MINERAL INVENTORY FILE NO.
996
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PRODUCT
GOLD
NTS AREA
64C16NW
REF.
AU01
______________________________________________________________________________________________________
NAME OF PROPERTY
Farley Lake
OWNER OF OPERATOR ADDRESS
1993 Black Hawk Mining Inc.
2000 - 95 Wellington St. West
Toronto, ON M5J 2N7
www.bhkmining.com
OBJECT LOCATED
Wendy Zone
MINING DIVISION
The Pas
Latitude
5654'04
Longitude
10026'5
Uncertainty (m)
100 m
UTM Zone
14V
Easting
412900
Northing
6306400
L.S./Quarter Section
11
Section
16
Township
91
Range
19WPM
DESCRIPTION OF DEPOSIT
The following description of the Farley Lake deposit (not to be confused with the Farley shaft of the nearby “A” mine. See: Mind No. 636) is based mostly on personal communication with Neil Briggs of Manitoba Mineral Resources Ltd. (MMR) and Ted Baumgartner of Hudson Bay Exploration and Development (HBED).
Wasekwan Group iron formation, argillite and andesite to basalt flows underlie the area. These rocks are considered to represent the eastern continuation of the Agassiz Metallotect. A small quartz diorite plug intrudes these rocks to the west of Farley Lake.
The iron formation in the Farley Lake area is 6 km long by 600 m wide (Milligan, 1960, Map No. 3) and is predominantly composed of an oxide facies iron formation that is intercalated with clastic sediments (Dahlstrom, 1949; Milligan, 1960). The oxide facies iron formation, that outcrops west of Gordon Lake, consists of laminae of hematite and chert ranging from less than 5 cm up to 15 cm in width (Stanton, 1948).
Between Gordon and Farley Lake, the oxide facies iron formation consists of interbedded laminae of magnetite, chert and layers of chlorite, amphibole, minor silica and disseminated magnetite. The oxide facies iron formation hosts several zones of gold mineralization. They occur as lens-shaped deposits within and subparallel to alteration zones characterized by silicification, chloritization and sulphidization; both the deposits and the alteration zones are oblique to layering. The gold and sulphide bearing iron formation consists of interbedded pyrrhotite/magnetite and chert laminae. Minor amounts of pyrite and silicate minerals are also present. The proportion of pyrrhotite in individual pyrrhotite/magnetite laminae ranges from less than 5% up to 90% and contains small isolated grains of gold in the cavities of the silicate matrix and within pyrrhotite and magnetite grains (Manitoba Mineral Resources, internal report). Traces of gold and sulphides also occur in quartz veins within iron formation, argillite, mafic volcanics and quartz diorite.
Exploration has outlined three zones of gold mineralization, the Wendy, South and East zones. The Wendy Zone and East Zone have combined geological reserves of 635,000 tonnes averaging 6.86g/tonne (0.20oz/tonne) gold (Northern Miner, January 19, 1987, p. 13). The South Zone contains an estimated 363,000 tonnes grading 4.80 g/tonne (0.14 oz/ton) gold.
MMR and HBED consider the deposits epigenetic and similar in genesis to iron formation-hosted gold deposits at Water Tank Hill and Nevoria, Western Australia. It has been proposed that the deposits are formed in these areas by selective replacement of oxide facies banded iron formation by gold and sulphur bearing fluids (Phillips et al., 1984). Fyon et al. (1983) proposed a similar genesis for the Carshaw and Malga gold deposits at Timmins, Ontario and suggested that fluid ingress was along fractures and faults in the iron formation. Evidence supporting an epigenetic model for formation of the Farley Lake deposit is:
1) an abrupt change from barren oxide facies iron formation to gold and sulphide bearing iron formation,
2) the deposits and the surrounding alteration zone crosscut stratigraphy, and
3) the concentration of gold relative to base metals in the deposit.
ASSOCIATED MINERALS OR PRODUCTS OF VALUE
N/A
HISTORY OF EXPLORATION AND DEVELOPMENT
Sherritt Gordon Mines Limited staked the area as the Lind claims in 1945. Mapping in the area discovered gold in frost heaved boulders at the west end of Farley Lake (Milligan, 1960).
In 1947, drilling carried out by Sherritt, on the Lind showing and in the Pot Hole Lake-Pump Lake area, intersected two gold-bearing zones that assayed up to 14.0g/tonne (0.41oz/ton) gold (Manitoba Mines Branch, Non-confidential assessment files 91041, 91836). After this initial drilling, the claims were apparently inactive until they lapsed in 1976.
HBED staked the property in 1977 and from 1978 to 1983, HBED, as operator, carried out linecutting, HLEM surveys and diamond drilling in the search for base metals. MMR, as operator in a joint venture agreement with HBED, carried out extensive exploration programs from 1983 to 1989. In 1986, widespread gold mineralization was discovered in three zones, two of which was considered amenable to open pit mining (Manitoba Mineral Resources, News release to the Northern Miner, January 1987). In total, 15 250 m of drilling was carried out.
In 1989, a feasibility study, carried out by MMR and Mingold (an affiliate of HBED), put the estimates to be 2.23 million tonnes grading 3.6g/tonne (Northern Miner, March 12, 1990). This suggested a gold price of more than $400 would be needed for the mine to be profitable. The gold prices were extremely low at the time, therefore, the development of a mine was put on hold.
Golden Band Resources optioned Mingold’s 44.83% interest with the right to earn 100% of this interest, in 1992. Golden Band proceeded to complete a $300,000, 18 hole, initial phase of drilling to test for additional shallow reserves. The most encouraging holes resulted in 2 holes returning 12.7g Au over 1.1 metres in the first, and 5.1g Au over 6.2 metres in the second (Northern Miner, August 21, 1992).
In 1994, Granduc Mining Corporation, which was an amalgamation of Cazador Resources and Granduc Mining Inc. (Northern Miner, November 22, 1993), acquired the option of Golden Band Resources to earn Mingold Resources’ 44.8% interest in the Farley lake for $500,000 in Granduc shares (Northern Miner, March 7, 1994). Granduc also signed a letter of intent of purchase for MMR’s 55.2% controlling interest in the property, for a similar amount. At this time, by investing $10 million in the project, Granduc could earn up to 49% interest in Keystone from DCC equities, Black Hawk’s Parent Company.
In 1996, Granduc and Black Hawk merged to form the new Black Hawk Mining Inc. with 100% ownership of the Farley Lake deposit (Northern Miner, February 2, 1996). Open pit mining at Farley Lake began in August of 1996, as Black Hawk phased out the nearby BT pit mine (See: Mind No. 1043). All mining operations in the area were smoothly transitioned to the Wendy Pit. Reserves at the time were estimated at 1.4 million tonnes grading 3.9g/tonne Au (Northern Miner, August 19th, 1996).
By 1997, the Keystone Gold Project had shown an increase by 60% over the 1996 production, due to the increased grade. The East Pit was also brought into production that year. In late 1998, the Wendy pit was excavated to its ultimate depth, the de-watering system was decommissioned, and the pit allowed to flood.
The Farley Lake mine completed the mining operations of the East Pit in November 1999. The mine and mill was put on hold and maintenance, in case any new deposits were discovered in the area. In 2000, $1.2 million was spent towards reclamation and rehabilitation programs, including treatment of effluent water in the holding ponds, and the clean up and shut down of the Lynn Mill, this work continued until late 2001 (Black Hawk Mining Inc., Annual Report 2000).
HISTORY OF PRODUCTION
N/A
REFERENCES
Year Ore Milled
(Tonnes) Average Grade (g/tonne) Gold Production(oz)
1999 52,125
1998 473,652 4.14 59,647
1997 449,028 5.19 67,067
1996* 468,252 3.22 41,619
*1996 statistics are combined with BT pit, which phased out in June (See: Mind No. 1043)
All statistics from Black Hawk Mining Annual Reports, 1997-1998, 2000

