Niblack Mining Corp.
TSX VENTURE : NIB

Niblack Mining Corp.

September 10, 2008 08:01 ET

Niblack Mining Corp.: Initial Resource Estimate for Lookout and Trio Zones at the Niblack VMS Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2008) - Niblack Mining Corp. (the 'Company') (TSX VENTURE:NIB) (www.niblackmining.com) is pleased to announce an initial NI 43-101 compliant independent resource estimate for the Company's gold, silver, copper, zinc Niblack VMS property located in southeast Alaska. The resource estimate, prepared by SRK Consulting, is for the Lookout and Trio zones, and is based on surface drill holes completed up to the end of 2007. Using a NSR cut-off of $50 per tonne(i), a near surface indicated resource of 1,424,000 tonnes grading 2.86 grams per tonne (g/t), 41.73 g/t silver, 1.04% copper and 2.14% zinc and a deeper inferred resource of 1,893,000 tonnes grading 2.07 g/t gold, 29.21 g/t silver, 1.65% copper, and 2.71% zinc have been calculated.

"Our initial resource estimate is an excellent start for the Niblack project and we are pleased to see that over 43% is indicated," states Paddy Nicol, President and CEO of Niblack Mining. "This resource clearly shows the continuous nature of the mineralization at the Lookout and Trio zones and comprises only surface based drilling to the depth of our recently completed underground drift. The scope of our current 8,000 metre underground drilling program is to expand this resource down plunge and down dip in areas below, around, and above the drift. Both zones are open at depth and there remains over two kilometres of untested prospective stratigraphy that can be accessed from the drift. In addition we look forward to year round exploration activity at Niblack to help expand the resource."



Resource Table

-----------------------------------------------------------------------
Grades
Cutoff --------------------------
NSR(i) Tonnes X Gold Silver Copper Zinc
(US$) Category Geologic Domain 1,000 (g/t) (g/t) (%) (%)
-----------------------------------------------------------------------
Oxide 220 3.56 52.00 0.22 0.24
-----------------------------------------------------
Indicated Sulphide Lookout 1,860 2.27 32.61 0.91 1.85
-----------------------------------------------------
TOTAL 2,080 2.41 34.66 0.84 1.68
25 ----------------------------------------------------------------
Trio 585 1.84 27.82 1.53 3.13
Sulphide --------------------------------------------
Inferred Lookout 2,003 1.66 23.44 1.31 2.05
-----------------------------------------------------
TOTAL 2,587 1.70 24.43 1.36 2.30
-----------------------------------------------------------------------
Oxide 92 5.37 73.38 0.22 0.20
-----------------------------------------------------
Indicated Sulphide Lookout 1,332 2.69 39.55 1.09 2.27
-----------------------------------------------------
TOTAL 1,424 2.86 41.73 1.04 2.14
50 ----------------------------------------------------------------
Trio 486 2.07 31.55 1.76 3.46
Sulphide --------------------------------------------
Inferred Lookout 1,408 2.07 28.40 1.61 2.45
-----------------------------------------------------
TOTAL 1,893 2.07 29.21 1.65 2.71
-----------------------------------------------------------------------
Oxide 37 6.99 88.14 0.22 0.17
-----------------------------------------------------
Indicated Sulphide Lookout 815 3.11 48.77 1.34 2.91
-----------------------------------------------------
TOTAL 852 3.28 50.50 1.29 2.79
75 ----------------------------------------------------------------
Trio 363 2.46 37.46 2.13 3.71
Sulphide --------------------------------------------
Inferred Lookout 1,047 2.44 32.53 1.82 2.88
-----------------------------------------------------
TOTAL 1,410 2.44 33.80 1.90 3.09
-----------------------------------------------------------------------

(i) NSR equals ($37.93 x Cu% + $8.80 x Zn% + $10.11 x Au g/t + $0.13 x
Ag g/t). NSR formula is based on assumed values for offsite costs, metal
recovery, and metal prices. Offsite costs include transportation of
concentrate, smelter treatment charges, and refining charges. Metal price
for gold (Au), silver (Ag), copper (Cu), and zinc (Zn) are US$700/oz ,
US$12/oz, US$2.25/lb, US$0.85/lb, and estimated metal recoveries are 50%,
40%, 92%, 83% respectively. Payable metal factors are 90.7%, 89.5%, 97%,
and 85% for Au, Ag, Cu and Zn respectively.


