I got bored and busy a year ago (new Baby didn’t help) and let the blog slide.

I am going to change things up a bit and be more forthcoming with regards to my strategies for trading.

For the analytics out there you can chart my progress in real time as I will be making trading suggestions as I see them along with execution. For pain and humiliation purposes I will tally my results (hopefully daily but probably weekly). The toddler is a daughter after all and they seem to take more time.

This will be akin a true traders website so if you GIC/CD refugees can’t handle the risk of real return and someone actually sticking their neck out and sharing what they are doing then don’t read or just lurk.

I yanked my comments page due to the huge amount of spam I was getting. If I see some real traffic numbers going forward I will probably just give out an email address.

Take care,
Andrew Thomas

Tyhee Development Corp Discovers Two New Gold Zones on Yellowknife Gold Project and Drilling Continues to Expand the Clan Lake Main Zone

TSX Venture: TDC

VANCOUVER, Aug. 11 /PRNewswire-FirstCall/ – Tyhee Development Corp. (TSX-V, TDC) (the “Company”) is pleased to announce the discovery of two new gold zones on its Yellowknife Gold Project, Northwest Territories, Canada. These new gold zones, The Bear and The Spud Zones, were discovered within the 7 kilometre long, 1.2 kilometre wide Clan Lake Structure which now hosts eight gold zones.

The new gold zones are areas of elevated gold content, shown by grab sample assays within a lithological and structural setting consistent with the Main Zone. The gold is associated with quartz veins, silicification and sericitization of host rocks. Sulphide mineralization includes pyrrhotite, arsenopyrite and occasional trace galena, sphalerite and chalcopyrite.


The Bear Zone, approximately 100 metres wide and 700 metres in length, is hosted by intermediate volcanic rocks and a gabbro intrusive body. The zone is 150 metres to the northeast and parallel to the Clan Lake Main Zone which hosts a 354,000 ounce of Measured and Indicated Gold Resource including 38,400 ounces Probable Reserves. (see press release dated July 22, 2010). Fire assay results from 18 grab samples range from 0.5 gpt gold up to 10.67 gpt gold.

The Spud zone appears to be as much as 600 metres in length, 150 metres to the south-west and parallel to the Main Zone. The Spud Zone is hosted in intermediate to felsic volcanic rocks. Fire assay results from 17 grab samples range from 0.5 gpt gold up to 82.33 gpt gold.

Dave Webb, President & CEO of Tyhee reports “Tyhee continues to increase the potential of the Yellowknife Gold Project at Clan Lake where a 1,200 metre wide mineralized structure has been traced for over 7 kilometres. This structure hosts large zones of gold mineralization set in an en echelon pattern. A 2,000 metre portion of this structure (1,200 to 1,500 metres exposed) contains an aggregate width of 600 m in five gold zones.”

Results from an additional three diamond drillholes have been received and have expanded the Clan Lake Main Zone by another 200 metres. Results include 77.5 metres of 0.80 gpt gold including 4.5 m of 7.37 gpt in CL166, 30.0 metres of 1.11 gpt gold including 12.5 m of 1.84 gpt gold in CL165. Results from three additional drillholes and further surface samples are pending.

Tyhee has two drill rigs at Clan Lake and one at the Ormsby Zone, all of which are on standby pending further review of the recent results.

Tyhee Development Corp. is a gold exploration and development company working to start gold production in the historic Yellowknife Gold Camp, NWT, Canada. It is the largest property holder in this camp and has the largest exploration and development program underway in the region. Its principal asset, the Yellowknife Gold Project includes the Nicholas Lake, Ormsby, Bruce, Goodwin Lake, and Clan Lake Gold Zones. All are located on mineral claims and mining leases 50 to 90 km north of Yellowknife, NWT and are expected to feed a single milling operation. (Note: only Nicholas Lake and Ormsby Zones are being included for permitting purposes).

