November  29, 2011, Vancouver, BC � Niblack Mineral Development Inc. (TSX-V: NIB) or �the Company�  and joint venture partner, Heatherdale Resources Ltd. (TSX-V: HTR) announce a new mineral resource estimate for the Lookout and adjacent Trio deposits at the Niblack copper-gold-zinc-silver project in southeast Alaska, increasing total resource tonnes estimated at previous February 2011 metal prices in all categories by 31%.

Lookout and Trio are two of six known polymetallic volcanogenic massive sulphide (VMS) deposits within the 10 square-mile Niblack property, all of which remain open, and are candidates for future resource expansion. Based on underground delineation drilling completed during 2011, the new resource model outlines a 33% increase in the Indicated Resource tonnes for the Lookout Deposit, while Inferred Resources at the Trio Deposit have increased by 29%.

The updated mineral resource represents a significant milestone for the joint venture and the Niblack Project and has resulted in a more refined understanding of the geometry and grade of the deposits. The new resource model is expected to significantly enhance the accuracy and longevity of the mine model currently being developed within the Niblack Project Preliminary Economic Assessment (PEA) study.

The sizable increase in the volume of defined resources will provide the impetus for completion of a technically and financially robust PEA for the Niblack Project, which is expected to be completed early in 2012.

The new mineral resource estimate for the Lookout and Trio deposits is based on drilling completed to November 4, 2011, and includes a database of 373 drill holes. Mineralization has been modeled as sub-seafloor replacement and accumulation-style VMS deposits. The new estimate utilizes three-dimensional geostatistical modeling techniques and estimation parameters based on careful study of the geologic setting at Niblack.

Mineral resources at a US$50 NSR cutoff and updated long-term metal prices are tabulated below.

Notes: US$50 Net Smelter Return (NSR) cutoff uses long-term metal forecasts: gold US$1150/oz, silver US$20.00/oz, copper US$2.50/lb, and zinc US$1.00/lb; Recoveries (used for all NSR calculations) to Cu concentrate of 95% Cu, 56% Au and 53% Ag with payable metal factors of 96.5% for Cu, 90.7% for Au, and 89.5% for Ag; to Zn concentrate of 93% Zn, 16% Au, and 24% Ag with payable metal factors of 85% for Zn, 80% for Au and 20% for Ag.  Detailed engineering studies will determine the best cutoff.

The expansion of Indicated Resources within the Lookout Deposit occurred along the eastern down-dip extension. The high-grade area in the central portion of the Lookout Deposit, considered to be ideal as a starter zone for successful underground mine development, was confirmed by delineation drilling. Current outlined dimensions of the Lookout Deposit are approximately 2,200 feet by 1,700 feet, with an average thickness of 70 feet.

The 29% expansion of Inferred Resource tonnage at the Trio Deposit further demonstrates the excellent potential for resource expansion at Niblack. Current outlined dimensions of the Trio Deposit are approximately 1,100 feet by 350 feet, with an average thickness of 220 feet.

In addition to defined tonnes and grade, the geometry and continuity of the Lookout and Trio deposits � in particular their thicknesses � make them attractive candidates for low-cost underground mining.

To date, 43-101 compliant mineral resource estimates have been prepared for the Lookout and Trio deposits, although there are four other known VMS deposits at Niblack � including Mammoth, Dama, Lindsy and the historic Niblack mine. All deposits, including Lookout and Trio, remain open and are candidates for future resource expansion.

A graphic representation of the Lookout and Trio deposits is available at: http://niblack.com/project_areas/united_states/niblack/

A technical report documenting the results of the new mineral resource estimate will be filed at www.sedar.com.

Resource estimates were completed by Deon Van Der Heever, Pr. Sci. Nat., Senior Manager Mineral Resources for Hunter Dickinson Inc. (HDI), a Qualified Person who is not independent of the Company. The 2011 mineral resource estimates were reviewed and verified by SRK Consulting (SRK).  SRK will follow up with the updated NI-43-101 technical report.  

About Niblack Mineral Development Inc.
Niblack Mineral Development Inc. (TSX-V: NIB) is an exploration and development company with a number of mineral rich assets in South East Alaska.  The Company�s principal asset is its interest in the advanced stage copper-gold-zinc-silver Niblack Project.  This project is currently in a joint venture operated by Heatherdale. On October 25, 2011, Niblack and Heatherdale entered into a definitive arrangement agreement (the "Arrangement Agreement"), which provides that Heatherdale will acquire all of the common shares of Niblack in exchange for Heatherdale shares, on the basis of 0.50 Heatherdale share per Niblack common share.

Peter Kleespies, P.Geol., a Qualified Person as defined under National Instrument 43-101, is supervising the exploration and quality assurance and quality control programs on behalf of Niblack and has reviewed and approved the content of this release.

Niblack Mineral Development Inc. is a member of the Discovery Group of companies, for more information on the group visit www.discoveryexp.com.

On behalf of the Board
Niblack Mineral Development Inc.
/s/"John Williamson"
President, CEO & Director

For further information about Niblack Mineral Development Inc. or this news release, please contact:

Brian Budd
Director of Corp. Development
Email: brianb@niblack.com
Tel. 604-697-2861
Website: www.niblack.com Mobile URL: m.niblack.com

Sample preparation and analysis for the Niblack project is done at ISO 9001 accredited ALS Chemex laboratories in Vancouver, BC. All samples are assayed for gold by 30 g fire assay fusion with Atomic Absorption Spectroscopy (AAS) finish. Copper, silver, zinc, lead and 29 additional elements are determined for all samples by four acid digestion, followed by ICP-AES finish. All over-limit copper, zinc or lead results (greater than 10%) and all over-limit silver results (greater than 200 grams per tonne) are re-assayed by high grade single element four acid digestion ICP-AES or AAS analysis. As part of a comprehensive QA/QC program, one standard is inserted into the sample stream in each group of 20 samples, as well as one or more field blanks in each analytical batch. One sample in each group of 20 is a duplicate, which is analyzed by Acme Analytical Laboratories in Vancouver.

"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."

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that the company expects are forward looking statements. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.

Niblack Project Additional Resources (PDF)

 

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