INVENTORY FILE NO.
NAME OF PROPERTY
1993- Black Hawk Mining Inc.
2000 - 95 Wellington St.
Toronto, ON M5J 2N7 http://www.bhkmining.com
Mine shaft on J.R. No. 8
The following description is summarized primarily from Fedikow (1986a,
1986c). The immediate footwall and hangingwall rocks to mineralization are 3-8 m
thick units composed of basaltic and ultramafic komatiite flows and tuffs. The
mineralized zone comprises an interlayered sequence of:
1) Biotite and
1) Oxide, silicate and sulphide facies iron formation;
1) Basaltic and ultramafic komatiite flows with minor tuffs that range in
thickness from 1 cm to 2 m.
At the MacLellan deposit deformation of
rocks within the Agassiz Metallotect resulted in:
1) A well developed
foliation that is parallel or subparallel to bedding;
intraformational folds; and
1) Carbonate-quartz and sulphide laminae that are
parallel to and crosscut bedding.
The deposit can be subdivided into a
laterally discontinuous series of mineralized zones.
Central Zone: This part
of the deposit attains thicknesses of 10-20 m and is characterized by sections
containing up to 1 m of 10-25% Au-bearing iron sulphides hosted in biotite-rich
and siliceous siltstone. The highest Au values are associated with
carbonate-quartz-sulphide veins and their silicification haloes. Persistent but
lower grade values occur in silicified and sulphide-bearing komatiites.
Silicification of the siltstones and patchy but locally intense carbonate
alteration of komatiites represent the most common types of alteration. Probable
ore reserves of the central zone are estimated at 2.6 million tonnes (t)
averaging 5.38 grams/tonne (g/t) (0.157 oz/ton) (SherrGold Inc., Preliminary).
The ore contains 15% arsenopyrite, pyrrhotite, pyrite and galena in convoluted,
tightly folded siltstone interlayered with basaltic and ultramafic komatiites.
Possible ore reserves of the West Zone deposit are 136 000 t averaging 5.49 g/t
(0.16 oz/ton) (SherrGold Inc., Preliminary Prospectus, September 17,
East Zone: In the East Zone 30-40% disseminated iron sulphides in
addition to arsenopyrite, sphalerite and galena occur as tightly folded
conformable lenses within siltstone and basaltic-ultramafic komatiites. The
mineralization is accompanied by locally intense carbonization. Deformed
carbonate-quartz-sulphide veins are present throughout the east zone and contain
iron sulphides, arsenopyrite, sphalerite, and galena. Gold (Au) is found in
association with the highest concentrations of sphalerite and galena.
Lake Zones: Exploration by SherrGold Inc. in joint venture with Novamin
Resources Inc. has outlined geological reserves of 1.27 million t averaging 4.11
g/t (0.12 oz/ton) Au (Kelley, 1987).
Augsten et al. (1986) carried out a
detailed study of the ore mineralogy of the deposit and found that Au is present
in the ore as native gold, electrum, and aurian silver. The average size of gold
grains is 20-30 microns although grains and veinlets greater than 150 microns
were observed. The gold occurs as:
1) irregular shaped grains or veinlets of
less than 10 microns in gangue,
1) rims on, or fracture fillings in galena,
arsenopyrite and pyrrhotite,
1) inclusions in arsenopyrite, pyrrhotite,
inclusions in arsenopyrite, pyrrhotite and galena, and
1) sutured grains
associated with galena.
Fedikow (1986a) acknowledged that the multiple
deformational history of the host rocks makes determination of the genesis of
mineralization very difficult. He considered that geochemical data textures
observed in diamond drill core, and thin sections studies supported an
exhalative origin for the deposit. He proposed the following depositional
1) Extrusion of basaltic to ultramafic komatiites followed by
deposition of clastic and sulphidic chemical sediments. The sulphidic chemical
sediments acted as traps for gold released during the interaction of komatiites
and seawater, and by leaching of immiscible sulphide blebs;
Carbonatization of the volcanic units by the reaction of iron sulphides with
2) Extrusion of komatiite and aluminous basalts;
Intraformational folding accompanied by brittle deformation focused in the
mineralized zone produced tight folding and dilatant zones that enabled lateral
secretion of gold-enriched sulphides, carbonate and quartz;
deformation produced transposed stratigraphy and diffuse alteration zones;
2) Late brittle fractures resulted in discordant sulphide-filled
MINERALS OR PRODUCTS OF VALUE
Silver, zinc, lead
EXPLORATION AND DEVELOPMENT
The Agassiz property originally consisted of the 12 J. R. Claims
(P22540-51) that was staked in 1950. Since then, the two J. R. fractional claims
(P34156-57) were added in 1955, and the 3 Leaf fractional claims (P4828E-30E) in
The mineshaft is located on the J. R. No. 8 claim, approximately 1km
east of Dot Lake and 7 km northeast of Lynn Lake. The area is accessible via
Provincial road No. 391 E from Lynn Lake; the mineshaft lies approximately 3 km
north of the roadway. J. W. Boiley and J. G. Webb originally staked the
property, as part of the J. J. Group of 18 claims (P10416-33), in 1946. In 1947,
the claims were transferred to Roy Rundle. Rundle then optioned the property to
Noranda Mines, Limited. Magnetometer and geological mapping surveys were
conducted the same year. The option agreement was cancelled in 1948, and the
claims lapsed in 1950.
