Blackstone Ventures begins phase 2 of Norway drilling
2005-03-14 13:37 ET - News Release
Mr. Donald McInnes reports
PHASE 2 DRILLING COMMENCES IN NORWAY TO FOLLOW UP HIGH GRADE NICKEL INTERSECTIONS
Blackstone Ventures Inc. has initiated its phase 2 drilling program at the Espedalen property in central Norway. Drilling will focus on the Stormyra discovery, where two drill holes, spaced 200 metres apart, intersected 6.91 per cent nickel over 1.9 metres, within a 14.6-metre intersection grading 1.73 per cent nickel (hole ES2004-09) and 2.07 per cent nickel over 2.7 metres (hole ES2004-08), during the 2004 program. A UTEM geophysical survey recently completed in the discovery area (see news in Stockwatch on Feb. 28, 2005) has extended the geophysical anomaly associated with the discovery holes to a total length of 1.1 kilometres. The 2,000-metre drilling program currently under way will test for continuity of mineralization along the full length of the UTEM conductor at the Stormyra zone. A total of 17 holes are planned, with one to two holes per line of section to be drilled on sections spaced 100 metres apart.
The Stormyra nickel discovery lies on the southwestern part of the property in an area with little bedrock exposure. A UTEM survey -- extending the coverage five kilometres to the northwest of Stormyra and one kilometre to the southeast of Stormyra, as well as a number of grids covering new airborne conductors and extending the previously reported P4 anomaly grid -- is currently in progress. Maps displaying the targets at Espedalen can be viewed on Blackstone's website at www.blv.ca. As well, a summary of the project, entitled "Exploration progress report," and dated March 4, 2005, can be viewed on Noranda's website at, www.noranda.com, in the company's section for newroom and news releases.
The Espedalen property is situated in central Norway in rocks of similar age and geological setting as the Voisey's Bay deposits in Labrador. The property is traversed by paved roads and electrical transmission lines, and is approximately 150 kilometres from an ocean port. Blackstone is earning a 60-per-cent interest in the Espedalen property from Sulfidmalm A/S, a wholly owned subsidiary of Falconbridge Ltd. Blackstone will have vested its interest in the Espedalen project part way through the current drill program, at which time Falconbridge has indicated that it plans to exercise its back-in right and finance its share of expenditures. Falconbridge will spend approximately $5-million to earn an additional 20-per-cent interest in the Espedalen project to complete the exercise of the back-in option.
In addition to properties in Norway, Blackstone has executed a definitive purchase agreement with Falconbridge to complete the purchase of a 100-per-cent interest in the Kenbridge nickel deposit in Northwestern Ontario. The deposit hosts a partially developed nickel-copper deposit with a historical resource of 2.7 million tons, grading 1.05 per cent Ni and 0.54 per cent Cu along with cobalt, gold and PGE credits.* As well, Blackstone owns the James River property located south of High Lake, Nunavut, which is currently under option to Wolfden Resources.
*The resource estimate is not in accordance with the classification categories and definitions set out in National Instrument 43-101. The results as reported by Falconbridge should be considered historical, but are believed to be reliable and reflect the standards of reporting at the time.
