Black Hawk Mining (TSE) is moving to boost its nickel reserves by earning 50% of All-North Resources’ (VSE) interests in a group of four properties in the Kluane area of southwest Yukon.
Toronto-based Black Hawk has signed a letter of intent to option All-North’s wholly owned Wellgreen nickel property which contains an estimated 50 million tonnes of grade 0.36% nickel, 0.35% copper, 0.4 grams (0.015 oz.) platinum and 0.4 grams (0.01 oz.) palladium per tonne. Black Hawk is also proposing to earn a half interest in the adjoining Arch and Linda properties, which are owned 40% by All-North, as well as the Canalask property 90 km to the northwest of Wellgreen. All-North holds a 100% stake in Canalask.
Subject to a 30-day due diligence review and regulatory approval, Black Hawk has agreed to pay All-North $626,000 in cash, 100,000 common shares and spend $625,000 on exploration by Dec. 31, 1999. Black Hawk is required under the agreement to spend at least $50,000 on the properties by the end of 1993. Upon exercising the option, Black Hawk would then have six months to decide whether to buy out All-North’s 50% stake in the properties for $1.5 million. Black Hawk Chairman Gordon Bub said the agreement is in keeping with his company’s desire to acquire and develop nickel reserves. For instance, it has until the end of 1992 to complete a feasibility study on the Knox nickel deposit in Maine where minable reserves stand at 2.5 million tonnes grading 1.39% nickel and 0.63% copper. After a year in production, Wellgreen was suspended in 1973 due to falling metal prices and excessive dilution.
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