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Black Hawk Exploration
Oil and Gas
Black Hawk Exploration purchased oil and gas leases covering approximately 2,553 acres of land in Cowley County, Kansas in November of 2010. BHWX owns 100% of the leases within the Prospect Area and has an undivided 81.5% working interest in and to the oil and gas leases and their previous 10 shut-in oil and gas wells. The lease acquisition includes a 100% interest in one shut-in oil/gas well, the #1 Baker, located on the Keith Baker lease. Also acquired is a 100% interest in 9 other oil wells previously shut- in wells and multiple additional drill targets. Black Hawk's Oil 2011 Program calls for re-working all 10 locations directly or in joint venture with Tiger and returning all of them if possible to cash flow production. On October 27th, 2010 Black Hawk entered into a co-development agreement with Tiger Oil and Energy (TGRO) in which, after an investment of $400,000 by TGRO in a new well in Black Hawk's Cowley County lease, TGRO will earn a 40% working interest in the # 1 Baker well, BHWX will receive a 50% interest in the new well and TGRO will have the right to participate in the 9 well rework program at the Cowley Prospect. BHWX will receive a 20% interest in any other new well TGRO drills on Black Hawk's current or future Cowley County, Kansas leases and has the option to invest in each additional new well drilled by TGRO on a prorated basis up to an additional 30%.
In addition to the November acquisition, Black Hawk Exploration has acquired an additional 425 acres and will be starting our first drill program in mid February, 2011. BHWX has received permit approval and preparation of the 1st site has been scheduled. Management is targeting Mid March for its first production.
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Lithium and
Potash
Black Hawk Exploration,
(OTCM:BHWX), a diversified Gold, Silver, Lithium, Potash, Oil and Gas
exploration company. The Company
is focused on acquiring, exploring and developing a portfolio of
strategic mineral properties in the United States and Internationally.
The Company wholly owns two subsidiaries, Blue Lithium Energy and Golden
Black Hawk. Blue Lithium Energy holds the rights to a 56 claim, 1120
acre property located in Lithium brine rich, Clayton Valley, Nevada
Clayton Valley is home of the largest Lithium brine production facility
in the U.S. The American Institute of Mining estimates the Lithium
resources of the Clayton Valley to be 750,000,000 Kg. BHWX recently
acquired over 3 Square Miles of Strategic Paradox Salt Basin Lithium And
Potash Targets adjacent to Lisbon Valley, in San Juan County,
Utah. The new property is less then ฝ mile from a federally designated
Known Potash Leasing Area (KPLA). The new BHWX leases encompass nearly
2,000 acres of the School and Institutional Trust Lands Administration (SITLA) tracts of
subsurface potassium rights and includes all other associated chloride
minerals which includes all Lithium rights. The newly acquired leases
are situated less than 3,000 feet from a known federal potash reserved
leasing area. Direct access and infrastructure is immediately
contiguous to the acquired project area. This includes a pool of
professional labor, a major highway, natural gas pipeline and close
proximity of a major power source. Improved roads crisscross the
leases. The company has in its possession oil and gas well data from one
of our leases, displaying sections of salts nearly 3,000 feet thick
containing multiple potassium (Potash) beds within the Paradox salts.
In the published report titled
Mineral, Energy and Ground Water
Resources of San Juan County, Utah it states; "A thick zone of saline water containing
potassium, sodium, magnesium and trace elements underlies the eastern
portions of San Juan County in the same area as the bedded salt of the
Paradox Formation. Devonian to Cretaceous strata contains brine, but
Mississippian to Permian strata contains the highest concentrations and
host most of the resource.
The Depth to the brine zone is
controlled by stratigraphy and geologic structure as well as the amount
of surface water infiltration. The concentration and composition of the
brine caries laterally and vertically. Mauher and Heylmun (1966)
evaluated oil field brines from 200 wells in the Paradox basin and
determined that the brines become more concentrated toward the deeper
part of the basin. Mauher and Heylmun projected commercial
possibilities for extraction of magnesium, potassium bromine, boron as
well as lithium
Black Hawk is currently incorporating
these new acquisitions into its overall Lithium exploration plans and
phasing for future development. BHWX will include cross section salt
and brine modeling, exploratory planning, drill site recon and
permitting in Utah upon completion of our 2011 Lithium acquisition
plans.
Gold and Silver
Golden Black Hawk, possesses a 75%
interest in the Dun Glen mining property in Pershing County Nevada. Dun
Glen has a successful history of gold production dating back over 100
years. Third party estimates put the potential gold reserves of the
Golden Black Hawk holdings between 500,000 and 2,000,000 ounces. 2010
exploration has mapped a potential $1,000,000 in Gold and Silver ore in
the ore dumps at Dun Glen and permitting is underway to allow for
removal and processing in the Spring of 2011. Black hawk expanded the
claim blocks in 2010 adding an additional 600 acres, covering 30 new
claims. A comprehensive report of the exploration and geologists
recommendations for 2011 is available by
emailing us.
