- Increase Of Reserves For Talavera Sur Zone At El Limon
BLACK HAWK MINING INC. (TSE-BHK) is pleased to announce a reserve
update for the Talavera Sur zone at its producing El Limon Gold Mine in
northwestern Nicaragua, Central America. In August 1998, Black Hawk
announced the discovery of the Talavera Sur zone and additional information
on the exploration activity of the zone was disclosed in September and
December 1998.
INCREASE OF PROVEN AND PROBABLE RESERVES
As a result of additional drilling, the proven and probable reserves
for the Talavera Sur zone, as of May 31 1999, were increased by 46% from
December 31,1998 levels, resulting from the upgrade of probable and
possible reserves. This change represents an overall increase of 10% to the
December 31, 1998, total proven and probable reserves for the Limon Mine.
Talavera Sur reserves were also reviewed assuming a long-term gold price of
$260 per ounce to reflect the recent drop in bullion prices.
//st
Gold Price Cut-off Reserve Tonnes Gold Contained
Per Ounce Grade Category Grade Gold
g/t g/t Ounces
US$300 5.90 Proven & Probable 315,337 13.23 134,138
Possible 24,517 14.87 11,721
US$260 6.23 Proven & Probable 308,363 13.39 134,138
Possible 24,517 14.87 11,721
//et
The Talavera Sur reserve update was completed by Limon Mine staff
using geological and gold assay information from 170 metres of underground
development on the 160 and 190 levels, and from 59 diamond drill holes.
Reserve blocks were estimated for the vein on long section using the
polygonal approach. High-grade gold assays were cut to 65 grams per tonne.
Talavera Sur reserves extend over a 300 metre strike length and 130
metres vertically with an average true width of 3.93 metres. This
epithermal quartz vein is open to depth and to the southwest.
STOPE PRODUCTION STARTED AT TALAVERA SUR
Production from the first stope block in Talavera Sur started eight
weeks ahead of schedule on June 10, 1999. The close proximity of Talavera
Sur to the active workings of the Talavera underground operation has
allowed for rapid development of reserve blocks between the 160 and 190
mine levels.
ADDITIONAL DRILLING RESULTS
Additional drill results subsequent to the reserve calculation for the
Talavera Sur presented above are summarized in the following schedule. The
latest program was initiated to upgrade the possible reserves to the
probable category and to test the southwest extension of Talavera Sur. No
cut off has been applied to high-grade assays. Hole 2490 encountered a
second intersection consisting of 9.62 metres of 12.06 g/t Au located
between the main mine workings and the southwestern extension of Talavera
Sur. Drilling is ongoing to test the continuity of this new intersection as
well as the extension of Talavera Sur.
//st
Drill Section Mine From To Inter- True Gold
Hole Level (m) (m) cept Width Grade
# Length (m) (g/t)
(m)
Talavera Sur Zone
2482 11410E Hole abandoned due to drilling problems
2484 11410E 225 113.70 124.10 10.43 6.88 12.19
2485 11410E Hole abandoned due to drilling problems
2487 11110E 220 151.28 155.24 3.96 Pending 1.90
2488 11140E 222 143.25 147.22 3.97 Pending 0.49
2490 11050E 208 200.94 209.35 8.41 Pending 7.01
Second Zone
2490 11050E 195 158.19 167.81 9.62 Pending 12.06
//et
CONTINUING EXPLORATION
A structural geological study of the vein and fault systems in the
Limon mining district including in and around areas of active mining was
completed during the second quarter by ERA-Maptec Ltd. of Ireland,
consultants in structural geology. The increased understanding of the
structural geology of the productive gold veins is helping the Company to
further focus and prioritize its ongoing exploration efforts.
NOTES: 1. All reserve and resource estimates at Limon adhere to the
Canadian Institute of Mining, Metallurgy and Petroleum categories,
definitions and guidelines. These new reserve estimates were internally
audited by Black Hawk's Vice President of Exploration, M.B. Gareau, P.Geo.
Steffen Roberston and Kirsten (U.S.), Inc. completed, in February 1999, an
independent audit of the Limon Mine year-end reserves and resources and
found that the estimation methodology follows industry standard practices
and that the resulting estimates were acceptable.
2. All analyses are conducted using industry standard fire assaying
techniques at the Company's El Limon Mine laboratory. External check
assaying of the mine laboratory's performance is conducted separately by
the laboratory manager using Lakefield Reasearch Limited of Lakefield,
Ontario, and by the exploration staff using ACME Analytical Laboratories
Ltd. of Vancouver, British Columbia. Both ACME and Lakefield are
independent commercial laboratories.
Black Hawk Mining Inc. is a Toronto-based natural resource company
engaged in mining, exploration and development of mineral resource
properties in North, Central and South America.
For further information please contact:
TEL: (416) 363-4810 C. Thomas Ogryzlo, P. Eng. President & CEO
TEL: (416) 363-6268 Michael B. Gareau, P. Geo. VP, Exploration
Internet: www.bhkmining.com E-mail: info@bhkmining.com
______________________________
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-0- (CMN) Jul/28/1999 8:32
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