BLACK HAWK MINING INC ("BHK-T;BHKMF-L") - Second Quarter Production
Results Ended June 30, 2000 - And An Update On The Company's Bank Debt
BLACK HAWK MINING INC. announces second quarter production results ended June
30, 2000 and an update on the Company's bank debt.
OPERATING RESULTS
Black Hawk produced and sold 52,903 ounces of gold during the first six months of 2000 at
a cash operating cost of $186 per ounce of gold. The El Limon mine produced 42,592 ounces
and Keystone Gold Mine produced 10,311 ounces. Gold production during the second
quarter of 2000 was 25,778 ounces at a cash cost of $166 per ounce as compared with
29,279 ounces at a cash operating cost of $237 in the comparable period of 1999.
Three Months Six Months
Ended June 30 Ended June 30
2000 1999 2000 1999
Gold Production (ounces) 25,778 29,279 52,903 57,222
Cash Operating Cost per
Ounce $166 $237 $186 $230
EL LIMON MINE During the first six months of 2000, El Limon produced 42,592 ounces of
gold at a cash operating cost of $175 per ounce as compared with 30,486 ounces of gold at a
cash operating cost of $233 per ounce for the same period in 1999. The 40% increase in gold
production was due to an increase in the mill grade and higher recoveries. These factors were
partly offset by a reduction in mill throughput. The 25% decrease in cash operating costs
during the first half of 2000 was due to increased gold production, partly offset by the
increased percentage of higher cost underground production.
During the second quarter gold production at El Limon Mine was 23,848 ounces at a cash
operating cost of $159 per ounce as compared with 15,543 ounces at a cash operating cost
of $246 per ounce for the 1999 second quarter. The improvement in production and costs
was due primarily to an increase in the grade as the majority of the mill feed was from the
higher-grade underground operations.
El Limon Production Summary
Three Months Six Months
Ended June 30 Ended June 30
2000 1999 2000 1999
Ore Milled (tonnes) 84,084 90,634 169,117 180,227
Average Ore Grade
(grams of gold /tonne) 10.2 6.3 9.0 6.3
Recovery (%) 88.2 84.4 86.2 83.3
Gold Production (ounces) 23,848 15,543 42,592 30,486
Cash Operating Cost per
Ounce $159 $246 $175 $233
KEYSTONE GOLD MINE The Keystone Gold Mine produced a total of 10,311 ounces of
gold during the first four months of 2000 at a cash operating cost of $232 per ounce. There
was no mining activity during 2000. All gold production came from stockpiled ore. In April,
the stockpile of ore was exhausted, and mill mothballing procedures were initiated. It is Black
Hawk's intention to keep the Lynn Lake milling facility on a care and maintenance basis
pending future improvements in the gold price and the possible re-establishment of mining
operations in the district. In the comparable period of 1999, production was 26,736 ounces of
gold at a cash operating cost of $226 per ounce.
Keystone Production Summary
Three Months Six Months
Ended June 30 Ended June 30
2000(1) 1999 2000(1) 1999
Ore Milled (tonnes) 18,270 121,504 93,056 229,073
Average Ore Grade
(grams of gold /tonne) 2.5 3.8 2.6 3.9
Recovery (%) 90.5 92.0 91.0 91.3
Gold Production (ounces) 1,930 13,740 10,311 26,736
Cash Operating Cost per
Ounce $257 $228 $232 $226
(1) Keystone ceased milling operations in April.
UPDATE ON COMPANY'S BANK DEBT The Company and Standard Bank London
Limited have entered into an amended loan agreement with respect to a US$1.85 million
credit facility. The original facility was entered into in December 1996. The term of the loan
has been extended to June 30, 2001 subject to further extension to July 31, 2002 if certain
conditions are satisfied. The interest rate is increased by 1 per cent to LIBOR plus 2.75 per
cent and the Company has agreed to make principal payments of US$75,000 per month.
Additional security has been pledged by the Company. The transaction is expected to close
on or before July 31, 2000.
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. TEL: (416) 365-5657 Mr. Garth A.C.
MacRae, President and CEO TEL: (416) 363-6526 Mr. Paul D. Caldwell, Controller and
Secretary Email: info@bhkmining.com Website: www.bhkmining.com
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