In 1950, Roy and J. W. Rundle restaked a portion
of the J. J. Group as the J. R. Group of 12 claims (P22540-51). J. G. Bellamy
staked the J. R. NO. 1 FR and No. 2 FR claims (P34156-57) in 1955. The property
then was assigned to J. W. Rundle. Between 1950 and 1955, the stakers did some
trenching and test pitting. The 12 claims of the J. R. Group were surveyed in
1954, and J. R. No. 1 FR and No. 2 FR, in 1956.
In April of 1955, Agassiz
Mines Limited was incorporated to take over and develop the claims. Diamond
drilling, totalling 649 m, was conducted in June and July of 1955 to test the
magnetic anomalies indicated by the magnetometer survey conducted by Noranda
Mines, Limited. Two drill holes, 31 m apart, showed a low content of Au, Ag, and
Zn, and Ni up to 0.12%. In addition, DDH No. 3, on the boundary between J. R.
No. 3 and J. R. No. 8, assayed up to 4.5% Zn, up to 2.5 g/t (0.08 oz/ton) Au,
and up to 11.1 g/t (0.36 oz/ton) Ag in the upper part of the hole. In the lower
part, a basic intrusive rock has a low Ni and Cu content, with some Au, and Ag
up to 43.8 g/t (1.4 oz/ton).
In August of 1955, an EM survey was conducted.
Later, in addition to the Au, there is approximately 34.3 g/t (1.0 oz/ton) Ag
with minor Zn and Pb values (Annual Report, 1968, Agassiz Mines Limited). In
1956, a resistivity survey was completed over a portion of the property.
drilling program, consisting of 25 drill holes totalling 3 375 m, was carried
out, in 1956, to test several weak electromagnetic conductors. Four holes cut
sections varying from 0.61 to 2.4 m containing encouraging Au values. Ten other
holes indicated small tonnages of ore grade material containing Au and some Ag,
in association with sulphides.
In 1958, the property was optioned to Central
Manitoba Mines Limited, since (1964) renamed Consolidated Manitoba Mines
Limited. From October 1958 to March 1959, 20 drill holes totalling 2 570 m were
drilled (mostly in the area drilled by previous operators). Results were not
considered sufficiently encouraging to warrant further expenditures, and the
option was allowed to lapse in 1959. In 1960, Bayrock Mines Limited conducted a
geophysical survey on a portion of the property with inconclusive
Development of the property remained dormant until the fall of 1965,
when Agassiz Mines Limited initiated their own drilling program. In summary,
previous drilling, totalling 52 drill holes outlined three parallel veins, two
of which were ore grade. Tonnage estimates indicated 207 000 t to a depth of 244
m $20.23/t (Northern Miner, September 30, 1965).
Upon completion of the
exploration program in 1967, Agassiz had completed a total 12 454 m of surface
diamond drilling. The grade and tonnage estimates, based on the drilling, were
made by two independent consultants, as follows:
Tonnage Uncut grade Cut
(t) g/t (oz/ton) g/t (oz/ton)
1 236 000 12.1 (0.356) 9.8
1 380 000 10.97 (0.32) 9.6 (0.28)
The Agassiz property was
leased to Agassiz Mines Limited for a 21-year period on November 29, 1967 (lease
The next stage of development involved the sinking of a
3-compartment shaft to the 149m level with stations at the 53, 98, and 137m
levels. The shaft is located on the J.R. No. 8 claim. The shaft sinking was
completed by early 1969.
In 1969, the name of Agassiz Mines Limited was
changed to Royal Agassiz Mines Limited.