Tyhee completes fire assays on drill core samples using 30 gram aliquots with ICP-ES finish for gold analyses, prepared at Acme Analytical Laboratories Ltd. in Yellowknife, and finished at Acme Analytical Laboratories Ltd in Vancouver. As well, a semi-quantitative multi-element analysis is run on 0.5 gm aliquot samples leached in a hot aqua regia solution and measured using ICP-ES techniques. Tyhee conducts a rigorous QA/QC program of inserting blanks and duplicates in the field and standards in the laboratory. The laboratory also conducted their own independent QA/QC program including inserting their own standards and rerunning samples from pulped material and reject material. These results were provided to Tyhee. All standards, duplicates, blanks and check assays returned acceptable results. Mr. V. Pratico, P.Geol., the designated QP within the meaning of NI 43-101, has reviewed this release and approves of its content.

Neither the 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.

Recent diamond drillhole results from Clan Lake Main Zone.
From To width Gold Grade
DDH (metres) (metres) (metres) (gpt)
CL163 151.0 152.5 1.5 3.43
CL165 120.0 125.0 5.0 1.23
and 167.0 197.0 30.0 1.11
incl. 167.0 179.5 12.5 1.84
and 237.0 239.0 2.0 11.98
and 272.0 274.0 2.0 1.59
and 309.8 310.8 1.0 1.35
and 324.5 326.0 1.5 1.06
and 341.0 342.0 1.0 2.75
and 352.0 353.0 1.0 2.23
CL166 35.0 40.0 5.0 2.60
and 155.0 156.5 1.5 3.00
and 181.0 183.0 2.0 1.35
and 189.0 191.0 2.0 1.45
and 218.0 295.5 77.5 0.80
incl. 231.0 232.0 1.0 7.75
and 246.2 248.0 1.8 2.52
and 279.0 283.5 4.5 7.37
and 292.8 294.0 1.3 2.10
True widths are not known but are estimated to be greater than 80% of the
reported widths (core lengths)

SOURCE Tyhee Development Corp.

Tyhee Development Corp Reports Positive Preliminary Feasibility Study On Yellowknife Gold Project

TSX Venture: TDC

VANCOUVER, July 22 /PRNewswire-FirstCall/ – Tyhee Development Corp. (TSX-V, TDC) (the “Company”) is pleased to announce the completion of a Preliminary Feasibility Study on the Yellowknife Gold Project, located from 50 to 90 kilometres north of Yellowknife, NWT, Canada.

The Preliminary Feasibility Study (PFS) considers all aspects of the project including mining, processing, and related infrastructure. Gold mineralization from the Ormsby, Nicholas Lake Main and Clan Lake Main Zones are considered in this study. The Bruce Lake and Goodwin Lake Vad Zones along with all inferred resources are excluded from the economic model.


A combination of open pit mining at the Ormsby and Clan Lake Main Zones and underground mining at Nicholas Lake Main and Ormsby Zones feeding a 3,000 tonne per day conventional mill at the Ormsby Zone site is contemplated. The underground potential at Clan Lake was not considered as the deposit is in an early stage of assessment and its full lateral extent has not been established. A total of 7,560,000 tonnes grading 3.34 recovered grams per tonne over a 7 1/2 year mine life including stockpiles will produce 811,200 ounces of gold. Potential for resource expansion occurs in all of the zones to depth, as well as along strike at the Clan Lake Main and Goodwin Lake Vad Zones. Additional gold zones at Clan Lake contribute to the overall resource potential of the project.

Dave Webb, President & CEO reports “We are very pleased to have demonstrated the economic viability of the Yellowknife Gold Project under the stated parameters. The project generates a discounted Net Present Value (NPV) of CAD$71.3 million with a base case scenario of US$950/ounce of gold and a 5% discount rate. At more current prices, the economics become very robust with a NPV exceeding $200 million and IRR exceeding 38%. Tyhee converted 52% of its Measured and Indicated Gold Resource into Proven and Probable Reserves (Ormsby, Nicholas Lake, and Clan Lake (within 105m of surface)). The reduction in the PFS Internal Rate of Return (IRR) and NPV from the results of the Preliminary Assessment is attributed the exclusion of inferred resources (269,000 ounces of gold) all of the Bruce Lake Zone, only considering Proven and Probable Reserves, and the application of normal extraction rates”. Webb continues to point out that “this not only validates the findings from the Preliminary Assessment, the inclusion of Clan Lake, although only recently acquired, confirms the concept of one central mill treating ores from multiple open pit and underground sources. This greatly expands our ability to develop additional resources.”

