More from Q3 release
Limon-La India Exploration Concession, Nicaragua
Discussions, based on the Letter of Intent signed in June, were
in progress with Newmont Overseas Exploration Limited (a 100%
subsidiary of Newmont Mining Corporation) for the formulation of
an option and joint venture agreement on Black Hawk's Nicaraguan
exploration mineral concessions.
During the quarter, Newmont completed a preliminary three-month
reconnaissance program on the Limon-La India concession designed
to identify specific areas of interest to help focus future
exploration activities.
Manantial Espejo, Argentina
The planned September start-up of the drilling program was
delayed until early October by inclement weather. The program is
now well underway with two objectives: one, to expand existing
geological resources and, two to test new targets. This is in
follow-up to the encouraging results obtained in late 1999.
Approximately 5000m of drilling are planned with the program
expected to be completed by the end of December 2000. Silver
Standard Resources Inc. is the operator and is funding the
exploration to earn 50% of Black Hawk's 80% share in the project.
FINANCIAL POSITION
Black Hawk's financial position improved significantly during the
first nine months of 2000 as total net debt (short and long term
debt less cash and cash equivalents) decreased from $3.8 million
at the end of 1999 to $2.0 million at September 30, 2000. Total
net debt to total net debt plus equity was 12% as of September
30, 2000 as compared to 24% at December 31, 1999.
OUTLOOK
The improvements in ore grade to 9.3 grams per tonne and gold
recovery to in excess of 87% have resulted in a significant
increase in gold production and a reduction in cash operating
cost per ounce at the El Limon mine. As a result, the mine is
expected to produce in excess of 90,000 ounces of gold at a cash
operating cost of less than $170 per ounce in 2000. Black Hawk's
management continues to pursue possible acquisitions and merger
opportunities with an ultimate view of improving shareholder
value.
BLACK HAWK MINING INC. is an international mining and exploration
company that operates the El Limon Mine in Nicaragua, and holds
prospective gold/silver exploration properties in Nicaragua,
Canada, Argentina and the United States. Black Hawk is listed on
the Toronto Stock Exchange under the symbol BHK.
For further information please contact:
Mr. Garth A.C. MacRae
President and Chief Executive Officer
Tel: (416) 365-5657
Mr. Paul D. Caldwell
Controller and Secretary
Tel. (416) 363-6526
Email: info@bhkmining.com
Website: www.bhkmining.com |