By 1971, a total of 21 350 m of
diamond drilling in 105 holes had been completed on the property. In addition, a
total of 712 m of underground lateral work had been completed. Due to increased
Au prices in 1971, Royal Agassiz increased their ore reserves to a total of 2
097 000 t grading 11.0 g/t (0.32 oz/ton) Au and 41.1 g/t (1.20 oz/ton) Ag. The
total tonnage estimates consisted of 1 425 000 t drill indicated and 672 000 t
geologically inferred. In addition, the deposit is divided into an E and W zone.
The Main vein plus the C, D, E and F veins comprise the E zone, and the H and
H-1 veins the W zone.
On October 1, 1973, a joint venture agreement was
established with Bulora Corporation Limited. The venture involved a 2-phase
program in which Bulora would reassess the indicated ore reserves and conduct a
feasibility study of establishing a producing gold mine. In return for this
expenditure, Bulora could earn a 50% interest in Royal Agassiz Mines Limited.
(Canadian Mines Handbook, 1974-75, p. 290). The option agreement was terminated
in December 1975. In January 1976, the controlling interest of Royal Agassiz was
passed to Bulora Corporation Limited in settlement of the $350 000 expenditure
involved with the development completed on the Agassiz property. (Northern
Miner, January 29, 1976). On November 21, 1975 the Agassiz property was
converted from the 21-year lease status (lease no. M9001) to the 10-year
explored area lease status (E.A.L. #2). That year, the property was optioned to
Newkirk Mining Corporation Limited, who then assigned it to Aumaque Gold Mines
In 1977, Royal Agassiz Mines Ltd. changed its name to Agassiz
Resources Ltd. In 1979, the property was transferred to Comiesa Corporation who
in turn optioned the property to Sherritt Gordon Mines Limited in late 1979.
From 1979 to 1985, Sherritt spent in excess of $9.0 million on diamond drilling,
shaft sinking and drifting to determine the size, grade and economics of the
deposit. In July 1985, Sherritt announced the approval for the development of
the deposit, to be called the MacLellan mine. Kilborn Engineering (B.C.)
estimated mineable ore reserves of the Main Zone to total 1.49 million t grading
7.17 g/t (0.21 oz/ton) Au (SherrGold Inc., Preliminary Prospectus, September 17,
Sherritt arranged equity financing for development of the
MacLellan mine by consolidating all it’s gold programs into a subsidiary
company, SherrGold Inc. A $4 million grant from the Federal government’s
Canadian Jobs Strategy program and a $2 million forgivable loan from the
Manitoba government also assisted development costs.
mine started production in late 1986, and was expected to be in full production
(327 000 t per annum mill capacity, annual production 2020 kg or 65 000 oz. Au)
"early in 1987" (Kelley, 1986). However, due to construction complications and
the discovery of an irregular ore body, the MacLellan mine experienced
difficulty in efficiently producing.
In 1987, Sherrgold’s parent company,
Sherritt Gordon Mining Inc. began selling off all of its interests in the mining
industry to attempt to reduce its massive debt load. This included Sherritt’s
60% interest in Sherrgold. Sherrgold was sold to Hayes Resources for $10.7
million and 2.4 million in shares (Northern Miner, May 4, 1987).
Resources renamed the company LynnGold to reflect new leadership, and changed
the mining practices to lower costs. Unfortunately, the low gold prices and
difficulties with the cost of mining forced LynnGold into bankruptcy after
little over 2 years. The MacLellan mine closed in December 1989.
LynnGold’s bankruptcy, the mine was held in trust by DCC equities, LynnGold’s
Parent company, until 1993. At that time, Black Hawk Mining Inc. bought the
property, along with several nearby properties to form the Keystone Gold
Project. Black Hawk partnered with Cazador Mining, which had an option to earn
50% through a $10 million investment in this project.
amalgamated with Granduc to form Granduc Mining Corporation in 1993, and
attained its 50% interest in Keystone in 1995. Black Hawk ran an assessment on
the feasibility of reopening the mine’s Nisku deposit in the same year. In early
1996, the assessment, while it proved favourable, was put on hold to develop the
nearby Farley open pit gold deposit (Black Hawk Annual Report, 1996). Granduc
and Black Hawk amalgamated into Black Hawk Mining Inc. in mid 1996, to attain a
100% interest in all Keystone properties. MacLellan mine, however, has
remained closed since 1989, due to low gold prices and the high cost of
The current measured and indicated remaining reserves of
the MacLellan mine are 609 000 t averaging 5.9g/t Au for 116 200 oz Au.,
Inferred resources are 322 500 t averaging 6.3g/t for 65 300 oz Au (Canadian
Mines Handbook, 2001-2002).