Webb notes that “Archean Gold Deposits like the Yellowknife Gold Project are not easy to evaluate due to their limited lateral but significant vertical extent. Since it is usually more costly to explore to depth than along strike, these deposits can be expensive to develop to the limits of their mineralization, which may extend to depths of several thousands of metres. For example, mines such as those in Timmins, Val D’Or, Red Lake and Yellowknife characteristically started with only a short mine life but some have operated for several decades with the larger mines lasting for half a century or more.”

Preliminary Feasibility Economic Details

The base case considers a 3,000 tonne per day operation, initially as an open pit at Ormsby with underground operations at Nicholas Lake. In year 4 underground mining will commence at Ormsby and the open pit equipment moving to Clan Lake for start up in year 6. Production will be on average 108,000 ounces of gold per year for 7.5 years (total 811,200 ounces) at an average operating cost of US$541 per recovered ounce of gold. Initial capital costs are estimated to be CAD$170 million with a contingency of CAD$20 million. At a base case of US$950 per ounce of gold, and a 5% discount rate the project has an IRR of 16.1% and a NPV of CAD$71.3 million before taxes. The $US/$CAN rate is assumed to be 0.93.

———————————
BEFORE
Discount TAX NPV ($M)
———————————
0% 119.0
———————————
5% 71.3
———————————
7% 55.5
———————————
10% 34.5
———————————

Sensitivities

——————————————–
Gold Price BEFORE TAX
US$ NPV ($M) IRR
——————————————–
750 -75.1 -7.7%
——————————————–
850 -1.7 4.7%
——————————————–
950 71.3 16.1%
——————————————–
1,050 144.6 27.3%
——————————————–
1,150 217.7 38.8%
——————————————–

The Ormsby open pit mine will extract 5.2 million tonnes of ore grading 3.20 gpt with an overall strip ratio of 14.2:1. The Nicholas Lake underground mine will extract 975 thousand tonnes grading 4.36 gpt concurrent with the Ormsby open pit. Underground operations at the Ormsby Zone will extract 976 thousand tonnes grading 5.60 gpt and commence upon completion of the Nicholas Lake component. Mining at Clan Lake will extract 441 thousand tonnes of ore grading 2.95 gpt from an open pit and commence near to the completion of the Ormsby open pit.

All ores are non-refractory and will be processed at a conventional crusher and grinding mill with separation utilizing gravity, flotation of the gravity tails, regrind of the flotation concentrate and cyanidation with Merrill Crowe recovery enabling Dore bars to be poured on site. Gold recoveries of 92% for Ormsby and Clan Lake ores and 90% for Nicholas Lake ores were established.

Power will be provided by a line connected to the electric grid at Yellowknife which proves to be better in the long term than the alternative of diesel generated power. Haul roads will connect the various gold zones to the main site at the Ormsby where all services, processing and warehousing will be established. The infrastructure will include a 150 man camp, 1,000 m airstrip (already installed), processing and waste treatment facilities.

Overall pit slope angles are estimated at 50 degrees but do vary according to geotechnical conditions.

Total capital costs are projected to be CAD$218 million over the life of the project including reclamation.

The financial model assumes 100% equity financing although alternative financial options exist including debt financing.

————————————————————————-
Yellowknife Gold Projects Mineral Resources(1)
————————————————————————-
Nicholas Goodwin
Ormsby Lake Main Bruce Lake Clan Lake Lake Vad Total
Category Zone Zone Zone Main Zone Zone Resources
————————————————————————-
Measured
————————————————————————-
Tonnes 3,003,000 1,249,000 – – – 4,252,000
————————————————————————-
Grams Gold
per Tonne 3.41 3.81 – – – 3.53
————————————————————————-
Troy Ounces,
Gold 329,000 153,000 – – – 482,000
————————————————————————-
Indicated
————————————————————————-
Tonnes 7,898,000 1,484,000 791,000 3,021,000 – 13,194,000
————————————————————————-
Grams Gold
per Tonne 3.42 3.32 3.31 3.64 – 3.45
————————————————————————-
Troy Ounces,
Gold 869,000 158,000 84,000 354,000 – 1,465,000
————————————————————————-
Inferred
————————————————————————-
Tonnes 223,000 955,000 396,000 – 971,000 2,545,000
————————————————————————-
Grams Gold
per Tonne 3.14 3.92 2.76 – 2.91 3.29
————————————————————————-
Troy Ounces,
Gold 23,000 120,000 35,000 – 91,000 269,000
————————————————————————-

