Niblack cuts more massive sulphides in Alaska

Vancouver – Step-out drilling by Niblack Mining (NIB-V, NBLKF-O) has delivered further massive sulphide intercepts from the Lookout zone at its Niblack project on Prince of Wales Island in southeastern Alaska.

Core drilling tested under-explored sections of the Lookout zone about 150 metres down-dip of the main sulphide trend. Hole LO-189, a 30-metre step-out from previous hole LO-181, cut 5 metres (from 192-metres depth) of high-grade massive sulphides running 9.9 grams gold per tonne, 139 grams silver per tonne, 4.9% copper and 15.4% zinc. The section was within a wider 16.8-metre interval of 3.3 grams gold, 53 grams silver, 2.4% copper and 4.9% zinc.

Another hole, LO-188, drilled about 45 metres down dip from LO-189 also intersected the gold-rich massive sulphides returning a 12-metre interval averaging 4.5 grams gold, 46 grams silver, 2.4% copper and 0.7% zinc.

Niblack has put 32 drill holes (about 8,200 metres) on the project this year, mostly focused on expanding the Lookout zone. Mineralization occurs as volcanogenic massive sulphides (VMS) and in stringer zones. Lookout, a deeper sub-parallel trend to the main sulphide trend, remains open in all directions.

The company also plans an underground exploration program and has recently completed a 1.5-km road from tidewater to the future portal face. Scheduled to commence in 2007 upon receipt of final permits, the underground program will test deeper sections of favourable stratigraphy in the Lookout zone.

Mineralization was first discovered at Niblack in the late-1800s and saw some small-scale mining from 1905-to-1908 with about 45,000 tonnes of material grading about 5% copper extracted. The projects hosts a pre-National Instrument 43-101 inferred resource of 2.5 million tonnes of 3 grams gold, 40 grams silver, 1.7% copper and 3.2% zinc.

Shares of Niblack got a significant boost on the high-grade core, jumping 15 or about 25% to the 77-level on strong volume.

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