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Blackham Resources Ltd (BKHRF) Wiluna High Grade Free Milling Mineralisation Extended Further

Press Releases2018-06-20
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Blackham Resources Limited (ASX:BLK) (OTCMKTS:BKHRF) (Blackham or the Company) is pleased to present final results from the Wiluna free milling drill programme. During March'18 to May'18, Blackham's exploration team drilled 133 RC holes (11,612m) focused on delineating further free milling open pit reserves over the 3.7kms of strike at the Wiluna Mine. The results reported are from the final 66 holes received (5,326m). All Wiluna Mine drilling assays have now been received and will be incorporated into Blackham's next resources and reserves update anticipated in the September '18 quarter.

This is a follow up programme to the 77,000m of drilling completed during 2017, which successfully delivered probable reserves of 669,000oz (7.7Mt @ 2.7g/t Au) within Wiluna open pit cutbacks. The A$1,600 Au/oz pit optimisations shown below were completed immediately prior to the latest drilling, and confirm the potential for open pit cutbacks and new free milling open pits to be developed at the Wiluna mine site. These latest drilling results are expected to support substantial increases to open pit resources and reserves within open pits.

Highlights

- Latest drilling extends shallow oxide and transitional mineralisation close to the Wiluna CIL plant.

- Wiluna oxide and transitional ores scheduled to feed the Wiluna CIL plant in 2018 with strong recovered grades.

- Mining studies well advanced on the Wiluna free milling starter pits.

- Wiluna free milling resource and reserve updates to be completed in September '18 quarter.

East-West Cross Structures - High grade free-milling mineralisation confirmed near surface:

20m @ 4.84g/t from 5m incl. 9m @ 8.76g/t 97g*m WURC0622

19m @ 3.52g/t from 3m incl. 2m @ 10.63g/t 67g*m WURC0623

22m @ 2.97g/t from 11m incl. 7m @ 5.90g/t 65g*m WURC0619

14m @ 4.23g/t from 16m incl. 7m @ 7.66g/t 59g*m WURC0627

22m @ 2.38g/t from 3m 52g*m WURC0617

13m @ 3.58g/t from 48m incl. 3m @ 5.30g/t 47g*m WURC0630

15m @ 2.70g/t from 32m 41g*m WURC0624

19m @ 2.00g/t from 40m 38g*m WURC0625

Happy Jack - High grade free milling mineralisation confirmed around existing pit:

19m @ 6.36g/t from 35m 121g*m WURC0598

7m @ 7.62g/t from 35m 53g*m WURC0585

8m @ 4.65g/t from 112m & 10m @ 7.93g/t from 136m 117g*m WURC0603

12m @ 2.29g/t from 122m, 9m @ 6.83g/t from 147m 99g*m WURC0589

8m @ 2.30g/t from 2m, 23m @ 1.59g/t from 18m & 20m @ 8.70g/t from 72m 229g*m WURC0602

Bulletin and Essex - High grade deeper intercepts show potential for oxide and sulphide pit cutbacks:

6m @ 3.81g/t from 103m incl. & 13m @ 1.95g/t from 127m 48g*m WURC0600

11m @ 2.23g/t from 19m 25g*m WURC0605

Current drilling is focused on free milling ores above the top of fresh rock (generally top 60-80m) that metallurgical test work has confirmed are viable feed sources for the Wiluna CIL plant, with average leach recoveries on the oxide and transitional ores being 90.8% and 84.3%, respectively, after 24 hours.

The Blackham management team believes the free milling ores within the existing Wiluna Mine footprint are an attractive feed stock for the currently operating mill and allows for fast-tracking mining approvals.

East-West Cross Structures Pit

Broad zones of shallow high grade mineralisation have been intersected surrounding the modelled East-West pit cutback, in Blackham's newly discovered cross structure zones that were not mined by previous operators. Better intercepts include:

20m @ 4.84g/t from 5m incl. 9m @ 8.76g/t 97g*m WURC0622

19m @ 3.52g/t from 3m incl. 1m @ 5.27g/t & 3m @ 5.62g/t & 2m @ 10.63g/t 67g*m WURC0623

22m @ 2.97g/t from 11m incl. 7m @ 5.90g/t 65g*m WURC0619

14m @ 4.23g/t from 16m incl. 7m @ 7.66g/t 59g*m WURC0627

22m @ 2.38g/t from 3m incl. 1m @ 7.10g/t & 1m @ 7.76g/t & 1m @ 6.48g/t 52g*m WURC0617

13m @ 3.58g/t from 48m incl. 3m @ 5.30g/t 47g*m WURC0630

15m @ 2.70g/t from 32m incl. 1m @ 5.89g/t & 1m @ 6.95g/t 41g*m WURC0624

19m @ 2.00g/t from 40m 38g*m WURC0625

The shallow high grade mineralisation is likely to be mined at a relatively low strip ratio and low mining cost, and consequently Blackham is fast tracking approvals with a view to mining this cutback in the December '18 quarter.

Happy Jack Pit

Infill drilling at the Happy Jack pit has delivered further high grade oxide and transitional intersections and enhanced confidence in the resource model interpretation. The potential for increased sulphide resources was also highlighted by several holes that extended into the deeper fresh rock. Better results include:

19m @ 6.36g/t from 35m 121g*m WURC0598

7m @ 7.62g/t from 35m & 9m @ 1.99g/t from 111m 71g*m WURC0585

8m @ 4.65g/t from 112m & 10m @ 7.93g/t from 136m 117g*m WURC0603

12m @ 2.29g/t from 122m, 3m @ 4.97g/t from 138m & 9m @ 6.83g/t from 147m 104g*m WURC0589

8m @ 2.30g/t from 2m, 23m @ 1.59g/t from 18m & 20m @ 8.70g/t from 72m 229g*m WURC0602

Drilling was also completed around the Adelaide, Moonlight, Essex and Bulletin pits with moderate tenor results received (see Table 1 in link below for full list of results). Cutbacks on these pits also appear viable and are being assessed for future mining. Best results were:

6m @ 3.81g/t from 103m incl. & 13m @ 1.95g/t from 127m 48g*m WURC0600

11m @ 2.23g/t from 19m 25g*m WURC0605

Further drilling is planned to close out open-pit mineralisation ahead of finalising mine designs for the free milling starter pits. Blackham's next resources and reserves update will incorporate these results and is expected to be completed in the September '18 quarter.

Blackham management are currently fast tracking pit designs and approvals to mine the high-grade East West Cross Structures and Golden Age North pits (see ASX release dated 12th June 2018 for Golden Age drilling results) in the December'18 quarter.

To view tables and figures, please visit:
http://abnnewswire.net/lnk/A2DS9525

Milan Jerkovic
Executive Chairman
T: +61-8-9322-6418 

Bryan Dixon 
Managing Director
T: +61-8-9322-6418

Jim Malone
Investor Relations
T: +61-419-537-714

Chantelle O Sullivan
Media Relations
Citadel-MAGNUS
T: +61-8-6160-4900



News Provided by ABN Newswire

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The news, reports, views and opinions of authors (or source) expressed are their own and do not necessarily represent the views of CRWE World.


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