————————————————————————-
Yellowknife Gold Projects Mineral Reserves(1)
————————————————————————-
Ormsby Nicholas Clan
Ormsby Zone Zone Lake Lake Total
Category Open Pit Underground Underground Open Pit Reserves
————————————————————————-
Proven
————————————————————————-
Tonnes 2,788,000 134,000 – 2,922,000
————————————————————————-
Grams Gold per
Tonne Recovered 2.77 6.37 – 2.94
————————————————————————-
Troy Ounces,
Gold Recovered 248,800 27,400 – 276,200
————————————————————————-
Probable
————————————————————————-
Tonnes 2,378,000 976,000 841,000 441,000 4,636,000
————————————————————————-
Grams Gold per
Tonne Recovered 3.14 5.15 3.52 2.71 3.59
————————————————————————-
Troy Ounces, Gold
Recovered 239,900 161,500 95,200 38,400 535,000
————————————————————————-
Total
————————————————————————-
Tonnes 5,166,000 976,000 975,000 441,000 7,558,000
————————————————————————-
Grams Gold per
Tonne Recovered 2.94 5.15 3.92 2.71 3.34
————————————————————————-
Troy Ounces, Gold
Recovered 488,700 161,500 122,600 38,400 811,200
————————————————————————-

(1) Mineral Reserves are exclusive of Mineral Resources and comply with NI 43-101 standards. Open pit Proven and Probable Reserves are determined using recovered gold values based upon a US$950 per ounce gold price and 0.93 CAD$. Underground Probable Reserves are determined using a 2.5 gpt cut-off Mineral Resources for Ormsby, Bruce, Goodwin Vad and Clan Main Zones are at a 1.25 gpt cut-off. The Nicholas Lake Zone is at a 1.1 gpt cut-off. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability, and except as reported, there is no guarantee that any resource will become a reserve.

EBA Engineering Consultants Ltd (EBA), the lead consultants on the study, recommends that Tyhee initiate a Feasibility Study to refine the estimates and optimize the operations with respect to a reduction in strip ratio, further geotechnical work at Clan Lake, revised underground optimized designs and further trade off studies with respect to power and transportation. Capital costs were completed by Merit Consultants in cooperation with EBA. Good potential for resource expansion exists and this should be tested more fully.

The Preliminary Feasibility Study was prepared by several independent and dependent qualified persons including EBA Engineering Consultants Ltd. Authors N. Eric Fier, CPG, P.Eng., and Lara Reggin, P.Geol, Frank Wright, P.Eng., John Fox, P.Eng., Jerry Kaehne, Dipl.T., Jay Collins, P.Eng with Merit Consultants and Val Pratico, P.Geol. of Tyhee. All QP’s are compliant within the meaning of NI 43-101, have prepared the Preliminary Feasibility Study and have reviewed and approved the technical information in this news release.

Tyhee Development Corp. is a gold exploration and development company working to start gold production in the historic Yellowknife Gold Camp, NWT, Canada. It is the largest property holder in this camp and has the largest exploration and development program underway in the region. Its principal asset, the Yellowknife Gold Project includes the Nicholas Lake, Ormsby, Bruce, Goodwin Lake, and Clan Lake Gold Zones. All are located on mineral claims and mining leases 50 to 90 km north of Yellowknife, NWT and are expected to feed a single milling operation. (Note: only Nicholas Lake and Ormsby Zones are being included for permitting purposes).

Neither the 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.

SOURCE Tyhee Development Corp.

Interesting Comments From Marc Faber

I feel that most investors take far too many risks – often with borrowed money – and fail to diversify sufficiently. They also have little patience, very short-term time horizons and no tolerance for losses. Finally, their expectations about investment returns are completely unrealistic… Most investors buy a stock or make an investment with the view that within a month the return should be between 10% and 20%.


