Blackstone Signs Letter of Intent on its Norbotten Project and Announces Private Placement
15 December 2010 - 2:55AM
Marketwired
Blackstone Ventures Inc. (TSX VENTURE: BLV) announces that
Blackstone and Thomas Mining Developments Ltd. (TMD) have signed a
Letter of Intent (LOI) whereby TMD can earn up to a 75% interest in
Blackstone's Norbotten iron-oxide-copper-gold (IOCG) project
located in northern Sweden.
Under the terms of the agreement TMD can earn a 55% interest in
the project by completing $5,000,000 in expenditures within four
years of signing a definitive agreement. Upon completion of these
expenditures a joint venture would be formed between TMD and
Blackstone. TMD will have the option to increase its interest in
the project to 65% by sole funding the cost of a pre-feasibility
study. TMD will have an additional option to increase its interest
to 75% by sole funding the cost of a bankable feasibility study.
TMD is a private company which identifies and explores for high
quality exploration projects worldwide for Cliffs Natural
Resources.
Additionally Blackstone wishes to report that it has entered
into an agreement with Cliffs Natural Resources Inc. (Cliffs) for a
private placement of up to 11,916,666 common shares at a price of 6
cents per share for total gross proceeds of up to approximately
$715,000. Upon closing of the private placement Cliffs will own
9.9% of the issued and outstanding shares in Blackstone. Cliffs
(NYSE: CLF)(Paris: CLF) is an international mining and natural
resources company. A member of the S&P 500 Index, Cliffs is the
largest producer of iron ore pellets in North America, a major
supplier of direct-shipping lump and fines iron ore out of
Australia and a significant producer of metallurgical coal.
About the Norbotten Iron Oxide-Copper-Gold (IOCG) Project
The project is located just 70 kilometres east of the giant
Kiruna Iron Ore mines (greater than 3 billion tonnes of production
and resources) and Boliden's giant Aitik Cu-Au Mine (proven
reserves at January 1, 2007 of 526 million tonnes @ 0.28% Cu,
0.2g/t Au, 2 g/t Ag) in northeastern Sweden. The Aitik Cu-Au mine
is one of the largest copper producers in Europe having produced
173,000 tonnes of copper in 2008. In 2009 Blackstone completed
seven diamond drill holes totaling 895 metres in which the company
identified IOCG alteration and copper mineralization in a highly
under-explored area of the world-class Kiruna District.
Drill holes cut disseminated pyrite, lesser disseminated and
veined chalcopyrite and magnetite hosted by strong K-Feldspar
altered rocks with surrounding muscovite-biotite-scapolite-hematite
alteration. Alteration zones intersected in these drill holes
ranged from core lengths of less than 20 to 80 metres. The best
result of 4.26% Cu and 1.88 gpt Au over 1.4 metres was returned in
hole NOR-001. A northeast trending structural zone has been
identified from a review of the regional magnetic survey and has
been verified in diamond drilling. IOCG type deposits typically
form in association with large scale regional structures in zones
of strong iron oxide and potassic alteration. The Company holds
close to 30 kilometres of the Kolari Trend (eastern part of the
Kiruna District) host to IOCG deposits in Finland. The Aitik
deposit and the Kolari district deposits in Finland display similar
alteration associated with copper mineralization. To date
Blackstone has explored less than 10% of its land holdings at
Norbotten.
The company also announces the resignation of Jari Paakki as
Vice President of Exploration. The company would like to thank Jari
for his contributions in generating the company's Scandinavian
projects and wish him well in his future endeavours.
On behalf of Blackstone Ventures Inc.
Donald McInnes, Chairman
Caution Regarding Forward-Looking Statements - This news release
contains certain forward-looking statements, including statements
regarding the business and anticipated financial performance of the
Company. These statements are subject to a number of risks and
uncertainties. Actual results may differ materially from results
contemplated by the forward-looking statements. When relying on
forward-looking statements to make decisions, investors and others
should carefully consider the foregoing factors and other
uncertainties and should not place undue reliance on such
forward-looking statements. The Company does not undertake to
update any forward looking statements, oral or written, made by
itself or on its behalf.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Blackstone Ventures Inc. Investor Relations
604-687-3929 www.blv.ca
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