Black Hawk ups reserves at Redstone

New reserves have been outlined at the Redstone nickel mine near Timmins, Ont.

Owner Black Hawk Mining (TSE) calculated about 154,600 additional tons following a 25-hole drill program designed to test the downward extension of the known ore zone between 700 and 1,100 ft. The new material averages 4.21% nickel, with a 1% cutoff. After allowing for dilution (30% at 0.2% nickel), proven and probable reserves to the 1,100-ft. level total 200,977 tons at 3.28% nickel. A cobalt value of 0.038% is also reported.

The reserves are significantly higher in grade than those previously mined, and are sufficient to support a 300-ton-per-day operation for at least two years.

The potential also exists to develop additional reserves between the 1,100- and 2,400-ft. horizons, where two holes drilled in 1989 intersected 2.76% nickel across 19.5 ft. and 5.28% nickel across 6.7 ft., respectively. Additional reserves may also be present along the strike of the main ultramafic-dacite contact which hosts the mine.

A feasibility study, permitting and negotiations for milling capacity are under way, with the objective of reopening the mine prior to year-end. Black Hawk owns the mine subject to a 2% net smelter return royalty, to a maximum of $337,500.