A real return of around 4% per annum is about what an investor (exclusive of costs, and without making the mistake to buy “high” and sell “low”) could expect to achieve over longer periods of time… If you can achieve an annual average real return of just 3% on all your assets (inflation adjusted), you will leave a huge fortune to your children.

For the average investor like myself, I prefer diversification and no leverage. I have seen time and again investors (including myself) be right about an asset class’ future performance but fail to convert those views into any capital gains… All I wish to say to my readers who are not managing risk on a daily basis is that the prime consideration should always be capital preservation and avoiding large losses.

Tyhee Development Corp Reports Receipt of Preliminary Feasibility Study and Identifies New Project Options

TSX Venture: TDC

VANCOUVER, July 6 /PRNewswire-FirstCall/ – Tyhee Development Corp. (TSX Venture, TDC) (the “Company”) is pleased to announce the receipt of a Preliminary Feasibility Study (PFS) on the Yellowknife Gold Project.

Tyhee has reviewed a draft copy of a preliminary feasibility study on the Yellowknife Gold Project. Following this review Tyhee and EBA Engineering Consultants Ltd. identified a number of options available to the project that had not previously been considered and that could have material impact on the project. A review of these options and their impact, which is anticipated to improve project economics, will be necessary prior to the release of the preliminary feasibility study. It is expected that the review process will delay the release of the PFS for few weeks while management identifies the best option.

In other news, six diamond drillholes have been completed at Clan Lake. These holes are at various stages of processing and results will be reported as they become available. Mapping and prospecting at Clan Lake has focused on the north eastern margins of the Clan Lake Main Zone and prospecting work will continue to the northeast where additional subparallel gold zones have been identified but are poorly defined.


Tyhee Development Corp. is a gold exploration and development company working to start gold production in the historic Yellowknife Gold Camp, NWT, Canada. It is the largest property holder in this camp and has the largest exploration and development program underway in the region. Its principal asset, the Yellowknife Gold Project includes the Nicholas Lake, Ormsby, Bruce, Goodwin Lake, and Clan Lake Gold Zones. All are located on mineral claims and mining leases 50 to 90 km north of Yellowknife, NWT and are expected to feed a single milling operation. (Note: only Nicholas Lake and Ormsby Zones are being included for permitting purposes).

Neither the 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.

SOURCE Tyhee Development Corp

TSX Venture: TDC

VANCOUVER, March 16 /PRNewswire-FirstCall/ – Tyhee Development Corp. (TSX Venture, TDC) (the “Company”) announced the first results from its 10,000 metre drill program at Clan Lake, Yellowknife Gold Project, NWT Canada.


Results include 3.74 grams per tonne (gpt) of gold over 7.5 metres (m) in CL144 and 2.64 gpt gold over 9.5 m and 3.48 gpt gold over 6.5 m in CL143

“We are pleased to have started our 2010 winter drill program with such positive results” reports Dave Webb, President & CEO. “We have now completed fifteen of the thirty three diamond drillholes which are planned to test portions of the Clan Lake Main Zone up to 800 metres beyond the limits previously drilled. We have assay results back from three drillholes and expect a steady stream of assay results to be released over the next several months.”

Tyhee has exchanged two of the diamond drills at Clan Lake for self-propelled Ultra Low Ground Pressure Buggy Drills, capable of moving about much of the property with minimal impact on the ground. “This will allow flexibility in Tyhee’s program going into the summer at much lower costs than a helicopter supported program.” reports Webb.

The drill results reported above are from the initial stages of Tyhee’s winter drill program. The first six drill holes are located near the northwest portion of the Main Zone and target a gap within the gold deposit. The remainder of the drill program is focused on the southeast extension of the Main Zone. Two diamond drills are actively working on the Clan Lake program while diamond drilling on the Ormsby Zone was completed this past week.