Approximately 43% (1.42 million tonnes) of the total combined resource estimate is in the indicated category using a cut off of $50 per tonne. This represents the upper reaches of the Lookout Zone where there is the greatest density of drill holes. The core of this area includes a single coherent body of mineralization that is amenable to lower cost mining methods. Dimensions of this zone average greater than 80 metres (260 feet) vertical thickness, 100 metres (330 feet) horizontal length, and 30 to 60 metres (100 to 200 feet) in width.

The Lookout zone mineral resource is located almost entirely above the 425 foot level of the recently completed underground exploration drift. Ongoing drilling from platforms established within the drift will increase confidence in areas of the inferred resource, particularly deeper parts of the deposit, as well as facilitate expansion of the resource at depth.

Figures depicting the resource area are posted on the Company's website www.niblackmining.com.

About the Lookout and Trio Zones

Mineralization at Niblack is hosted by a thick sequence of rhyolite that exhibits widespread alteration and mineralization. Distribution of the six main massive sulphide occurrences - the historic Niblack Mine, Dama Zone, Lindsy Zone, Trio Zone, Mammoth Zone and Lookout Zone - is controlled by fold repetition of the rhyolite sequence, with the Lookout and Trio zones located on the overturned limb of a property-scale synclinal fold. The Lookout and Trio zones are separated by a strike distance of approximately 300 metres (1000 feet), and are currently the only two occurrences with sufficient density of drilling and number of mineralized drill intercepts to warrant determination of a resource estimate.

Lookout Zone

At the Lookout zone, there is a minimum of three massive sulfide horizons, vertically stacked within a 100 to 200 metre (300 to 600 foot) thick section of Lookout Rhyolite. Sulphide horizons are commonly linked by cross-cutting feeder zones of replacement and stringer mineralization yielding wide zones of continuous mineralization. Sulphide lenses are typically long linear bodies, and have been traced down plunge for a distance of 490 metres (1600 feet).

A gold-silver oxide zone is developed at the upper reaches of the Lookout zone. It represents the base-metal leached, near surface expression of sulphide zones found at depth.

Trio Zone

Mineralization at the Trio Zone is similar to that at the Lookout Zone, and includes stacked horizons of massive sulphide. A new geological interpretation by the Company indicates a moderate to steep south to southeast plunge, with mineralization following the margins of an intensely stockwork-veined rhyolite flow/dome complex. The zone is open at depth with the two deepest holes (LO-206 and LO-207, see news release dated November 8, 2007) yielding some of the best grades and widths to date. Underground access to the Trio Zone could be achieved from the current underground exploration drift by extending a cross-cut 550 metres (1800 feet) to the east.

Resource Model

The independent mineral resource estimate prepared by SRK is reported in accordance with Canadian Securities Administrators' NI 43-101 and conforms to the generally accepted Canadian Institute of Mining "Estimation of Mineral Resources and Mineral Reserves Best Practices" guidelines. The mineral resource is based on 172,768 feet (38,338 metres) of drilling in 155 diamond drill holes. All missing assays were assigned 0.0 grades. The assays were capped and composited to 5 feet lengths. Metal grades were estimated in Datamine software using ordinary kriging into a 3D block model with primary dimensions of 15 x 6 x 6 feet (4.6 x 1.8 x 1.8 metres). The resource model is based on a geology model constructed by Niblack from interpretation of lithology, structure and grade boundaries. To account for folding of the deposit, the geological model was divided into multiple domains each with unique search parameters. The complete NI 43-101 Technical Report will be released within 45 days of this news release.

Darwin Green, P.Geo., Vice President Exploration Niblack Mining Corp., is a Qualified Person as defined by NI 43-101 for the Niblack deposit discussed above. Abolfazl Ghayemghamian, P. Geo., of SRK is the Qualified Person as defined by NI 43-101 for the resource estimate discussed above. They have reviewed and approved the contents of this release.

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 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 formal Arrangment 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 $5.6 million for exploration and development work on the Niblack 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