Black Hawk pulls more gold at Hoyle Twp.

The second phase of drilling at the Hoyle Twp. project, 15 km east of Timmins, Ont., continues. Operator Black Hawk Mining (TSE) reports 1,734 metres of drilling is now complete in six holes.

The new holes are all stepouts from the mineralization discovered this spring on the V-1, V-2, V-3, and V-4 zones. Black Hawk reported a strike length of 200 metres and a depth extent of 150 metres after the first phase of drilling.

Assays of samples from four holes confirm extensions of the zones to 250 metres along strike and 200 metres vertical depth. The V-1 zone was intersected in all four drill holes, over core lengths of 0.5 to 5.5 metres, with grades ranging from 3.91 to 10.08 grams gold per tonne. The intersections included 0.5-metre intervals grading 19.15 and 34.21 grams per tonne.

The V-2 zone, intersected in three of the drill holes, had apparent widths of 0.8 to 2.8 metres and gold grades of 4.1 to 36.08 grams per tonne. A 2.8-metre intersection grading 7.54 grams per tonne contained an interval half a metre wide grading 37.47 grams per tonne.

One drill hole also intersected the V-4 zone and encountered mineralization grading 2.84 grams gold per tonne over 1.85 metres.

Black Hawk has also started dewatering the workings at its wholly owned Redstone nickel mine, after a 2-week wait for electrical power. Production is still scheduled for October, 1995, at an annual rate of 5 million lb. Costs are not expected to exceed US$3 per lb., and capital costs are expected to be under $1 million.

At Black Hawk’s Keystone Joint Venture, half of which is owned by Granduc Mining (TSE), open-pit production from the Burnt Timber (“BT”) deposit continues to improve, reaching 15,272 oz. in the first half of 1995. Comparable 1994 production was 10,938 oz. Black Hawk credits improvements in recovery (to 89.5%) at the Lynn Lake mill, where a new ball mill has allowed an increased production rate.

The Keystone partners are considering bringing the Farley Lake open pit into production earlier than planned, since all permits are in place and a mine plan is ready. Farley Lake has a higher ore grade and lower waste ratio than BT and therefore production is expected to be higher and operating costs lower.

Black Hawk has also completed its purchase of the Bald Mountain gold-copper project in Maine. It bought the property from Boliden Resources for US$2 million; the vendor retains a 2% net smelter return royalty (NSR), and earlier royalty arrangements bring the total royalties to about 4% of NSR. Black Hawk intends to put the gold-silver zone and the supergene-enriched copper zone into production, and will be seeking permits shortly.