The Clan Lake Main Zone is located 50 km north of Yellowknife NWT. Mineralization is largely constrained to a 6.5 kilometre long, 900 metres wide north-northeast striking domain (open in strike). Mineralization consists of altered, silicified, and sulphidized rocks that generally strike to the northwest and individually may exceed 100 metres in width. The Main Zone Resource (354,000 ounces of Indicated Resource) is developed from 90 diamond drill holes that total 17,000 metres, confirming mineralization to a depth of 300 metres (open). Diamond drilling and trenching define the 1100 metre by 300 metre extent of the Main Zone. A map showing the location of the drillholes reported is attached to this release.

On a different note, Webb reports “We are also very pleased to see a statement from the Canadian Government. Minister of Finance Flaherty announced $11 million over two years “to accelerate the review process for resource projects in the North.” in this year’s budget.”

Preliminary Feasibility Study

Tyhee is on schedule for the completion of its Preliminary Feasibility Study. This is expected to be finished within the next three to four months. Metallurgical locked cycle tests on composite ore samples blended from the principal zones are being conducted to simulate operating conditions. This will also produce tailings products for ongoing environmental studies including cyanide destruction tests.

Winter Road

Tyhee also reports that it has successfully completed the resupply of over 400,000 litres of diesel fuel, all the required propane and miscellaneous materials and has removed all scrap and garbage from the site on this year’s winter road.

Tyhee Development Corp. is a gold exploration and development company working to start production in the historic Yellowknife Gold Camp, NWT, Canada. It is the largest property holder in this camp and has the largest exploration and development program underway in the region. Its principal asset, the Yellowknife Gold Project which includes the Nicholas Lake, Ormsby, Bruce, Goodwin Lake, and Clan Lake Gold Zones. All are located on mineral claims and mining leases 50 to 90 km north of Yellowknife, NWT. (Note: only Nicholas Lake and Ormsby Zones are being included for permitting purposes).

Tyhee completed fire assays on drill core samples using 30 gram aliquots with ICP-ES finish for gold analyses, prepared at Acme Analytical Laboratories Ltd. in Yellowknife, and finished at Acme Analytical Laboratories Ltd in Vancouver. A semi-quantitative multi-element analysis is run on 0.5 gm aliquot samples leached in a hot aqua regia solution and measured using ICP-ES techniques. Tyhee conducts a rigorous QA/QC program of inserting blanks and duplicates in the field and standards in the laboratory. The laboratory conducts their own independent QA/QC program including inserting their own standards and rerunning samples from pulped material and reject material. These results were provided to Tyhee. All standards, duplicates, blanks and check assays returned acceptable results. Mr. Val Pratico, P.Geol., the designated QP within the meaning of NI 43-101, has reviewed this release and approves of its content. A portion of the work reported herein has been funded by MineralFields Group through a private placement.

Neither the 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.

Table 1 Recent Assay Results from Current Drill Program at Clan Lake

    ---------------------------------------------------------
    Diamond         From          To       Width       Grade
    Drillhole    (metres)    (metres)    (metres)   gpt gold
    ---------------------------------------------------------
    CL143           23.5        25.0         1.5        1.32
    ---------------------------------------------------------
          and       30.0        39.5         9.5        2.64
    ---------------------------------------------------------
          and      178.0       179.5         1.5        1.35
    ---------------------------------------------------------
          and      242.0       248.5         6.5        3.48
    ---------------------------------------------------------
         incl      242.0       244.2         2.2        9.62
    ---------------------------------------------------------
    CL144           33.0        40.5         7.5        3.74
    ---------------------------------------------------------
    CL145           14.0        15.0         1.0        1.66
    ---------------------------------------------------------
          and       47.5        49.0         1.5        1.88
    ---------------------------------------------------------

SOURCE Tyhee Development Corp.

BlackPearl Announces 2009 Financial and Operating Results


CALGARY, ALBERTA–(Marketwire – Feb. 25, 2010) – BlackPearl Resources Inc. (”BlackPearl” or the “Company”) (TSX:PXX)(FIRST NORTH:PXXS) is pleased to announce its financial and operating results for the three and twelve months ended December 31, 2009.

Highlights/key accomplishments in 2009 included:

* At Onion Lake, the Company completed a 28 well development drilling program during the fourth quarter, which added approximately 2,000 boe/day (1,750 net to BlackPearl) of production. Over 200 further drilling locations were identified. In addition, we prepared a conceptual development plan for a SAGD thermal recovery project on a portion of the Onion Lake lands.

