Niblack Mineral Development Inc.
TSX VENTURE : NIB

Niblack Mineral Development Inc.

August 31, 2011 16:28 ET

Niblack Joint Venture Partner Completes Requirements to Secure 60% Interest in Niblack Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 31, 2011) - Niblack Mineral Development Inc. ("Niblack" or the "Company") (TSX VENTURE:NIB) is pleased to announce that joint venture partner Heatherdale Resources Ltd. ("Heatherdale") (TSX VENTURE:HTR) has satisfied requirements to earn an additional 9% ownership interest (resulting in a total ownership Interest of 60%) in the Niblack Project as contemplated by the June 2009 LLC Agreement of the Niblack Project LLC (the "Agreement").

"We look forward to working with Heatherdale and utilizing the resources of both groups to expedite the advancement of the Niblack Project toward the prefeasibility stage," stated Niblack's President and CEO, John Williamson.

Heatherdale has advised Niblack that it has elected to pursue the property development under a 60/40 joint venture rather than continue to earn a larger percentage interest at this time. Heatherdale and Niblack have approved a budget going forward and Heatherdale has agreed to sole fund operations for a 60 day period to facilitate the uninterrupted continuation of the current exploration program.

Since its formation in June 2009, the joint venture has completed some 130,000 feet of underground drilling at the Niblack Project and work programs have been very successful. Earlier this year, the joint venture announced a 54% increase in mineral resources in the Lookout and Trio deposit over those known to exist in 2009. At a US$50 NSR cut off1, the March 2011 estimate comprises 4.1 million tonnes of Indicated resources grading 1.13% copper, 2.32 g/t gold, 2.27% zinc and 38.70 g/t silver and 2.5 million tonnes of Inferred resources grading 1.21% copper, 1.77 g/t gold, 2.29% zinc and 25.90 g/t silver. A continuous 1.5 million-tonne high-grade zone occurs within the indicated resource, grading 1.73% copper, 3.50 g/t gold, 3.84% zinc and 61.60 g/t silver at US$150 NSR cutoff (see March 7, 2011 news release).

These resources laid the foundation for advancing the project to the next stage of engineering and scoping studies, which are a part of the 2011 program. Further, recent results from drilling have confirmed that the geological model for the project is robust and successfully targeting new mineralization. In particular, a new zone has been intersected in drilling (see July 28, 2011 news release) that is expected to add to the mineral resources. As only approximately ¼ of the six miles of prospective horizon that hosts the Niblack deposits has been tested by drilling, there is significant additional resource potential on the property.

The location of the Niblack Project at tidewater on Prince of Wales Island in southeast Alaska presents a number of project benefits, including year-round marine access, a well-trained labour force, a mature supply and service sector, proximity to Asian markets, and the support of community and Alaska Native corporation partners. The project is located 27 miles (44 km) from Ketchikan, a community of 8000 people with important services to support project development, including a deep water port and international airport. The State's burgeoning minerals industry also enjoys a competitive tax regime and stable, predictable permitting and regulatory oversight coordinated by the Alaska Department of Natural Resources' 'Large Mine Permitting Team'. For reference, Hecla's Greens Creek, a 2,100-ton per day underground massive sulphide mine, operates 225 miles (370 km) to the northwest of Niblack on Admirality Island.

Peter Kleespies, P.Geol., a Qualified Person as defined under National Instrument 43-101, is supervising the exploration and quality assurance and quality control programs on behalf of Niblack and has reviewed the content of this release.

About Niblack Mineral Development Inc.

Niblack Mineral Development Inc. (TSX VENTURE:NIB) is an exploration and development company with a number of mineral rich assets in South East Alaska. The Corporation's principal asset is the Niblack advanced stage copper-gold-zinc-silver project. This project is currently a joint venture operated by Heatherdale Resources Ltd. (part of the Hunter Dickinson group of companies) which has earned a 60% interest in the project.

Niblack Mineral Development Inc. is a member of the Discovery Group of companies, for more information on the group visit www.discoveryexp.com.

On behalf of the Board

Niblack Mineral Development Inc.

John Williamson, President, CEO & Director

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that the company expects are forward looking statements. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Contact Information

  • Niblack Mineral Development Inc.
    Brian Budd
    Director of Corp. Development
    604-697-2861 or Toll Free: 1-888-331-2269
    brianb@niblack.com
    www.niblack.com / Mobile URL: m.niblack.com