Black Pearl Minerals Consolidated Inc.

Black Pearl Minerals Consolidated Inc.

January 28, 2008 10:28 ET

Black Pearl Receives NI 43-101 Report on Timmins Gold Property;

Estimated Geological Potential of 1.5-2.5 Million Oz Including an Indicated Resource of 93,140 Contained Oz Gold, and an Inferred Resource of 139,880 Oz Report Recommends $22 Million Phase 1 Underground Exploration Budget

TORONTO, ONTARIO--(Marketwire - Jan. 28, 2008) - Black Pearl Minerals ("the Company") (TSX VENTURE:BLK) has received a Technical Report from GEOEX Limited of Toronto, Ontario on the Geological Potential, Mineral Resource Estimate and Preliminary Economic Assessment for the Company's 100% - owned Timmins Gold Property in Tully Township. The property comprises 16 contiguous claims (261 hectares) about 30 km north-northeast of downtown Timmins. The Company and previous operators have drilled 37,910 meters in 170 holes on the property.

The following statements are direct quotes from the SUMMARY and RECOMMENDATIONS sections of the Report.

"In the Author's Opinion, the geological setting of the Property is sufficiently well defined to conclude that there is a valid comparison to be made between the property and the mines that occur in the Bell Creek-Hoyle Pond trend of the Timmins gold camp.

The Author concludes that the in-situ grade potential of the property will ultimately be in the range of 8 to 10 grams gold per tonne and....concludes that the work completed to date on the property has demonstrated the presence of a significant gold resource ....and that the Property has economic potential.....and recommends that the Company initiate planning for an underground exploration and development program with the objective to confirm the geometry and continuity of the vein structures and to confirm sufficient measured and indicated resources to warrant completion of a feasibility study."

Summary of Mineral Resource and Geological Potential Estimates

Grade Contained Gold
Tonnes Gm/tonne Troy Oz

Indicated Mineral Resource 362,090 8 93,140
(to 350m)

Inferred Mineral Resource
Drill Inferred to 350m 114,990 6.3 23,290
Inferred Extensions to 650m 477,080 7.6 116,590

Total Inferred Mineral Resources 592,070 7.3 139,880

Geological Potential(i) (to 650m) 6-7.8 million 8.0-10 1.5-2.5 million

(i) The Geological Potential quantity and grade is conceptual in nature as
there has been insufficient exploration to define a "Mineral Resource" as
defined in NI 43-101 and it is uncertain if further exploration will result
in the geological potential being delineated as a Mineral Resource.

Based on preliminary capital and operating cost estimates prepared for this Report the following program and budget is recommended;

Phase 1 Program

1) Upgrade the gravel road access to the site and extend it to where the proposed ramp will be collared.

2) Establish a ramp from surface to the 150 meter level below surface and establish drifts and crosscuts.

3) Complete an underground drilling program and bulk sampling program.

4) Complete preliminary permitting work for Phase 2 development to production stage.

Phase 1 Budget

1) Items 1 and 2 $15,000,000
2) Underground drilling (10,000 meters @ $150/m) $ 1,500,000
3) Bulk Sample (50,000 tonnes @ $100/tonne) $ 5,000,000
4) Preliminary Permitting Work $ 500,000

TOTAL PHASE 1 BUDGET $22,000,000

Resource Criteria; The mineral resources included in the report are defined in terms of the NI 43-101 regulations and their estimation was carried out using industry standard polygonal longitudinal section methodology. Continuity of mineralized structures was established by evaluation of 50-metre level plans and 25-metre cross sections. The mineral resources are undiluted and none of the high assays were capped. Indicated Mineral Resource estimates were based upon a 12.5 meter radius of influence around drill hole intercepts and Drill Inferred Mineral Resource estimates were based on a 25 meter radius of influence around drill intercepts. A specific gravity of 2.8 was used for tonnage calculations. Assay results from 170 holes totaling 37,910 meters were used. A total of 221 composited assay intersections make up the resource database.

Geological Potential Parameters; The following information is provided directly from the report;

Opinions on the geological potential of a property are permitted under Sections 2.3(2) and 2.3(3) of NI 43-101 provided that it is clearly stated that "the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a "Mineral Resource" as defined in NI-43-101, and it is uncertain if further exploration will result in the target being delineated as a Mineral Resource."

