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Fox Island, WA, August 30th, 2010 -- Black Hawk Exploration, Inc. (BHWX, OTCBB) announced that seven auger holes were completed to sample and evaluate two dumps, in the Monroe area of the Dun Glen Project, Pershing County Nevada. The tonnage for the North Dump is calculated to be approximately 3,700 tons using a cross sectional estimate. Using the weighted average for the samples collected, the dumps are estimated to contain 442 ounces of gold and 2,938 ounces of silver. At $1,200 per ounce for gold and $18 per ounce for silver, the gross metal value in the dump is estimated to be $582,690. Estimated costs for excavation and processing are $118,000 leaving a net gross value of $465,000. Permitting for the removal of the gold and silver ore will commence immediately. Management will review our dump testing program with the Bureau of Land Management and amend existing permits to allow additional auger sampling of the 7 additional dumps on the Dun Glen claims.
The Monroe North dump returned an overall average of 0.12 ounces per ton (“opt”) gold and 0.79 opt silver from five auger holes. Eighty samples and four known standards were submitted to ALS Minerals for analysis. Ten samples were re-submitted for metallic screen analysis (Nugget Effect) based on very high results.
“The results from the auger drill sampling of the two Dun Glen dumps demonstrate that the project contains dumps that can be moved and processed with a good profit. Furthermore, the auger technique appears to be cost effective and it gives results that are reliable and consistent for making economic decisions regarding processing the dumps. Seven additional dumps appear to have tonnage and geochemical sampling results sufficient to make them good candidates for the auger sampling procedure”, stated Black Hawk’s CEO, Kevin M Murphy.
Eighty samples and four known standards were submitted to ALS Minerals for analysis. Stonehouse Drilling & Construction drilled using a 22 inch diameter auger bit. The two dumps sampled were chosen because they had returned up to 0.2 opt gold from shallow surface trenching and locations that were already permitted. Surface rock chip sampling had returned up to 1.2 opt gold from dump grab samples and were confirmed to be continuous over the entire Monroe North dump
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