Black Pearl denied drill depths and loses market ground

Black Pearl Minerals (BLK-V) saw its shares tumble after announcing what results it had from two drill holes that were unable to reach down to their targeted depths at its Four Metals Polymetallic project in Arizona.

The Vancouver-based company saw its shares come off roughly 25% or 9 to 26 on 2.1 million shares on the disappointing news.

The company blamed difficult ground conditions for the early abandonment.

And while the targeted zones werent reached, the holes were by no means barren.

Hole FM 07-03 was abandoned at roughly 190 metres, but hit a mineralized zone characterized by a chalcocite blanket. The hole was highlighted by an intersect of 9 metres grading 0.65% copper.

The hole also entered a breccia pipe zone at 162 metres and returned 0.056% molybdenum over 13.5 meters and 0.49% copper and 0.037% molybdenum over 14.3 metres.

The final four samples assayed 0.88% copper and 0.035% molybdenum over the final 5.32 metres.

The second hole — FM 07-06 — returned 0.56% copper and 0.021% molybdenum from 27 meters of the chalcocite blanket. The hole was abandoned at 113 meters in primary chalcopyrite mineralization before it hit what historical underground drilling had indicated to be a higher grade zone.

The compay still plans to complete another 1,200 metres of drilling.

Best assays from historical drilling at the site include 55 metres grading 1.84% copper and 0.122% Molybdenum, and 40 metres grading 1.77% copper and 0.032% molybdenum.

A non-compliant resource estimate in 1996 put reserves at 21.41 million tonnes grading 0.58% copper with a 0.29% copper cut-off grade and estimated that an open pit configuration would have a low waste to ore ratio of 0.93 to 1.

Four Metals Polymetallic is located in southern Arizona, near the border town of Nogales. The company announced it was acquiring the property in early April.

Black Pearl can earn a 100% interest over five years by paying US$250,000, spending a further US$1.25 on the property and issuing 1 million shares. The option is subject to a 3% net smelter return, of which 1.5% can be bought for US$3 million.

The company also announced it has mobilized heavy equipment at its Ferro/Wekusko gold property near Snow lake in Manitoba.

The company will be using the gear at the Gold Dust zone to remove and process 9,110 tonnes as a bulk sample for metallurgical and grade continuity testing.

Mining operations are slated to start in late may or June.