Heatherdale explores old Niblack Mine

Heatherdale Resources Ltd. Jan. 6 reported that encouraging mineralization observed in the first four holes of the 2020 program prompted the company to drill all ten holes in the area of the historic Niblack Mine on the company's Niblack copper-gold-silver-zinc project in Southeast Alaska.

Heatherdale, which had advanced the Niblack project to the verge of considering the feasibility of mining the high-grade volcanogenic massive sulfide mineralization found there, became hampered by debt during the economic hardships endured by the junior mining sector in 2008 and again in 2012.

Rob McLeod, a geologist noted for his work in Alaska, British Columbia and elsewhere, brokered a deal to acquire the company and breathe new life into the intriguing VMS project that had lain dormant for the better part of a decade.

According to a 2011 calculation, the Lookout and Trio deposits at Niblack host 5.64 million metric tons of indicated resource averaging 0.95% (118.1 million pounds) copper, 1.75 grams per metric ton (317,220 ounces) gold, 29.5 g/t (5.35 million oz) silver, and 1.73% (215 million lb) zinc; plus 3.39 million metric tons of inferred resource at 0.81% (60.7 million lb) copper, 1.33 g/t (144,710 oz) gold, 20.1 g/t (2.19 million oz) silver and 1.29% (96.3 million lb) zinc.

While Heatherdale originally planned to test expansion of the resource area with a drill program that began in November, the mineralization observed in the core of the first four holes impelled the company to continue testing extensions of the historic Niblack Mine, the source of very high-grade ore produced at the onset of the 20th century.

"We are exceptionally encouraged with our first round of drilling, targeting some of the highest-grade massive-sulfide mineralization that has been recognized on the property," said Heatherdale Resources President and CEO Rob McLeod.

According to Alaska territorial government records, roughly 30,000 tons of ore averaging 3.2% copper, 1.3 g/t gold, and 21 g/t silver was mined from Niblack from the years 1902 through 1908.

Heatherdale says that previous operators had drilled 22 holes around this historic mine site. One such hole, LO-065, cut 4.6 meters averaging 5.8% copper, 2.3 g/t gold, 3.8% zinc, and 63.2 g/t silver; and another, LO-067, cut 4.9 meters averaging 5.1% copper, 13.1 g/t gold, 4% zinc, and 149.1 g/t silver.

McLeod said the 2020 drilling has confirmed a new theory that the VMS-style mineralization at the historic Niblack Mine is hosted in a synform, a downward fold of the geology, rather than an antiform, which folds in the opposite direction.

"This confirmation has significantly increased the exploration potential of this area and the entire Niblack property," the Heatherdale CEO said.

Heatherdale hopes to establish a modern resource in the historical mining area with additional surface drilling to kick off when crews return to Niblack in February.

The company also plans to carry out underground exploration and resource expansion drilling at the Lookout deposit.

Significant rehabilitation of the 850-meter-long exploration drift will enable underground drilling in this area and Heatherdale hopes to have two underground rigs turning when drilling resumes.

Heatherdale has worked with the state of Alaska to develop and implement a robust community and workforce protective plan under the guidance of Gov. Dunleavy's health mandate and executive action to limit the spread of COVID-19.

No COVID-19 cases have been reported to-date by Heatherdale's team or contractors.