U.S. REPORT Nickel deposit in Maine is feasible says Black Hawk

Results from a feasibility study on the Knox nickel-copper project in Maine indicate that the deposit could be developed at a capital cost of US$40 million and mined at an operating cost of US$1.90 per lb. (US$23 per ton).

At nickel prices of US$3.50 per lb., these costs would leave 100% owner Black Hawk Mining (TSE) with an estimated 12.3% rate of return on invested capital, said Chairman Gordon Bub at the recent annual meeting.

With fully diluted, probable reserves of 2.55 million tons grading 1.39% nickel and 0.63% copper, Knox is Black Hawk’s most advanced project.

As soon as the state of Maine has finalized its new mining regulations, probably before the end of the second quarter, Black Hawk will begin the permitting process for the deposit, Bub said.

Meanwhile, Black Hawk is discussing a joint venture on the Minago nickel project in northern Manitoba with two major mining companies. Recently, Black Hawk confirmed the continuity of the mineralized zones at Minago with a $1-million drilling program.

The latest reserve estimate for the Manitoba property is 11.6 million tons (possible and probable) grading 1.19% nickel to a vertical depth of 1,800 ft.

At Black Hawk’s only grassroots nickel property, the Big Bend near Kirkland Lake, Ont., the first two holes have been disappointing. “If the next hole misses we’ll probably drop the option,” said Bub.