Here's more news on another area player (Black Hawk and its Manantial
Espejo project). They JV'd it out to Silver Standard Resources
Inc. and Global Explorations Corporation, possibly because they didn't
have the $$$ to go it alone.
Neil.
=================
BLACK HAWK ENTERS INTO AGREEMENT TO COMPLETE
FEASIBILITY STUDY ON MANANTIAL ESPEJO GOLD PROJECT IN
ARGENTINA
BLACK HAWK MINING INC. (TSE-BHK) is pleased to announce that it
has entered into an agreement whereby Silver Standard Resources
Inc. and Global Explorations Corporation ("Silver Standard
Partnership") may acquire a 40% interest in the Manantial Espejo
silver/gold project in southern Argentina. Silver Standard
Resources Inc. is a long established silver resource company with
exploration projects and regional offices in Australia,
Argentina, Bolivia, the United States, Mexico and Peru and is in
the process of acquiring a majority interest in Global
Explorations Corporation.
A wholly-owned subsidiary of Black Hawk owns 80% of the Manantial
Espejo project and a subsidiary of Barrick Gold Corporation
("Barrick") owns the remaining 20%. Upon completion of a
feasibility study, Barrick must elect to either sell it's
remaining 20% interest to Black Hawk or increase its interest to
40%. The interests of Black Hawk and the Silver Standard
Partnership will increase or decrease pro-rata depending on
Barrick's election. The Silver Standard Partnership has the right
to acquire a 50% interest in Black Hawk's interest through cash
payments of US $1.5 million and exploration commitments together
totalling US $6.0 million by December 31, 2001, and extendable to
2002 under certain conditions.
Based on block and polygonal resource calculations, the Manantial
Espejo project is estimated to host measured, indicated and
inferred resources totalling 7.9 million tonnes with an average
grade of 2.87 grams of gold and 191 grams of silver per tonne.
Using a 1:60 gold/silver ratio, the Manantial Espejo project
contains a preliminary resource of 1.49 million ounces of gold
equivalent.
The Manantial Espejo project is located in the province of Santa
Cruz, a region in southern Argentina of recently discovered
epithermal precious metal mineralization. The project covers 225
km2 and is accessible by road. Manantial Espejo is approximately
100 kilometres west-southwest of the producing Cerro Vanguardia
Mine.
Discovered in 1989, the Manantial Espejo resource has since been
explored by 14 trenches totalling 2,717 metres and 182 diamond
and reverse circulation drill holes totalling 25,683 metres. The
following resource summary is based on Kilborn Engineering
Pacific Ltd.'s block model in its prefeasibility study of the
Maria Deposit and a polygonal resource calculation on the other
deposits prepared by Black Hawk:
Manantial Espejo Resource Summary
Metric Gold Gold Silver Silver Gold Silver
Tonnes Grade Content Grade Content Equi- Equi-
valent valent
Deposit (g/t) (oz) (g/t) (oz) (oz) (oz)
Maria (measured/ indicated)
4,680,000 2.82 424,360 142 21,368,489 780,501 46,830,100
Maria (inferred)
1,693,000 1.89 102,886 165 8,982,154 252,589 15,155,344
Concepcion*
356,000 3.3 37,775 268 3,067,781 88,905 5,334,277
Karina-Union*
1,193,000 4.3 164,949 316 12,121,801 366,979 22,018,714
Total
7,922,000 2.87 729,970 191 45,540,225 1,488,974 89,338,431
* measured, indicated, inferred
Approximately two-thirds of the defined resource is contained in
the Maria Deposit, one of four vein systems that have been
drilled to date within a small portion of the project area. The
Maria Deposit is approximately one kilometre in length and has
been drilled to a depth of up to 200 metres. Some drill
intersections ranged up to 55 grams of gold and 10 kilograms of
silver per tonne over one metre widths. It is open along strike
and at depth. Numerous other vein systems and showings in the
project area require follow-up. Approximately 25% of the project
area has been explored in detail.
The Manantial Espejo project is an advanced stage project with
significant exploration upside. The objective is to complete a
feasibility study and advance the project to production.
Black Hawk Mining Inc. is a gold mining company with two
producing mines; the Keystone Gold Mine in Manitoba and El Limon
Mine in Nicaragua. These two mines are expected to produce a
total of 115,000 ounces of gold in 1998. The company also holds
exploration properties in Manitoba and Nicaragua as well as in
northern Ontario, Maine and British Columbia. Black Hawk is
listed on The Toronto Stock Exchange under the symbol BHK.
For further information, please contact:
David M. Jenkins C. Thomas Ogryzlo
Vice President, Exploration President and Chief Executive
Officer
(604) 684-6463 (416) 363-2911 Ext. 276 |
