Blackwolf Copper and Gold posts Niblack resource estimates, Alaska

Blackwolf Copper and Gold Ltd. [BWCG-TSXV; BWCGF-OTC] has posted an updated mineral resource estimation (MRE) for its Niblack property in southeastern Alaska.

The 100%-owned Niblack project, located on Prince of Wales Island in southeast Alaska, hosts high-grade copper-gold-silver-zinc (Cu-Au-Ag-Zn) VMS-style (volcanic massive sulphide) mineralization within a series of felsic volcanic flows and breccias, typically as stringer, semi-massive to massive chalcopyrite and sphalerite-rich replacement-style mineralization, commonly with pyrite. Multiple deposits of both exhalative and replacement-style mineralization occur within a folded prospective horizon of volcanic rocks. Highlights of the updated MRE include the following.

Highlights: Indicated mineral resources are 5.85 million tonnes at 0.94% copper, 1.83 g/t gold, 1.73% zinc and 29 g/t silver and an inferred mineral resource of 210,000 tonnes at 0.93% copper, 1.52 g/t gold, 1.38% zinc and 18 g/t silver from the Lookout and Trio deposits using a US$100/tonne cut-off.

A higher-grade zone comprising multiple, subparallel, interconnected lenses of sulphide mineralization on the Lookout deposit comprising 3.79 million tonnes at 1.06% copper, 2.19 g/t gold, 2.07% zinc and 35 g/t silver in an indicated category using a US$130/tonne cut-off;

Both Lookout and Trio are open along strike and updip/downdip of the mineral resource with significant additional exploration potential across the property.

Other areas of mineralization on the property such as the Niblack mine area and the Dama zones require additional drilling and data validation are required prior to an initial mineral resource estimation and are therefore not included in this MRE.

“Our updated mineral resource estimation includes subsequent rounds of drilling as compared to the previous 2011 mineral resource estimate, as well as cost parameter guidance from current underground operations, in accordance with the new CIM guidelines. The wide nature of mineralization, particularly at the Lookout zone, is potentially amenable to underground bulk mining methods such as long-hole stoping,” said Rob McLeod, president and CEO. “Mineralization at multiple zones is wide open for expansion along strike and downdip and our revised geological interpretation has opened up new areas for discovery on the property. Niblack’s proximity to tidewater with a production-size underground ramp, site infrastructure, including a water treatment facility, positions Niblack as one of the most advanced, largest and highest-grade polymetallic deposits in the Pacific Northwest.”

This MRE represents the first resource evaluation of the Niblack property by the company since the previous estimate conducted by the company (formerly Heatherdale Resources Ltd.) and Niblack Mine Development Inc. in 2011. The updated MRE was completed to incorporate three additional rounds of drilling on the property, to evaluate the potential of including additional resources from other target areas on the property and to reflect current economic parameters.

All indicated and inferred resources were categorized as meeting reasonable prospects for economic extraction by underground methods utilizing a stope optimizer and five-metre-by-five-metre-by-five-metre block model at a US$100 equivalent value cut-off.

The Lookout deposit hosts the majority of mineral resources at Niblack and consists of a northeast-striking, south-dipping body of polymetallic mineralization traced over 700 metres along strike and over 500 metres downdip from surface. Over all, these high-grade lenses comprise a significant portion of the Lookout resource and includes indicated resources of 3,790,000 tonnes at 1.06% copper, 2.19 g/t gold, 2.07% zinc and 35.2 g/t silver at a US$130 cut-off. Current modelling demonstrates that Lookout is open in both directions along strike, downdip and locally up-dip/near surface.

The Trio deposit is located approximately 200 metres northeast of the Lookout deposit and hosts indicated resources of 460,000 tonnes at 1.16% copper, 1.3 g/t gold, 1.75% zinc and 20 g/t silver and inferred resources of 55,000 tonnes at 0.91% copper, 1.2 g/t gold, 1.61% zinc and 18 g/t silver.

In addition to potential expansion of the Lookout and Trio deposits, the Niblack project hosts four other known VMS targets (Mammoth, Dama, Lindsy and the historic Niblack mine site), all with variable amounts of drill testing. Preliminary models were prepared for both the historic Niblack mine site and Dama targets and were reviewed; however, the drilling density on the targets does not currently meet the requirements for resource estimation.

Both the historic Niblack mine site and Dama, which include drill highlights of 7.6 metres of 5.18% Cu, 2.66 g/t Au, 145.1 g/t Ag and 6.53% Zn (Niblack mine) and 19.2 metres of 6.4% Cu, 1.37 g/t Au, 53 g/t Ag and 3.2%t Zn (Dama), are considered high-priority targets for future drilling campaigns that could potentially add to the resource base.

In addition, there is strong potential for new discoveries along the 100-metre-thick to 200-metre-thick Niblack felsic horizon that hosts all known VMS mineralization on the property.

Blackwolf holds the high-grade Niblack copper-gold-zinc-silver VMS project, located adjacent to tidewater in southeast Alaska, as well as five Hyder area gold-silver and VMS properties in southeast Alaska and Northwestern British Columbia in the Golden Triangle, including the high-priority wide gold-silver veins at the Cantoo property.