Blackham Resources' drilling success delivers confidence and gold ounce upgrade at Matilda

Blackham Resources has turned the recent drilling success at the Matilda Gold Project into an increased goljual beli mesin crusher batu bekasd resource, and importantly have added to the confidence categories.

Matilda now hosts 790,000 gold ounces, which is comprised from 12.8 million tonnes at 1.9 grams per tonne gold.

Adding some investor interest to the project is that the Regent deposit (part of Matilda) now has a resource of 3.8 million tonnes at 2.2g/t gold for 270,000 ounces, which includes the higher confidence Indicated component of 738,000 tonnes at 2.5g/t gold.

Blackham’s exploration work is targeting previously defined deposits which are most likely to be converted to reserves in the near term.

Bryan Dixon, managing director, spoke to Proactive Investors today and said that whilst the Regent mining study has not been finalised, "it is clear that since the last mining study was done at Regents in June 2006 the increase in the Australian gold price has outstripped increases in expected mining costs which we believe will have a significantly positive effect on Regent economics.

Resource definition at Regent
The Indicated portion of the resource was defined from reverse circulation and diamond holes around 20 metres by 25 metres or closer, where Blackham said that the continuity of mineralisation was good.

This was confined to the upper portions of the main vertical lode. The Inferred Resource included the areas of the resource where sampling was greater than 20 metres by 25 metres, or mineralisation was defined by limited drilling.

Blackham's mining lease for Regents progressing
The Regent deposit is strategically located less than 10 kilometres south by existing roads from the Wiluna Gold Plant, where Blackham recently applied for a mining lease over the deposit.

Dixon added, "The Regents mining lease was applied for just over a month ago we are still working towards an expected grant date.

"With this deposit located just 9 kilometres by existing roads from the Wiluna Gold Plant, Blackham is keen to fast track the grant of the mining lease as quickly as possible."

Regent blue sky potential identified in 2006
It is also worth noting that previous owners of the Regent deposit looked at the economics of mining the deposit by open pit methods, and it was last assessed in June 2006 and it was concluded it was likely to be economic above a gold price of A$700 per ounce.

This has the potential to deliver a very big upside for the company if mined, considering if the current gold spot price of around A$1600 is maintained as an average into the medium term.

Blackham plans to re-assess the economics of an open pit under current gold price and cost parameters, with management also of the opinion there is potential for exploiting the down plunge extension of the resource by underground mining methods.