When your biggest problem is that you cant find a piece of un-mineralized ground to place your waste dump you know you’re on a winner in the gold mining business.
Such is the case at Blackham Resources Matilda Mine prospect in Wiluna.
In attempting to drill sterilize a piece of ground in readiness for their impending waste dump, the company recently discovered yet another gold mineralized zone – and it runs for 600m.
With results that include 16m @ 0.61 g/t from 32m and 16m @ 1.16 g/t the new mineralized zone runs between the M4 and M10 pits at the Matilda Mine prospect.
Blackham also discovered a new high grade shoot immediately north of the M6 pit that was mined in the 1990’s in their latest round of drilling.
Results include 20m @ 1.81 g/t gold, 5m @ 4.04g/t from 15m and 7m@4.71g/t from 42m including 2m @ 11.9g/t from 44m.
Infill drilling at the M10 East shoot also produced good results that included 9m @2.78g/t from 19m, 3m @ 2.62g/t from 50m & 2m @ 2.13 g/t gold from the 57m mark.
It seems that almost every time Blackham put a hole into almost any of their dozen or so prospects that make up the Matilda project, it turns to gold.
Canaccord Genuity this week put a price target of 75c a share on Blackham Resources, almost twice their current share price and given that the company intends to release their long awaited DFS this week, it is looking like a watershed moment for them.
In attempting to predict the results of the DFS, Canaccord are estimating that Blackham will EBIT $41.6m in FY17 and a whopping $91.4m in Fy18.
With production just around the corner this is now looking realistic.
