Blackwolf receives nice Lookout surprise

Blackwolf Copper and Gold Ltd. June 16 reported that the spring 2021 underground resource expansion and exploration drilling program has cut substantially thicker intervals of copper-gold-silver-zinc mineralization than expected at the Lookout deposit, which hosts the bulk of the resource identified so far at the company's Niblack volcanogenic massive sulfide deposit in Southeast Alaska.

According to a 2011 calculation, the Lookout deposit at Niblack hosts 5.6 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 2.4 million metric tons of inferred resource at 0.73% (38.1 million lb) copper, 1.42 g/t (108,202 oz) gold, 21.6 g/t (1.65 million oz) silver and 1.17% (61.1 million lb) zinc.

A higher-grade core of the Lookout zone hosts 1.2 million metric tons of indicated resource averaging 1.7% copper, 3.2 g/t gold, 62.6 g/t silver, and 3.8% zinc.

The spring resource expansion drilling intersected much wider intervals than previous modeling had predicted, with remarkably consistent polymetallic grades within the Lookout zone. Exploration drilling down-dip of the deposit encountered encouraging base and precious metal intervals within the prospective massive sulfide horizon.

Assays have been received for four of five holes drilled during a 1,810-meter program completed in April that targeted extensions to the Lookout zone resources.

Highlights from this drilling at the Lookout and Lookout extension zones include:

• 27 meters averaging 1.06% copper, 1.87 g/t gold, 32.83 g/t silver, and 1.04% zinc in hole U21-226.

• 32.6 meters averaging 1.03% copper, 1.49 g/t gold, 26.54 g/t silver, and 0.92% zinc in hole U21-227.

"Two drill holes were completed to test our revised geological model relating to the expansion of current mineral resources at the Lookout zone and encountered substantially thicker intervals of mineralization than expected, with remarkable continuity between the drill holes. The consistent high-grade mineralization with excellent metallurgy and hosted in good ground conditions suggests that this area is potentially amenable to low-cost bulk underground mining," said Blackwolf Copper and Gold President and CEO Rob McLeod.

Primary objectives of the program were resource expansion drill holes targeting massive sulfide mineralization approximately 300 meters away from the underground ramp and exploration drilling to test for the down-dip extension of the Lookout mineralized horizon, as well as exploration to the west of the Bluebell strike-slip fault, which runs shallowly oblique to the Lookout zone.

All four holes completed successfully encountered mineralization. A fifth hole testing up-dip of the resource was stopped short of the mineralized horizon and is to be completed during the next round of underground drilling.

"The discovery of the Lookout mineralized horizon on the west side of the Bluebell fault is highly encouraging, greatly increasing the size potential of the deposit," McLeod added. "Based on these results that have exceeded our expectations, Blackwolf has decided to initiate a significant upgrade of site facilities including camp, fuel storage, underground support and core processing that can accommodate greatly expanded programs at Niblack."