.
At the east-west cross structures, the best intercept featured 16m at 4.41 g/t gold from just 2m below the surface, including 6m at 9.53 g/t. Other good hits were 3m at 7.65 g/t from 78m and 4m at 3.56 g/t from 86m.
At Starlight, high-grade mineralisation was found close to the surface, including 3m at 7.04 g/t from 17m and 6m at 6.0 g/t from 55m.
The latest drilling also hit high-grade Wiluna shear-style sulphide mineralisation at Starlight, with an intercept of 22m at 3.29 g/t from 97m downhole, including 3m at 8.33 g/t. This has defined a new ore shoot, which is open down dip and improves in grade and thickness with depth.
The latest impressive drill results are another boost for Blackham, which is on track to produce between 40,000 and 45,000 ounces in the half year to the end of June after a stunning turnaround in performance of the Wiluna-Matilda project.
With the mill running strongly, the likely addition of substantial new free-milling reserves will be welcome news. The company is confident it can fast-track development of the free-milling ores because the bulk is within the existing mine footprint.
Meanwhile, results from underground drilling that is underway at Golden Age, and a new round of drilling at the adjacent Lake Way pit will throw up even more results that may provide a window of wisdom into just how big Blackham’s Wiluna gold play could become.
By Matt Birney