Geological and management personnel of the Archean gold mines of the gold districts of Ontario (Timmins, Kirkland Lake, Red Lake, etc.), have intuitively understood for over a century the issues of assessing the gold content of gold bearing structures using diamond drilling. The standard operating procedure for decades has been "drill for structure" and "drift for grade". This was basically the standard operating procedure for all of the Archean gold mines that were opened in Canada. Most were discovered on the basis of significant surface showings and were initially explored by shallow shafts and drifting on the vein. As districts became well established in the post World War 2 era, drilling of small surface showings along trends within and along strike from established districts became a favoured exploration methodology.

Exploring for new Archean gold mines in overburden or water-covered areas must rely completely on drilling to define new zones of subcropping gold mineralization. Similarly, in-mine exploration at depth and along strike commonly must rely on wide-spaced drill holes to provide indications of lateral or vertical extensions of known ore bodies.

Rogers (1982), in his analysis of drilling as an aid in ore definition at the Dome Mines in Timmins, clearly substantiated the sampling problem. Drawing on more than 72 years of mining history at the Dome and an analysis of 20,000 drill holes totaling over 1,215,000 meters, Rogers states that;

"Diamond drilling plays an important role in the evaluation of the stratigraphic and structural features which control ore deposition. The main function of diamond drilling is to locate favourable areas of mineralization. Needless to say, a great many significant intersections, carrying a wide range of gold values, have resulted, however, the term "significant" takes on new meaning in light of the experience of diamond drilling at the Dome Mine. Drilling through individual ore veins often intersect the vein structure: however, assays from the veins frequently fail to yield any ore grades. Similarly, drill cores through stringer-type occurrences, when assayed, fail to indicate the true size or grade of the ore body finally mined." Rogers further noted that "those who explore for gold and those who have the slightly less fickle task of actually mining gold have shared a common dilemma which lies in the failure to relate the results of diamond drilling to a positive ore situation, or ultimately to reconcile the "diamond drill indicated ore" to actual ore reserve tonnages." Rogers concluded that "the role of diamond drilling is paramount to success or failure in the "making of a mine". Once the discovery is made, some appreciation of the size of the deposit must be understood before the economic viability of further development can be ascertained. To that end diamond drilling is asked to play its conventional role. However, at the Dome Mine, in the exploration and development of gold-bearing deposits, diamond drilling results are often misleading when consideration is given only to the economic value of the drill core assays themselves".

Rogers further noted that 40% to 60% of holes completed through multi-vein gold structures and 50% to 80% of holes completed through single vein structures failed to return any gold values in excess of 1.7 grams per tonne in areas that were ultimately mined. At the time of this analysis the Dome Mine had produced 11.1 million ounces of gold. Also, a review of the annual production and reserve information for the Dome Mine over its long history reveals that the proven reserve base rarely exceeded 3 years of future production until the 1990's when the bulk mining open pit was developed.

Clearly, based on the above analysis, in the evaluation of the geological potential of a predevelopment-stage property such as the Timmins Property that is the focus of this Report, emphasis must be placed upon the tonnage potential of the vein structures, and a review of the overall hit and miss ratio of the gold intersections during the exploration stage drill program.

None of the great gold mines of the Timmins camp would have ever achieved production if a requirement of financing of the initial development had been to demonstrate 7 to 8 years of proven plus probable mineral reserves as defined in NI 43-101.

Typically, in Archean vein-type gold deposits, gold is very rarely uniformly distributed throughout the vein structure but rather, occurs as clusters of small particles or single masses of spectacular "nuggety" gold. This random, unpredictable distribution of gold influences all sampling of gold mineralization and this problematic sampling issue is what is known as the "Nugget Effect."

It is the Author's opinion that it is demonstrably valid to assess the geological potential of an undeveloped gold zone by establishing the volume of vein zone or mineralized structure as a basis for estimating tonnage potential, and, by assessing the grade potential based upon the grade of similar deposit types and, where available, the statistics of the assay data for such deposits.

