Blackham grows gold resources

Blackham Resources (ASX:BLK) owns and operates the Western Australian-based Matilda gold project which has been rapidly brought into production over the past 18 months and is expected to produce more than 50,000 ounces of gold in FY17 and be profitable.

Blackham's production profile is moving to +100,000 ounces in FY18 (at all in sustaining production costs well below current spot gold prices) and its resource base continues to grow with further drilling, but presently sits at +6 million ounces.

Its share price bounced in January following a period of underperformance with the uptick being driven by a change in sentiment toward the gold sector as the gold price has rallied in the new world of President Trump.

We believe Blackham represents good value against its peers at these levels and it remains a key holding of the OC Micro-Cap Fund.