Blackheath Resources Inc. (TSXV:BHR) is focused on the acquisition and development of strategic tungsten projects in Portugal. Management has unique expertise in the Portuguese tungsten sector, developed through its involvement with Primary Metals Inc., which held the Panasqueira tungsten mine and was bought out in 2007. Blackheath’s first acquisition is the past-producing Covas Tungsten/Gold project which will be advanced through exploration and development. The Company also holds options for a 100% interest in the attractive past-producing Borralha and Bejanca Tungsten projects in Portugal.
- Holds option for the past-producing Covas Tungsten/Gold project in Portugal as well as newly acquired licences for two additional past-producing Portuguese tungsten mines
- Tungsten prices have increased in recent years, currently ~$330/MTU ($33/kg)
- Covas has current historical resources* of 923,000 tonnes @ 0.78% WO3 or 7.8 kg per tonne and is open for expansion – also has very attractive potential for a multi-million tonne new Tungsten deposit plus Gold
- *Not a current NI43-101 resource estimate – See cautionary language in the Forward Looking Statements
- Phase 1 drill results include 7.98m of 2.11% WO3 and 2.42m of 1.15% WO3
- Borralha and Bejanca, both past producing Tungsten mines, will be assessed for Tungsten and also Tin with modern exploration techniques and early drilling
Covas Tungsten Project
The Covas property is located about 100 kilometres north of Porto, Portugal’s second largest city.
Covas is a past producer of tungsten and historic resources (indicated and inferred) on the property have been estimated at 922,900 tonnes of 0.78 per cent WO3 (tungsten trioxide), and mineralization is open to expansion. The price of tungsten has doubled over recent years and is currently approximately $36 per kilogram of contained tungsten trioxide. (These resources are historic in nature and have not been verified by the company or its consultants but are believed to be relevant although not compliant with current NI 43-101 standards.The resource estimates are reported as they exist in the historic records. The company has not done sufficient work to classify the historical resources as current mineral resources and therefore is not treating the historical Covas resources as current resources).
Phase 1 exploration at Covas has been completed – the program successfully confirmed and tested known skarn-related mineral zones and extensions as well as new targets. Highlights of the Phase 1 program included previously reported intercepts of high grade tungsten mineralization including 2.11% WO3 over 7.98 metres starting at a depth of 44.57 metres in Hole CO 7/12 at the Telheira target and 1.56% WO3 over 11.40 metres in Hole CO 13/12 starting at a depth of 52.70 metres at the Lapa Grande target.
On August 20, 2013, the Company was granted an Experimental Mining Licence for the project by the Government of Portugal.
Blackheath commenced its Phase 2 drill program at the project in September 2013. Phase 2 drilling is designed to expand the known zones of tungsten mineralization on the property and will include between 1,500 metres and 2,000 metres of drilling.
Blackheath holds the property under an option from Avrupa Minerals Ltd. to earn up to an 85% interest in a joint venture in the project, after incurring minimum exploration expenditures of EUR1 million in two stages to earn a 70% interest followed by completion of a prefeasibility study to earn the additional 15% interest.
Borralha and Bejanca Tungsten Projects
Borralha and Bejanca produced from the early 1900’s until 1985 when they closed due to continued decline in tungsten price.
The Borralha concession is located 60 km northeast of Porto and covers 127.5 squared-kilometres. The mine was the second largest tungsten mine in Portugal, after Panasqueira. The Bejanca concession is located 55 km southeast of Porto and covers 89 squared-kilometres. The mine produced both tungsten and tin concentrates.
The Company completed a preliminary trenching program at Borralha in September 2013. The program confirmed significant amounts of tungsten at surface in the Santa Helena Breccia, both in areas that were previously mined and also in new discovery zones. Highlights include 20 metres with a grade of 0.33 % WO3 (tungsten trioxide), including 5 metres of 1.09% WO3.
