Reserves double at Black Hawk’s Minago nickel

Drilling by Black Hawk Mining (TSE) has more than doubled reserves at the company’s 100% owned Minago nickel project in Manitoba. The 17-hole, 27,000-ft

program has increased reserves from four million tons grading 1.28% nickel to 8.24 million tons grading 1.29% nickel.

Preliminary and possible reserves in the Main zone total five million tons grading 1.28% nickel. Reserves in the South zone are estimated at 2.47 million tons grading 1.33% nickel with another 710,000 tons in the Northeast zone assaying 1.23% nickel, Black Hawk says.

Black Hawk is continuing to drill on the site with three rigs. On-going work will include a deep hole to test the South zone at a depth of 1,800 ft. and the Main zone at 2,200 ft. A second deep hole has been spotted to intersect the Main zone at 2,400 ft.

Nickel mining shares have been hard hit by weakness in nickel prices which have drifted lower to around US$3.50 today, Jan. 17. Despite the decline in prices, Black Hawk feels the Minago deposit has the potential to support an economically viable mining operation at prices $3-4 per lb.

The deposit has good widths that would allow for low-cost mining. Also, metallurgical work suggests recoveries around 80% capable of yielding a concentrate grading 20% nickel. The project is also near a road and hydro power lines.

Following the completion of the deep drill program by late February, the company will assess the data, Garry Hughes, president of Black Hawk, told The Northern Miner. The 3-month assessment period will be followed by a decision to go underground via a shaft or decline ramp, Hughes said. The choice of shaft or ramp will depend on results from the deep drilling program.