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Gold/Mining/Energy : BLACK HAWK (TSE:BHK) -- Ignore unavailable to you. Want to Upgrade?

To: denis J who wrote (266)	8/4/1999 1:20:00 PM
From: Stephen O	Read Replies (1) \| Respond to of 545

- 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 ______________________________ (c) Market News Publishing Inc. All rights reserved. Tel:(604) 689-1101 Fax:(604) 689-1106 RapidFAX (tm) - To get the NEWS as it happens, call (604) 689-3041. -0- (CMN) Jul/28/1999 8:32