Blackstone cuts wide nickel intercept in southern Norway

Vancouver – Drilling by Blackstone Ventures (BLV-V, BLVKF-O) and joint venture partner Sulfidmalm, a wholly owned subsidiary of Falconbridge (FAL-T, FAL-N), on the Ertelien project in southern Norway has cut a wide interval of significant nickel sulphide mineralization.

Core hole ER2006-06B intersected 19.9 metres (from 290 metres depth) grading 1.9% nickel, 1.76% copper and 0.11% cobalt in a massive sulphide zone. Mineralization is hosted in the Footwall zone consisting of gabbronorites, and surrounding gneisses at its base.

The half-dozen holes completed on Ertelien in the initial program, totaling over 1,700 metres, have all intersected nickel sulphides over varying widths. Mineralization has been traced over 200 metres of strike and to 300-metres vertical depth, indicating two semi-massive to massive sulphide mineralized zones within the gabbronorites and gneisses.

Drilling was near the site of the past producing Ertelien nickel mine, which closed in the early-1900s, and targeted a number of pulsed electromagnetic (UTEM) conductors below the old workings. The Ertelien mine has historic production of about 400,000 tonnes of ore averaging 1.04% nickel, 0.69% copper and 0.17% cobalt.

The joint venture will add a second rig to its drill effort at Ertelien where mineralization is open to the northwest, southeast and down dip.

Blackstone is earning a 50% interest in the property, part of five projects in southern Norway, for expenditures of US$3.5 million by the end of 2006 and US$1.2 million annually in subsequent years provided US$18 million is spent by the end of 2012. It also issued shares to Falconbridge that now holds about 10% of Blackstone’s 48.9 million shares outstanding.