The property is 14 miles southwest of Perth, Ont. Black Hawk can earn a 55% interest in the property by spending $1.25 million before September, 1991. To date about $375,000 has been spent.
The companies say the objective of the current program is to prove up enough high grade material — (8-12% graphite carbon (Cg) — to depths of 100 ft that can be mined by open pit. On one of seven induced polarization (IP) a nomalies tested on the property, the partners have outlined a drill-indicated tonnage of 75,000- 100,000 tons at an average grade of 8-10% Cg. The tonnage was calculated over a 300- ft strike length.
The best drill results from the IP anomaly are as follows:
Width Grade Hole Section (ft) (%Cg) 21 24+00E 22.5 12.1 34 25+00E 10.5 10.8 27 25+00E 28.5 9.9 37 26+00E 8.5 11.0 26 .5 12.5 42 26+50E 4.5 14.2 46 26+50E 50.5 8.2
The best results from drilling of another IP anomaly on the property were 29.5 ft of 11.2% Cg, 10.5 ft of 10.8% Cg, and 8.5 ft of 10.7% Cg. Additional drilling is being done on this zone to establish tonnage.
The companies estimate that at an operating cost of $31.60 per ton including shipping, and a recovery of 92%, a profit of $51.20 per ton could be realized with an average grade of 10% Cg. Graphite prices of 45 cents per pound are anticipated by the companies.
According to Black Hawk an initial reserve of one million tons of open pit material at 10% Cg would justify a 500-ton-per-day operation.
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