Black Hawk Mining Inc. 1993: Annual Reports; Black Hawk Mining
Black Hawk Mining Inc. 1994: Annual Reports; Black Hawk Mining
Black Hawk Mining Inc. 1995: Annual Reports; Black Hawk Mining
Black Hawk Mining Inc. 1996: Annual Reports; Black Hawk Mining
Black Hawk Mining Inc. 1997: Annual Reports; Black Hawk Mining
Black Hawk Mining Inc. 1998: Annual Reports; Black Hawk Mining
Black Hawk Mining Inc. 1999: Annual Reports; Black Hawk Mining
Black Hawk Mining Inc. 2000: Annual Reports; Black Hawk Mining
Black Hawk Mining Inc. 2001: Annual Reports; Black Hawk Mining
Canadian Mines Handbook 1975: Canadian Mines Handbook 1974-75,
Northern Miner Press, p. 290.
Canadian Mines Handbook 2002: Black Hawk
Mining Inc.; Canadian Mines Handbook 2001-02,
Fedikow, M.A.F., and Gale, G.H 1982: Mineral Deposit Studies in
the Lynn Lake Area in
Manitoba; in Department of Energy and Mines, Mineral
Resources Division, Report of Field Activities 1982, p 44-54.
M.A.F., and Gale, G.H.1982: Geological and Geochemical Studies at the
Au-Ag Deposit, Lynn Lake, Manitoba, in Manitoba Department of Energy
and Mines, Mineral Resources Division, Report of Field Activities, 1983, p
Fedikow, M.A.F., et al. 1984: Geochemical Studies Along the
Agassiz Metallotect, in Manitoba
Department of Energy and Mines, Mineral
Resources Division, Report of Field Activities, 1984, p 29-31.
H.P., Syme, E.C. and Zwanzig, H.V. 1980: Geology of the Metavolcanic
Volcaniclastic Metasedimentary Rocks in the Lynn Lake Area, Manitoba
Mines Branch, Geological Paper GP80-1.
LynnGold Ltd. 1988: Annual Report;
Lynngold Resources Ltd.
Manitoba Mines Branch: Corporation files, Agassiz
Mines Limited, Manitoba Mines Branch.
Manitoba Mines Branch: Corporation
files, Bulora Corporation Limited, Manitoba Mines Branch.
Branch: Corporation files, Royal Agassiz Mines Limited, NW 15, 64 C;
Mineral Resources Division: Corporation File: Black Hawk Mining
Manitoba Mineral Resources Division: Corporation File: LynnGold
Manitoba Mineral Resources Division: Corporation File:
Sherritt Gordon Mines Limited.
Milligan, G. R.1960: Geology of the Lynn
Lake District, Manitoba Mines Branch, Publication 57.
Nielson, E. 1983:
Overburden Sampling in the Lynn Lake Area, in Manitoba Department of
and Mines, Mineral Resources Division, Report of Field Activities, 1983, p
Northern Miner 1987: Sherritt Gordon to sell mining assets, May
Sherrgold Limited 1986:, Annual Report, Sherrgold
Sherritt Gordon Ltd. 1984: Annual Reports, Sherritt Gordon
Sherritt Gordon Ltd. 1985: Annual Reports, Sherritt Gordon
Sherritt Gordon Ltd. 1986: Annual Reports, Sherritt Gordon
Gilbert, H.P., Syme, E.C. and Zwanzig, H.V. 1980: Map GP80-1-2,
Cockeram Lake; 1:50 000 scale, geological map, accompanying Geological Paper
GP-80-1, Manitoba Mines Branch.
Manitoba Mines Branch 1963: Map 2382G
Cockeram Lake; Manitoba Mines Branch. aeromagnetic, scale 1:63
Milligan, G. R.1960: Map No. 2. Cockeram Lake; 1:63 360 scale,
geological map accompanying Manitoba Mines Branch Publication
Mining Recording, Manitoba Mines Branch: Maps, NW 15, 64 C, "Circa
1976"; Claim Map Series, Mining Recording, Manitoba Mines Branch, scale 1:31
Surveys and Mapping Branch 1985: Map 64 C/15 Cockeram Lake;
Surveys and Mapping Branch, Ottawa, topographic map (2nd Edition), scale 1:50
Entry revised 05-02
GRJ JDB JR JJJ
02-66 09-66 03-68 06-69 09-71 03-76 09-83 08-87 05-02