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Dec, 14, 2009
Black Hawk Exploration's Wholly Owned Subsidiary Golden Black Hawk to Acquire 75% Interest in Dun Glen Mine, Pershing County, Nevada
Press Release Source: Black Hawk Exploration, Inc. On Monday December 14, 2009, 6:00 am EST
FOX ISLAND, Wash., Dec. 14 /PRNewswire-FirstCall/ -- Black Hawk Exploration (OTC Bulletin Board: BHWX) -- Further to our announcement of the incorporation of our wholly owned gold exploration subsidiary ''Golden Black Hawk, Inc.'', Black Hawk Exploration is pleased to announce its continued growth and diversification with the purchase of the Gold and Silver Dun Glen Mine project. Black Hawk is focused on identifying, acquiring and exploring strategic high value properties and developing new prospective projects globally. Further to its previous announcement in late September 2009 Black Hawk Exploration will continue to establish wholly owned corporate identities in multiple strategic minerals, high value commodities, and rare earth projects. ''The incorporation of Golden Black Hawk expands on our 2010 diversification strategy with the Dun Glen acquisition as we continue to develop our current Blue Lithium drill program,'' stated Kevin M. Murphy CEO of Black Hawk.
The terms of the agreement call for a payment of $100,000; $50,000 at the signing of this agreement (the ''closing''), $25,000 on the first anniversary of the closing and $25,000 on the second anniversary; the issuance of 250,000 shares of the Company's restricted common stock at closing and a further 100,000 restricted common stock on or before the first anniversary of the closing. The Company has agreed to expend $700,000 in a work commitment on the property over a four year period from the date of the closing.
ABOUT THE DUN GLEN MINE
In the 1930s and 1940s, miners produced 50,000 ounces of gold from the Dun Glen Property, in western Nevada, Pershing County. In those days exploration below the water table at 250 feet depth was not conducted. The Dun Glen was abandoned and left dormant for several decades. In recent years, geologists at Newmont Mining Corporation advanced the property to the drill-ready stage. Their geologists believed in the presence of an economic ore body in the 500,000 to 2,000,000 ounce range. But when the gold price reached lows near $250/oz., the company shifted its focus elsewhere. With a history of production, and recent exploration, the Dun Glen Property was an opportunity for Black Hawk and its wholly owned gold and silver exploration subsidiary, Golden Black Hawk.
Unlike the majority of gold deposits in Nevada, which are epithermal, the Dun Glen is a mesothermal deposit. The gold is not in the form of micro-particles widely disseminated through the host, but rather it is found in a vein structure. In Nevada, these mesothermal structures tend to go very deep and, even today, nobody has identified the true extent of the down dip of the structure on the Dun Glen Property. They have, however, delineated a strike length of approximately 10,000 feet on surface.
Black Hawk's Dun Glen acquisition sits along the same trend as the Placer Dome's Cortez joint venture in north-central Nevada. Deposits in the area currently contain an estimated 12.7 million ounces of gold reserves. 140 million ounces of gold worth $155 billion at today's prices have been taken from the state, making it a world leader in gold mining.
Black Hawk Exploration's incorporation of its wholly owned gold / silver exploration subsidiary, Golden Black Hawk is its first step to establish a significant presence in the exploration and mining of these valuable commodities.
About Black Hawk Exploration, Inc.
Black Hawk is a diversified metals and energy exploration company whose 2010 focus is our continued development of our Clayton Valley Lithium project through its wholly owned subsidiary Blue Lithium Energy and the diversification of Black Hawk through its newly formed Golden Black Hawk venture.
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