Black Hawk M: Record 1998 Gold Production 3/30/99 10:1
BLACK HAWK MINING INC ("BHK-T;BHKMF-L")
- Record 1998 Gold Production
BLACK HAWK MINING INC. is pleased to announce its 1998 production
results from its two operating mines and its reserves and resources at the
1998 year end.
All dollar amounts are stated in US dollars, unless indicated
otherwise.
Total production for the year was a record 88,855 ounces, with 59,647
ounces from the Keystone operation in Manitoba and 29,208 ounces from the
El Limon Mine in Nicaragua, during the seven-month period following the
acquisition by Black Hawk on May 31, 1998. The consolidated 1998 cash
operating cost of production was $230 per ounce.
Keystone Gold Mine in Manitoba processed 473,652 tonnes compared to
449,028 tonnes in 1997. The average grade was lower in 1998, as
anticipated, at 4.14 grams per tonne, compared to 5.19 grams per tonne in
1997, resulting in total production of 59,647 ounces in 1998, a decrease of
7,420 ounces from 1997. The cost per tonne milled increased 2.4% to $27.96
in 1998 from $27.30 in 1997. The cash operating cost per ounce for 1998 was
$225, compared to $183 for 1997. The increase per ounce was primarily due
to the lower grades milled during 1998.
El Limon Mine in Nicaragua produced 29,208 ounces at a cash operating
cost per ounce of $240 for the seven month period following the May 31,
1998 acquisition of the mine. Record production for the full year 1998, of
49,658 ounces at a cash operating cost per ounce of $253 was achieved even
though production was interrupted for almost five weeks in late October as
a result of flood damage caused by Hurricane Mitch. Described as a
"thousand year storm," it dropped 1.4 meters of rain in the region of the
mine during a four-day period. The average grade for the full year was 5.97
grams per tonne, compared to 5.60 grams per tonne in 1997. Gold production
in 1998 was 51% from open pit and 49% from underground mining. Commencing
in the fourth quarter 1999, production will be exclusively from
underground.
The Company's reserves and resources at year end 1998 adhere to the
categories, definitions and guidelines for public reporting recommended by
the Canadian Institute of Mining, Metallurgy and Petroleum and published in
September 1996. Specifically, the definitions are as follows:
A reserve is that part of a resource which can be mined at a profit
under current or reasonably anticipated economic conditions which are
specified. In addition to the information required for a resource estimate
technical, operating, legal and financial factors must be considered in a
reserve estimate.
A mineral resource is a deposit or concentration of minerals for which
there is sufficient sampling information and geologic understanding to
outline a deposit of current or potential economic merit.
A summary of ounces of gold reserves and resources at year end 1998
for Black Hawk include:
//st
Reserves Ounces
Proven, Probable and Possible
El Limon Mine 394,300
Keystone Gold Mine 58,600
Bald Mountain (gold equivalent) 154,500
Subtotal 607,400
Resources
El Limon Mine 325,900
Lynn Lake 208,200
Manantial Espejo (gold equivalent) 1,558,000
Limon-La India 541,300
Hoyle Township 459,700
Sulphurets (gold equivalent) 297,800
Subtotal 3,390,900
Total 3,998,300
//et
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.
TEL: (416) 363-4813 Mr. Blois Hennigar, Vice President, Finance and
Chief Financial Officer
TEL: (416) 216-3536 Ms. Angela Cooper, Corporate Secretary
Website: www.bhkmining.com
E-mail: info@bhkmining.com
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-0- (CMN) Mar/30/ 99 10:01
Added by me Stephen O
Total reserves in 1997 Annual report were 631,800 ozs.
Total resources in 1997 were 1,626,700 ozs.
Total reserves + resources in 1997 were 2,258,500 ozs
The increase in 1998 is therefore 1,739,800 ozs, a 77% increase.
Also the Sulphurets reserve has been conservatively reclassified as a resource and the reserves number has only declined 24,400 ozs.
For a market cap of $20 million Cdn, BHK @ 17c a share, the total of reserves + resources is valued at only $4.90 Cdn per ounce and the reserves are valued at $32.70 Cdn per oz. At a cash operating cost of $230 an ounce , right now they are making a cash operating profit of $50 an ounce. |
