Feasibility study on Manantial Espejo gold project
Black Hawk Mining Inc BHK
Shares issued 83,207,868 Sep 8 close $0.195
Wed 9 Sept 98 News Release
Mr. C. Thomas Ogryzlo reports
Black Hawk Mining has entered into an agreement whereby Silver Standard Resources Inc. and Global Explorations Corporation may acquire a 40 per cent 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 per cent of the Manantial Espejo project and a subsidiary of Barrick Gold Corporation owns the remaining 20 per cent. Upon completion of a feasibility study, Barrick must elect to either sell its remaining 20 per cent interest to Black Hawk or increase its interest to 40 per cent. 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 per cent interest in Black Hawk's interest through cash payments of $1.5-million (U.S.) and exploration commitments together totalling $6.0-million (U.S.) by Dec. 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 in Santa Cruz, a region in southern Argentina of recently discovered epithermal precious metal mineralization. The project covers 225 square kilometres 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
Au Au
Metric Grade Content
Deposit Tonnes (g/t) (oz)
Maria (measured/
indicated) 4,680,000 2.82 424,360
Maria (inferred) 1,693,000 1.89 102,886
Concepcion 356,000 3.3 37,775
Karina-Union 1,193,000 4.3 164,949
Total 7,922,000 2.87 729,970
Manantial Espejo Resource Summary
Ag Ag
Metric Grade Content
Deposit Tonnes (g/t) (oz)
Maria (measured/
indicated) 4,680,000 142 21,368,489
Maria (inferred) 1,693,000 165 8,982,154
Concepcion 356,000 268 3,067,781
Karina-Union 1,193,000 316 12,121,801
Total 7,922,000 191 45,540,225
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 per cent 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.
c Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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