Black Hawk inspired by results at Minago

Drilling activity at Black Hawk Mining’s (TSE) Minago project in Manitoba is confirming the nickel deposit extends downdip from the Main zone discovered late last year. Two deep holes collared on the Main zone have intersected significant mineralization below 1,600 ft. Hole B-13 deviated 500 ft. from its original target at 2000 ft., but touched the western edge of the South zone instead. Assays from this hole include 66 ft. grading 1.28% nickel at a vertical depth of 2,500 ft.

Hole B-14, spotted to intersect the Main zone east of the original B-13 target, cut 112 ft. grading 1.35% nickel at 1900 ft. and 125 ft. grading 1.22% nickel at 2,100 ft.

East of the Main zone, however, shallow drilling failed to intersect any significant nickel mineralization.

In addition to the Main zone testing, Black Hawk has also been active on the northeast zone, where possible reserves are estimated at 710,000 tons grading 1.23% nickel. Two holes stepping out from the this zone returned results of 1.02% over 20 ft. and 1.2% over 43 ft.

On the basis of drilling completed to date, preliminary reserves on the Minago property are estimated at 17.8 million tons averaging 1.28% nickel to a vertical depth of 2,400 ft.

According to President Garry Hughes, all of the mineralized zones remain open at depth.

Black Hawk is also encouraged by recent metallurgical work at Lakefield Research, indicating recoveries of 77% with a concentrate grading 29% nickel.

Based on a nickel price of US$4.30 per pound and assuming an 80% recovery, Black Hawk estimates a net smelter return value of US$71 per ton, for a total value of US$1.26 billion.