Avid market watchers will now start trying to value Blackham Resources in search of that elusive arbitrage as the company hurtles towards production in Wiluna, possibly as soon as next quarter.
The company has firmed up its base load feed for the old Wiluna Gold plant after its latest round of drilling again failed to disappoint.
Results from the latest drilling campaign at the Matilda mining centre, just one of about a dozen that make up the entire Matilda project, yielded a solid hit of 6.8m @ 12.6 grams per tonne gold from the 73m mark at the base of the proposed M10 PFS pit design.
The new shute also extends beyond the current PFS pit design potentially making the proposed M10 pit an underground target.
Drilling below the historic M3 and M4 pits at the Matilda mining centre also showed promise with results such as 1.7m@11.6 g/t gold from just 35m, 24m@1.78 g/t from 83m and a 14m hit @3.26 grams per tonne gold.
The old M1 and M2 pits continue to look like being brought back to life with extended drilling in that area showing 12.6m @ 2.96 g/t from 68m and a 19.3m strike grading 1.66 g/t gold from the 115m mark.
The company says they have gone a long way towards solving historical problems at the Wiluna Gold Mine after adding another 630 000 ounces of base load at the Matilda mining centre which is expected to provide first ore for the mine when it recommences later this year.
Blackham have now finished all drilling that was required to complete its DFS and all eyes are now watching as the company looks set to release its final DFS numbers in the next 8 weeks.
Blackham’s Managing Director, Bryan Dixon said “The Matilda Mine is a very important source of base load oxide ore that we will use to recommission the Wiluna Gold Plant around the middle of the year. The Wiluna Gold Plant has not had a base load oxide feed for many years which gives Blackham a very significant comparative advantage over previous operators.”
“Resource extensional drilling at Matilda, Golden Age and Galaxy is ongoing with a view to growing the mine life further prior to starting production.” Said Mr Dixon.
Despite a significant downturn in the resources industry gold continues to provide profits of around $300 or $400 Australian dollars an ounce for producers which is more than enough to provide solid returns for those still willing to take a punt on companies that are close to production.
By Matt Birney
