(MENAFN- ProactiveInvestors - Australia) Blackham Resources (ASX: BLK) has begun the first stage of a large, 30,000 metre drilling campaign at the Matilda Gold Project following the arrival of the first of two reverse circulation rigs.
The new drilling campaign was facilitated by a recent $13.32 million funding package, which includes a placement at a 37% premium, with a private company controlled by leading mining industry entrepreneur Joseph Gutnick â€" who has been appointed Blackham chairman.
Drilling will test the infill and extension targets at the Matilda and Williamson Gold Mines.
Significantly, this is the first program conducted at Williamson since Blackham acquired the project and following the successful rehabilitation of the Williamson access road.
Blackham has identified numerous potential extensions beneath the existing open pit, illustrated by historical holes such as one that returned 3.5 metres at 35.5 grams per tonne (g/t) gold about 300 metres vertically beneath surface.
The company is currently updating the Williamson Resource which will further assist targeting of high grade extensions beneath the pit.
The program will also be testing infill and extension targets at the Matilda Gold Mine.
Blackham had significant success in its last program drilling beneath the M4 pit at Matilda, returning thick and high grade intercepts of 10 metres at 5.47g/t gold from 120 metres, 5 metres at 5.3g/t gold from 125 metres, and 31 metres at 2.32g/t gold from 120 metres.
Drilling will be focusing on the extensions of M4, M1 and M2 as well as testing potential new lodes between the existing pits which, if found to have continuity, may significantly improve the mining economics.
A second reverse circulation drill rig is scheduled to arrive by the end of the week.
Matilda Resource growth
Blackham's goal is to increase the current 1.5 million ounce Resource at Matilda, as well as improve the Resource confidence, which will allow the company to build its gold Reserves.
This is an important step towards future feasibility studies.
Blackham has the largest landholding, over 500 square kilometres, in the Wiluna goldfield and one of Western Australia's major Archaean greenstone belts.
The tenure package covers 50 kilometres of strike along the Wiluna Mine sequence and Coles Shear which has produced over 4 million ounces of gold.
Blackham believes there is significant potential to increase the resources at Williamson.
New chairman Joseph Gutnick
Joseph Gutnick has been a director of numerous mining companies, including Great Central Mines which he built into one of Australia's most successful gold mining companies.
Under his stewardship, Great Central Mines discovered the Plutonic Gold Mine and explored, developed and operated the Bronzewing and Jundee Gold Mines â€" three world-class gold mines that continue to operate today.
Great Central Mines produced over 780,000 ounces of gold per annum at its peak, and also previously owned the Rosemont, Wiluna, and Matilda Gold.
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