New MRE announced for Blackwolf's Niblack

Blackwolf Copper and Gold Ltd. Feb. 16 announced, after more than a decade, an updated mineral resource estimate for its Niblack property in Southeast Alaska.

"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 (Canadian Institute of Mining, Metallurgy and Petroleum) guidelines," said Blackwolf Copper and Gold President and CEO Rob McLeod. "The wide nature of mineralization, particularly at the Lookout Zone is potentially amenable to underground bulk mining methods such as longhole stoping."

The previous calculation estimated Niblack – in particular the Lookout and Trio zones of the property – hosted 5.46 million metric tons of indicated resource averaging 0.95% (118.1 million pounds) copper, 1.74 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.

The updated MRE was completed to incorporate three additional rounds of drilling on the property, which was designed to evaluate the potential of including additional resources from other target areas at Niblack and to reflect current economic parameters.

According to the newest MRE, Niblack hosts 5.85 million metric tons of indicated resource averaging 0.94% (120.7 million lb) copper, 1.83 g/t (345,800 oz) gold, 29 g/t (5.5 million oz) silver, and 1.73% (222.6 million lb) zinc; plus 214,000 metric tons of inferred resource averaging 0.93% (4.4 million lb) copper, 1.52 g/t (10,400 oz) gold, 18 g/t (125,000 oz) silver, and 1.38% (6.5 million lb) zinc.

While not a significant change, these numbers also factor in a cut-off of US$100 per metric ton in both Lookout and Trio – as well as a higher-grade zone at Lookout that was cut-off slightly higher.

Comprised of 3.79 million metric tons averaging 1.06% copper, 2.19 g/t gold, 35 g/t silver, and 2.07% zinc in the indicated category, Blackwolf determined a US$130 per metric ton cut-off.

This is double the original US$50 cut-off per metric ton from the 2011 MRE, resulting in a net loss of metric tons in the resource. Furthermore, consensus forecast metal prices used in the current resource estimate increased the overall metric tonnage in the model, but as these were lower grade, they did not meet the current reporting cut-off in the resource estimate.

Finally, newer drilling, an updated geological model, and refined variography and geostatistics resulted in an increase in overall metric tonnage in the model and the conversion of inferred to indicated blocks.

"Mineralization at multiple zones is wide open for expansion along strike and down dip and our revised geological interpretation has opened up new areas for discovery on the property," added McLeod. "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."

In addition to the potential expansion of Lookout and Trio, which the company reports are both open along strike and up/down-dip, Niblack hosts four other known volcanogenic massive sulfide targets – Mammoth, Dama, Lindsy, and the historic Niblack mine site.

While all have had variable amounts of drill testing, preliminary models were prepared for the historic Niblack site and Dama targets; however, the drilling density on the targets does not meet the current requirements for resource estimation.

Aside from its promising reevaluation of its resource, Blackwolf has begun to think ahead for the time it is ready to start production.

Opting to participate in a recently announced study, Blackwolf, along with Dolly Varden Silver Corp. and New Moly LLC, are seeking to determine the viability of building a mill on New Moly's Kitsault project, roughly 65 kilometers (40 miles) southeast of Stewart, BC.

For Blackwolf, this would mean only a short barge trip to deliver ore to a future Kitsault hub mill, resolving the issue of having too little available space at the mine site to build its own facility and associated infrastructure.

Whether this follows through or otherwise, the company is continuing to move forward with this highly prospective property.

You can read about the possible hub mill at Alaska, BC miners eye centralized mill in the February 3, 2023 edition of North of 60 Mining News.