The mineral resource estimate for the Lookout and Trio deposits is based on drilling completed to December 23, 2010, and includes 308 drill holes. Mineralization has been modeled as sub-seafloor replacement and accumulation style VMS deposits. The resource estimate utilizes three-dimensional modeling techniques and estimation parameters based on prior experience at Niblack. Mineral resources at a US$50 NSR cutoff and long-term metal prices, as estimated by geostatistical methods, are tabulated below.
|
LOOKOUT AND TRIO MINERAL RESOURCES MARCH 2011
|
| Indicated |
| Deposit |
Tonnes |
Cu (%) |
Au (g/t) |
Zn (%) |
Ag (g/t) |
| Lookout (oxide) |
183,000 |
0.22 |
3.71 |
0.20 |
57.43 |
| Lookout (sulphide) |
3,954,000 |
1.17 |
2.25 |
2.36 |
37.82 |
| TOTAL |
4,136,000 |
1.13 |
2.32 |
2.27 |
38.70 |
| Inferred |
| Zone |
Tonnes |
Cu (%) |
Au (g/t) |
Zn (%) |
Ag (g/t) |
| Trio (sulphide) |
756,000 |
1.50 |
1.75 |
2.91 |
26.65 |
| Lookout (sulphide) |
1,736,000 |
1.09 |
1.77 |
2.02 |
25.52 |
| TOTAL |
2,493,000 |
1.21 |
1.77 |
2.29 |
25.90 |
Notes: US$50 Net Smelter Return (NSR) uses long-term metal forecasts: gold US$1050/oz, silver US$18.00/oz, copper US$2.50/lb, and zinc US$1.00/lb; Recoveries used to Cu concentrate of 95% Cu, 56% Au and 53% Ag with payable metal factors of 96.5% for Cu, 90.7% for Au, and 89.5% for Ag; to Zn concentrate of 93% Zn, 16% Au, and 24% Ag with payable metal factors of 85% for Zn, 80% for Au and 20% for Ag. Detailed engineering studies will determine the best cutoff.
Building on the 2008 discovery of high-grade VMS mineralization within the Lookout Deposit, exploration and delineation drilling undertaken in 2009 and 2010 has achieved substantial increases to the size, grade and extent of the resource. The currently outlined dimensions of the Lookout Deposit are approximately 2,200 feet by 1,500 feet, with an average thickness of 55 feet. The currently outlined dimensions of the Trio Deposit are approximately 750 feet by 400 feet, with an average thickness of 220 feet. In addition to tonnes and grade, the continuity and geometry of the Lookout and Trio deposits – in particular their thickness – makes them attractive candidates for low-cost underground mining.
The continuous, higher-grade zone of mineralization which has been outlined within the Lookout Deposit is tabulated below.
|
LOOKOUT HIGH GRADE ZONE
|
| Category |
Cut-off (NSR) |
Tonnes |
Cu (%) |
Au (g/t) |
Zn (%) |
Ag (g/t) |
| Indicated |
150 |
1,460,000 |
1.73 |
3.50 |
3.84 |
61.60 |
To date, 43-101 compliant mineral resource estimates have only been prepared for the Lookout and Trio deposits, although there are four other known VMS deposits at Niblack – including Mammoth, Dama, Lindsy and Niblack. All of the deposits, including Lookout and Trio, remain open and are candidates for future resource expansion. Two drill rigs are currently active at the Niblack property as part of a comprehensive 2011 drilling program to further expand and delineate high-grade VMS mineralization within the Lookout, Trio and Mammoth deposits.
For further information on the Niblack resource see press release dated March 7, 2011.
Niblack Mineral Development Inc. maintains an extensive quality control program in the preparation, shipping and checking of all samples from the property. Projects are supervised by Peter Kleespies, M.Sc., P. Geol. who is the Qualified Person as defined by NI 43-101. A detailed description of Niblack Mineral Development Inc.’s QA/QC program is provided on the Company’s website at http://www.niblack.com/project_areas/qa_qc/.
Niblack Lookout & Trio:
High-Grade Mineralized Zones
