Niblack Mining Corp.
TSX VENTURE : NIB

Niblack Mining Corp.

August 07, 2008 07:00 ET

Niblack Drifts Through Lookout Zone Mineralization

16.15 metres grading 1.2 g/t gold, 13 g/t silver, 0.98% copper, 1.3% zinc Incl. 1.0 metre grading 8.0 g/t gold, 41 g/t silver, 2.15% copper, and 2.55% zinc

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 7, 2008) - Niblack Mining Corp. (the "Company") (TSX VENTURE:NIB) is pleased to announce an update to the underground exploration program on the gold-silver-copper-zinc rich Niblack VMS property in southeast Alaska. The Company has completed the underground development program and has successfully intersected Lookout zone mineralization. Excavation of all drill stations is complete, with access now available to continue expanding mineralized zones to depth. An 8,000 metre drill program designed to expand the known zone of mineralization is now underway.

Highlights

- Successful completion of 1,000 metres of an exploration adit.

- Favourable Lookout zone stratigraphy and mineralized zones intersected at predicted depths.

- Chip sampling of the first mineralized zone yields 16.15 metres (53 feet) grading 1.2 g/t gold, 13 g/t silver, 0.98% copper, 1.3% zinc, including 1.0 metre grading 8.0 g/t gold, 41 g/t silver, 2.15% copper, and 2.55% zinc.

- A second mineralized zone ("Mid-zone") has been intersected near the end of the drift that consists of multiple bands and veins of sphalerite-chalcopyrite-pyrite over a width of 3.00 metres (assays pending). The Mid-zone is well beyond the limits of previously defined mineral zones and highlights the potential to expand zones of known mineralization.

- An 850 tonne bulk sample of the first intersected mineralized zone has been collected and stockpiled on site. A portion of this material will be used for future pre-development test work, including metallurgy, pilot scale plant and environmental studies.

- Mineralization intersected in the drift has been traced from the top of Lookout Mountain to depths of over 450 metres below surface, highlighting the excellent continuity of the Lookout zone(s).

- Up to 8,000 metres of underground drilling program underway.

Paddy Nicol, President of Niblack Mining states, "Drifting into the favourable stratigraphic unit at predicted depths confirms our structural model, and highlights the potential to significantly add tonnage below zones defined from surface drilling. We are pleased to see that we have encountered two zones of strong copper-zinc sulphide mineralization. In addition, we look forward to our results from the ongoing underground drill program and our pending resource estimation. Technical teams from both Niblack and Committee Bay are doing an excellent job of supporting the current program and generating plans for future exploration and development."

About the Underground Program

The underground exploration program totals approximately 1,000 metres of drift development, and plans for over 8,000 metres of underground drilling. Underground geological mapping indicates pervasive hydrothermal alteration and sulphide mineralization over the length of the Lookout rhyolite and stratigraphic footwall rocks (see figure at www.niblackmining.com). Chip sampling has been completed across the first mineralized zone, which occurs at the contact with the overturned stratigraphic hanging wall sediments. Additional sampling will continue over the remaining length of the drift, including the second mineralized horizon located approximately 25 metres from the first zone. Strong chlorite, pyrite +/- chalcopyrite alteration in the footwall stratigraphy indicates proximity to a hydrothermal feeder zone.

Drilling is ongoing from stations in the second crosscut targeting areas above and below the drift. To date 12 holes have been completed for a total of 1,950 metres (all assays pending). Drilling is targeting down plunge continuation of known mineralized zones, and will be completed from both the second and third crosscuts. In addition to expanding the Lookout zone, drilling will test several other targets from stations established every 150 metres along the main access ramp.

About the Company

Niblack Mining Corp. is a mineral exploration company engaged in advanced stage exploration of the gold, silver, copper, zinc Niblack volcanogenic massive sulphide (VMS) property located on Prince of Wales Island in southeast Alaska. The Company is carrying out underground and surface exploration programs that are designed to expand the Lookout Zone at depth. The Niblack property has excellent exploration potential and is particularly attractive due to its high precious metals content and year round tidewater access.

The Company and Committee Bay Resources Ltd. (TSX VENTURE:CBR) recently announced that the two companies have entered into a Letter of Agreement providing for a business combination whereby Committee Bay will acquire all of the issued securities of Niblack on the share exchange ratio of one share of Committee Bay for every one share of Niblack. Under the terms of the Agreement Committee Bay has agreed, subject to certain conditions, to provide financing to Niblack for up to C$10,000,000 by way of secured convertible debenture. To date Committee Bay has advanced approximately $4.0 million for exploration and development work on the Niblack project.

A rigorous quality control and quality assurance protocol is utilized on the project including blank and reference samples with each batch of assays. All samples included in this release were analyzed at ALS-Chemex Labs in Vancouver, B.C., Canada. Darwin Green, Vice President of Exploration for Niblack Mining Corporation, is the Qualified Person for this exploration project.

To find out more about Niblack Mining Corp (TSX VENTURE:NIB), visit our website at www.niblackmining.com.

ON BEHALF OF THE BOARD OF NIBLACK MINING CORP.

Paddy Nicol, MBA, President

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press release.

Contact Information

  • Niblack Mining Corporation
    Bill Gillies
    Corporate Inquiries
    (604) 484-5045
    or
    Niblack Mining Corporation
    Fraser Adams
    Corporate Inquiries
    (604) 484-5045
    (604) 684-0279 (FAX)
    Email: info@niblackmining.com
    Website: www.niblackmining.com