* At Blackrod, we filed an application to construct and operate a single well SAGD pilot. In connection with the planned pilot, we drilled 10 strat wells to confirm the areal extent of the reservoir, completed construction of the steam generator and commenced building a 31 kilometre road to the planned pilot facility site.

* At Mooney, we continued to operate and monitor a successful pilot polymer flood. Incremental oil recovery rates in excess of 11% have been achieved to date. We also commissioned external studies to optimize the type and quality of polymer to use, as well as to determine the applicability of adding alkaline or a surfactant as part of the polymer flood. A regulatory application to commence the first phase of a commercial polymer flood was filed late in the year.

* Enhanced the strength of the balance sheet with a $46 million equity financing; at December 31, 2009 the Company was debt free and had working capital of $58 million.

* Oil and gas production averaged 5,254 boe/day in 2009, a 32% decrease from 2008. The decrease in production in 2009 reflects the sale of 3,200 boe/day in mid 2008, as well as reduced drilling activity in 2009. Year-end production has increased to 6,400 boe/d.

* Revenues were impacted by lower commodity prices in 2009. Crude oil prices (WTI) averaged US$61.80 per barrel in 2009 compared with US$99.65 per barrel in 2008. As a result, revenues were $89.6 million in 2009, a 51% drop from 2008. The decrease also reflects a reduction of production levels as discussed above.

* Significantly reduced operating costs and administrative expenses. Operating costs were $15.36 per boe, a 14% drop from 2008 and general and administrative costs were $3.60 per boe compared with $5.34 per boe in 2008.

John Festival, President of BlackPearl, commenting on 2009 activities indicated that, “2009 was an interesting year for BlackPearl. The new management group was introduced at the beginning of the year and our immediate challenge was to deal with the effects of the global economic slowdown; oil prices were in the mid $30’s and our focus was on reducing expenses and maintaining a strong financial position. Oil prices started to recover in the spring and our focus changed to undertaking a detailed technical and economic review of all of our properties. During this time we determined which properties would be core areas for us and we made significant progress in establishing development plans for each of these core areas. Finally, in the fourth quarter we began to execute on our development plans, which included completing a 28 well drilling program at Onion Lake and filing development applications for our projects at Blackrod and Mooney. Implementation of this plan will continue throughout 2010 as we advance each of our three core areas. Capital expenditures were modest in 2009; however, we are now entering the execution stage of our strategy and we will triple our capital expenditures in 2010 compared to 2009. We continue to believe that our three core projects have the potential of providing up to 50,000 boe/day of production over the next few years.”

Commenting on fourth quarter results, Mr. Festival indicated that, “Crude oil prices were significantly higher in Q4 compared with 2008. As a result, our cash flow was over 400% more than in the fourth quarter in 2008. In addition, due to the recent drilling at Onion Lake, our year-end production was about 6,400 boe/day, 26% higher than our Q3 production.”

2010 Guidance

BlackPearl’s Board of Directors has approved a revised capital expenditure budget of $85-90 million for 2010, which will allow us to significantly advance the development of each of our three core areas. The major elements of this program will include drilling up to 50 development wells at Onion Lake, construction of the single well SAGD pilot at Blackrod and implementation of the first phase of the ASP (alkaline surfactant polymer) flood at Mooney.

With this planned capital program, we anticipate 2010 oil and gas production averaging about 6,400 boe/day, over 20% higher than 2009. This estimate is based on the Company selling about 600 boe/day of production through asset sales. We expect to exit 2010 at between 7,000 and 7,500 boe/d. Most of the production growth will come from the Onion Lake area. With the current pricing environment, this level of production is expected to generate $45-50 million in cash flow from operations (before working capital adjustments).