Geological Tonnage Potential; The Author's initial step in determining the geological potential of the property was to prepare a complete set of level plans and cross sections, which illustrate major geological contacts, percent quartz veining observed in the drill core, and gold assay information.

Subsequently, level-by-level and section-by-section interpretation of the outline of the mineralized zone was completed and volume and tonnage estimates based on both levels and sections were determined separately. From surface to 350 meters in depth the estimate based on level calculations was 3,783,360 tonnes and the estimate based on sections was 2,952,145 tonnes. The drill indicated tonnage to a depth of 350 meters below the surface is in the range of 3.0 to 3.9 million tonnes or 10,000 to 13,000 tonnes per vertical meter (taking into consideration overburden and a crown pillar beneath the overburden).

The mineralized zone is open at depth and the Author is of the opinion that it is reasonable to conclude that the zone should continue for at least another 300 meters.

The author therefore concludes that the geological potential of the Property is in the range of 6.0 to 7.8 million tonnes to a depth of 650 meters below surface.

Geological Grade Potential; The Author reviewed all assay data for the project in detail and prepared a new set of composite intercepts. The statistics of the composites making up the database are very similar to the statistics of the Dome Mine (Rogers,1982).

Approximately 63% of intercepts through the vein structures returned less than 1.7 grams per tonne, the average for all intercepts greater than 1.7 gpt is 5.5 gpt, and the average for the upper 25% of the intercepts is 8 gpt. The vein intercepts that returned less than 1.7 gpt generally display geochemically anomalous gold values.

The geological setting and mineralization on the Property is similar to the mineralization in the Bell Creek-Hoyle Pond trend of the Timmins Camp. In that area, structurally controlled gold vein systems occur primarily within mafic volcanic rocks with Porcupine assemblage sedimentary rocks on the hanging wall side of the mafic volcanics and the Kidd-Munro assemblage ultramafic volcanic rocks on the footwall side. Average grades for producing and past producing mines along that trend are as follows;

Tons Oz Produced In-situ gpt
Bell Creek (underground) 576,017 112,739 8.2
Owl Creek (Open Pit) 1,984,000 236,880 4.8
Hoyle Pond (underground) 6,087,040 2,316,346 15.1

The reader is cautioned that the information presented on similar properties above in this section is not necessarily indicative of the mineralization on the Property that is the subject of this Report.

Based on the assay data base for the Property, comparison with other gold deposits in the area in similar geological settings, and the results of the resource estimates contained in this Report, the Author assumes that the average gold grade for the Property will be in the range of 8 to 10 grams per tonne. The Author concludes that the geological potential of the property to a depth of 650 meters below surface is in the range of 1.5 to 2.5 million ounces of contained gold.

The Technical Report is in the form and content intended to conform to Form 43-101FI of National Instrument 43-101 of the Canadian Securities Administrators and was authored by Mr. Peter George, B.Sc.,P.Geo., who has over 40 years experience in the mining industry including extensive experience in the gold exploration and mining sector in Canada. The report will be filed with the appropriate regulatory authorities within the mandated timeframe.

The Company is pleased with the estimates and recommendations contained in this report. Black Pearl has held the Timmins deposit since 1996 and drilled over 14,000 meters on the Property and the report validates the effort and perseverance made by the Company's personnel over the years.

Mitch Lavery (P.Geo), is the Company's qualified person as required under NI 43-101 and has reviewed the technical information contained in this press release.

Black Pearl Minerals is a TSX-Venture listed company engaged in mineral exploration and development activities. Its properties include the Timmins gold property, the Four Metals polymetallic property near Nogales, Arizona and the Wekusko Gold Property and the Thompson Bros. Lithium Property near Snow Lake, Manitoba.

Shares Outstanding: 42,365,301

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Black Pearl Minerals Consolidated Inc.
    Robert Sibthorpe
    (604) 602-4935
    Black Pearl Minerals Consolidated Inc.
    Judy Baker
    (416) 587-7268
    Black Pearl Minerals Consolidated Inc.
    Andrew Cook
    (604) 218-5656
    Black Pearl Minerals Consolidated Inc.
    Jim MacDonald
    Corp. Communications
    (604) 602-4935