REFERENCES

Black Hawk Mining Inc.
2000: Annual Report.
1998: Annual Report
1997: Annual Report
1996: Annual Report
Davies, J.F., Bannatyne, G.B., Barry, G.S. and McCabe, H.R.
1962: Geology and Mineral Resources of Manitoba, p. 130, Manitoba Mines Branch.
Fedikow, M.A.F., Baldwin, D.A. and Taylor, C.
1986a: Gold mineralization associated with the Agassiz metallotect and the Johnson Shear Zone, Lynn Lake greenstone belt, Manitoba; in Gold in the Western Shield Symposium (L.A. Clark, ed.); Canadian Institute of Mining and Metallurgy, Special Volume 38, 1986, p. 361-377.
Fyon, J.A., Crocket, J.H., and Schwartz, H.P.
1983: The Carshaw and Malga iron-formation-hosted gold deposits of the Timmins area; in The Geology of Gold in Ontario; Ontario Geological Survey, Miscellaneous Paper 110, p. 98-110.
Manitoba Mines Branch
Non-confidential Assessment File (91041, 91836); Manitoba Mineral Resources Ltd., News release (February 24, 1986).
Milligan, G.C.
1960: Geology of the Lynn Lake District, Publication 57-1, p. 261, Manitoba Mines Branch.

Northern Miner
1996: “ Prospects brighten for Black Hawk”, August 19.
1996: “ Black Hawk and Granduc Mining sign merger deal”, February 2.
1994: “ Exploration ’94 – Busy Manitoba exploration scene”, March 7.
1993: “ Granduc reviews mill expansion”, November 22.
1992: “ Cazador in option deal in northern Manitoba”, August 21.
1990: “ Manitoba suffers slowdown in drilling activity”, March 12.
Phillips, G.N., Groves, D.I., and Martin, J.E.
1984: An epigenetic origin for Archean banded iron-formation-hosted gold deposits; in Economic Geology, v. 79, p. 162-171.
Stanton, M.S.
1948: Geology of the Farley Lake area; Manitoba Mines Branch, Preliminary Report 47-5, 22 p.
MAP REFERENCES
Map 47-5
Farley Lake area, (Geolo), Scale 1:63 360, Manitoba Mines Branch.
Map 64C/16, Barrington Lake
Topo, Sc. 1:50 000, Surveys and Mapping Branch, Ottawa. NAD 1927, 3rd Edition, 1984.
Map 1016A
Reindeer Lake, (Geolo), Scale 1:506 880 Geological Survey of Canada (1953).
Map 2386G
Barrington Lake, (Aeromag), Scale 1:63 360, Manitoba Mines Branch.
Map No. 3
Barrington Lake, (Geol.), Scale 1:63 360 accompany publication by Milligan (1960), Manitoba Mines Branch, Publication 57-1.
Map NTS 64C
Bedrock Geology Compilation Map Series, 1:250 000, Granville
Lake, Manitoba Energy and Mines, Geological Services.
Preliminary Map 1980 L-1
Barrington Lake, (Geol.), Scale 1:50 000, Manitoba Mineral Resources Division.
URL
www.bhkmining.com
Images
Images/0996-1
REMARKS
N/A
NOTES
N/A
Compiled/Revised by:
JR; JJJ
Date
10-87; 05-02