Financial and Operating Highlights
Three months ended
December 31     Twelve months ended
December 31
2009     2008     2009     2008

Daily sales volumes (1)
Oil (bbl/d)     4,506     4,952     4,324     6,182
Natural gas (mcf/d)     4,801     7,478     5,582     8,942
Combined  (boe/d)     5,306     6,198     5,254     7,672

Product pricing
Oil ($/bbl)     61.77     34.35     51.44     69.07
Natural gas ($/mcf)     4.62     6.51     4.10     8.11
Combined ($/boe)     56.69     36.28     46.74     65.36

($000’s, except per share and boe amounts)
Revenue
Oil and gas revenue – gross     27,674     20,687     89,637     183,536

Royalties ($/boe)     13.79     7.62     11.09     16.11
Transportation costs ($/boe)     1.52     1.36     1.81     1.30
Operating costs ($/boe)     14.85     18.06     15.36     17.77

Net income (loss) for the period     (3,897)     (83,686)     (47,315)     (78,862)
Per share, basic and diluted     (0.01)     (0.44)     (0.19)     (0.42)

Cash flow from operating activities, before working capital adjustments     14,677     3,623
29,004
72,120

Capital expenditures     17,559     32,769     27,878     107,367

Working Capital, end of period     57,995     6,452     57,995     6,452
Long term debt     -     -     -     -

Shares outstanding, end of period     261,960,717     189,241,716     261,960,717     189,241,716

(1) boe based on a conversion ratio of 6 mcf of gas to 1 barrel of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The Company’s financial statements, notes to the financial statements, management’s discussion and analysis and Annual Information Form have been filed on SEDAR (www.sedar.com) and are available on the Company’s website (www.blackpearlresources.ca). The Annual Information Form includes the Company’s reserves data for the period ended December 31, 2009 as evaluated by Sproule Associates Limited and other oil and gas information prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.

Forward-Looking Statements

Certain of the statements made and information contained herein is forward-looking statements and forward looking information (collectively referred to as “forward-looking statements”) within the meaning of Canadian securities laws. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, “plan”, “continuous”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “predict”, “targeting”, “seek”, “intend”, “could”, “potential” or similar words. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. In particular, this document contains forward-looking statements pertaining to the Company’s 2010 capital expenditure program, estimated production levels and anticipated cash flow from operations, estimated production lost from asset sales, development plans at Onion Lake, Blackrod and Mooney, and future drilling locations at Onion Lake.

The actual results could differ materially from those results anticipated in these forward-looking statements as a result of several risk factors. These factors include, but are not limited to, volatility of oil and natural gas prices, ability to replace reserves, uncertainties associated with estimating oil and gas reserves, substantial capital requirements and the Corporation’s ability to access additional capital, risks and uncertainties inherent in exploration and development activities, government regulation and changes in legislation, environmental matters, aboriginal claims, dependence on key personnel, availability of drilling equipment and skilled personnel, expiration of licenses and leases, competition, conflicts of interest, issuance of debt or equity, title to properties, variations in exchange rates and hedging and uncertainty in global financial markets. Further information regarding these risk factors may be found under the heading “Risk Factors” in the Company’s Annual Information Form.

With respect to forward-looking statements contained in this news release, we have made assumptions regarding future production levels; future oil and gas prices, future operating costs; timing and amount of capital expenditures, the ability to obtain financing on acceptable terms; availability of skilled labour and drilling and related equipment; general economic and financial market conditions; continuation of existing tax and regulatory regimes; and the ability to market oil and natural gas successfully to current and new customers. The forward-looking information in this release related to 2010 cash flow from operations were based on a US$72 per barrel WTI oil price, a Bow River heavy oil differential of US$10 per barrel and a US/Canadian dollar foreign exchange rate of 0.95. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Statements relating to “reserves” are forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the reserves described exist in the quantities predicted or estimated and can profitably be produced in the future.

Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to the Corporation and its shareholders.

Readers are also cautioned that the foregoing list of factors and risks is not exhaustive. Consequently, there is no representation by the Corporation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained in this news release are made as of the date hereof, and the Corporation does not undertake any obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.

BlackPearl’s Certified Advisor on First North is E. Öhman J:or Fondkommission AB.

Company Registration Number: 409596-1

The report for the three months ending March 31, 2010 will be published on or before May 14, 2010.

For more information, please contact
BlackPearl Resources Inc.
John Festival
President and Chief Executive Officer
(403) 215-8313
or
BlackPearl Resources Inc.
Don Cook
Chief Financial Officer
(403) 215-8313
(403) 265-8324 (FAX)
www.blackpearlresources.ca