Niblack Mineral Development Inc.
TSX VENTURE : NIB

Niblack Mineral Development Inc.

July 13, 2010 08:25 ET

Niblack Mineral Development Expands Precious Metals-Enriched VMS Deposit

EDMONTON, ALBERTA--(Marketwire - July 13, 2010) - Niblack Mineral Development Inc. ("Niblack" or the "Company") (TSX VENTURE:NIB) announces that delineation drilling at the Niblack gold-copper-silver-zinc project in southeast Alaska continues to deliver superb and improving results, further expanding a newly discovered polymetallic volcanogenic massive sulphide (VMS) deposit on the Niblack property.

Niblack's joint venture has completed 35,000 feet of drilling in 23 holes from six underground drill stations. Assay results from the last 14 of these holes, released today, indicate that the precious metals-enriched system located southwest of the known Lookout deposit continues to expand and remains open in several directions.

"The assay results released today confirm the continuity of high-grade VMS mineralization at Niblack, and reflect a consistently strong and improving grade profile and growing resource base," said Heatherdale President & CEO Dave Copeland. "The findings validate our geological team's growing knowledge of the precious metals-enriched system we're seeking to delineate, and enhance our confidence that we will define a polymetallic VMS deposit with the grades, volume and other characteristics necessary to support an economically robust underground mining operation in future."

The Drill Program:

Important intersections from the 14 drill holes (U039-U052) released today are presented in the 'Niblack Assay Table' at the end of this release. Assay results from the first nine holes drilled, representing 15,000 feet of drilling, were released previously (see March 19, 2010 news release). A drill hole location section is available at www.niblack.com.

The initial 25,000 foot drill program is complete and the second phase of the program is well underway. Two underground drill rigs are currently working to further expand the strike length of the newly discovered gold-copper-silver-zinc system located adjacent to the Lookout zone. The Lookout zone is one of six known VMS deposits within the 10 square mile Niblack property.

The 23 holes drilled at Niblack since fall 2009 were collared at six underground drill stations utilizing a fan pattern designed to cross cut the mineralized target horizon southwest of the Lookout deposit. To date, the true widths of the intersections have not been firmly established. Systematic, step-out drilling will continue for the balance of 2010 to expand the dimensions of the high-grade VMS deposit and demonstrate the strength and continuity of the gold-copper-silver-zinc mineralization. 

"We fully intend to continue our investment at Niblack to move the project forward in a timely and efficient way. Over the next several months, two underground drills will complete an additional 50,000 feet of underground drilling for the purpose of further developing the geological model for the project," said Heatherdale President & CEO Dave Copeland.

Niblack's location at tidewater on Prince of Wales Island in southeast Alaska presents a number of compelling 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 kilometres) from Ketchikan, a community of 8,000 people with important services to support project development, including a deep water port and international airport.

The State of Alaska's burgeoning minerals industry also enjoys a competitive tax regime and stable, predictable permitting and regulatory oversight coordinated by the 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 kilometres) to the northwest of Niblack on Admiralty 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 a Tier 1 Canadian exploration and development company whose principal asset is a 100% owned, advanced-stage, gold-rich VMS deposit containing gold, silver, copper and zinc. This project is currently joint ventured to and operated by Heatherdale Resources Limited, (Hunter Dickinson Company) which has the right to earn a 51% interest in the Niblack project by investing US$15 million over three years, and an option to acquire up to a 60% interest from Niblack Mineral Development Inc. (formerly CBR Gold Corp.) by investing an additional US$10 million and 70% by completing a bankable feasibility study. The Company also owns the Khayyam and Ruby Tuesday Properties, which are within 18 miles (30 kilometres) of the Niblack 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.

/s/"John Williamson"
 
President, CEO & Director

NIBLACK ASSAY TABLE

Drill Hole Number   From (feet) To   (feet) Intercept (feet) Cu % Au g/t
Zn %
Ag g/t
  U039     1042.3   1053.4   11.1 1.08 2.13   2.38   57
  U039 incl.   1042.3   1046.2   3.9 1.21 3.96   3.71   81
  U039     1171.9   1175.8   3.9 1.67 3.32   0.61   77
  U040     1366.5   1368.2   1.7 0.60 3.55   1.32   15
  U041     1102.0   1115.7   13.7 2.30 4.09   0.94   67
  U041 incl.   1102.0   1111.0   9.0 2.60 5.18   0.90   81
  U041     1144.5   1174.0   29.5 1.06 1.38   1.17   28
  U042     1306.0   1322.0   16.0 0.54 1.07   0.63   13
  U043 No significant results              
  U044     1051.0   1061.5   10.5 2.03 3.14   1.14   55
  U044 incl.   1051.0   1056.0   5.0 2.60 4.54   1.37   79
  U044     1068.6   1080.7   12.1 1.14 2.24   1.89   45
  U044     1085.0   1125.0   40.0 1.51 2.14   1.10   41
  U044 incl.   1085.0   1110.0   25.0 1.83 2.58   1.23   49
  U045     1624.5   1627.1   2.6 1.64 2.73   0.29   27
  U046A     603.0   615.9   12.9 2.44 2.57   6.06   53
  U046A incl.   603.0   608.3   5.3 3.68 4.01   8.19   79
  U046A incl.   612.0   615.9   3.9 2.45 2.13   7.83   49
  U047     1485.0   1494.8   9.8 1.74 3.09   1.09   49
  U047     1507.0   1508.9   1.9 2.23 1.95   0.18   30
  U048     596.0   599.7   3.7 1.93 3.64   2.90   70
  U049     629.6   644.6   15.0 2.86 1.68   13.09   62
  U050     634.0   664.0   30.0 1.62 2.59   1.96   64
  U050 incl.   649.5   664.0   14.5 2.07 3.74   2.15   83
  U050 and   649.5   656.5   7.0 2.40 4.26   2.25   99
  U051 No significant results              
  U052     666.0   697.9   31.9 1.49 3.78   1.86   85
  U052 incl.   666.0   678.6   12.6 1.92 6.95   3.25   160
  U052 incl.   685.0   692.3   7.3 2.06 3.04   1.60   54

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 the TSX Venture Exchange nor its Regulation Services Provide (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
    604-646-4525 or toll-free: 1-888-331-2269
    604-646-4526 (FAX)
    brianb@niblack.com
    www.niblack.com