In November 2013, Blackheath completed preliminary exploration work at the Bejanca project. There are at least seven known historic mine workings and showings surrounding the main historic Bejanca mine within the project area. The initial program focused on preliminary mapping and sampling of these surrounding historic mines and workings. Assays of selected grab samples from these areas included the following:
- 2.12% WO3 at Vale da Fonte
- 1.68% WO3 at Mina de Masgalos
- 1.00% WO3 at Mina da Bodiosa
- 0.85% WO3 at Mina de Vale Gouro
Vale das Gatas Tungsten Project
In November 2013, Blackheath entered into a definitive agreement to acquire a 100% interest in the Vale das Gatas Tungsten Project. The Vale das Gatas mine was the second most prolific past producer of tungsten in Portugal, after Borralha, also owned by Blackheath. The Vale das Gatas mine closed in 1986 as a result of a significant decline in tungsten price. At its peak, the mine employed over 1,000 workers and produced up to 635 tonnes of tungsten concentrates annually. Ore was mined primarily from quartz veins containing the tungsten mineral wolframite together with lesser amounts of the tin mineral cassiterite. The average recovered grade of the mine was 0.35% WO3 (tungsten trioxide) per tonne. The Vale das Gatas mine is held in the Vila Verde exploration concession which covers an area of 62 square kilometres located about 100 kilometres east of Porto in northern Portugal.
Exploration is underway, commencing with data compilation, mapping and sampling on the property.
Blackheath Resources Inc. has a strong board and management team with experience in Tungsten and mining operations in Portugal through their past involvement with Primary Metals and the Panasqueira Tungsten Mine.
Blackheath Resources plans to increase shareholder value, by furthering project acquisitions, and successful development.
James Robertson, B.SC., P.Eng. – President, CEO, and Director
Mr. Robertson holds a B.Sc. in Metallurgy from the University of Nottingham and is a Professional Engineer in the Province of British Columbia. He has been actively involved in the mining industry and public resource companies for over 40 years and founded several companies, two of which graduated to full listings on the London Stock Exchange. Mr. Robertson is the principal and owner of Midas Management Inc., a private management company that provides services to junior resource companies seeking public listing and financing and to established companies in maintaining their corporate obligations. He was a founding director and Vancouver manager of Primary Metals Inc., a TSX Venture Exchange-listed company owning the operating Panasqueira tungsten mine in Portugal before its sale in 2007 to a subsidiary of the major Japanese conglomerate, Sojitz Inc.
Kerry Spong – Secretary, CFO, and Director
Mr. Spong is a self-employed accountant with over 20 years’ experience in accounting practice for private and public resource companies. He was a director and CFO for Primary Metals Inc., a TSX Venture Exchange-listed company owning a Portuguese tungsten producer, from October 2004 to October 2007 and is currently CFO for other junior public companies.
Jonathan Carter – Director
Mr. Carter is a businessman with over 35 years of experience in marketing and metal sales with particular experience in tungsten. He was previously employed by Minorco plc and Waller Metals Inc. as Sales Manager with particular reference to the sale and trading of tungsten concentrates and products. He was President and a director of Primary Metals Inc., a TSX Venture-listed company owning the operating Panasqueira tungsten mine in Portugal before its sale in 2007 to a subsidiary of the major Japanese conglomerate, Sojitz Inc.
J. Merfyn Roberts, B.SC., M.SC., CA – Director
Mr. Roberts has over 30 years of experience in fund and portfolio management. Until recently, he was a Senior Portfolio Manager with CQS Management of London, United Kingdom. He is a member of the Institute of Chartered Accountants of England and Wales and holds a Bachelor’s degree in Geology from the University of Liverpool and a Master’s degree in Geochemistry from the University of Oxford. Mr. Roberts currently serves as a director of Toronto Stock Exchange-listed companies Agnico-Eagle Mines Ltd., and Eastern Platinum Limited, and of other TSX Venture Exchange-listed companies.
Marshall Farris – Director
Mr. Farris has been actively involved in assisting public and private companies with corporate operations, capital development, corporate communications and regulatory compliance activities for over 20 years. Mr. Farris is a co-founder and principal of Ascenta Finance Corp. and has completed the Investment Funds Institute of Canada’s Exempt Market Products Course. He is currently a director of other TSX Venture Exchange-listed resource companies.
Alexander Langer – VP of Corporate Development
Mr. Langer has over nine years of experience in corporate development and capital markets in the resource sector. Mr. Langer started his career as an Investment Advisor with Canaccord Wealth Management. Most recently, Mr. Langer was Vice President Capital Markets for a TSX listed exploration company and has worked with numerous publically traded companies in various senior management positions including: Corporate Development, Investor Relations, Corporate Communications and Marketing. To date, Mr. Langer has helped raise over $200 million for junior and mid-sized resource companies through various means of financing including: equity, debt, royalty, off-take, and bond agreements.
George Cavey, B.Sc., P.Geo. – Advisory Committee
Mr. Cavey has over 35 years of experience in geological consulting for resource companies and, as the principal of OreQuest Consultants, was responsible for technical reports on Portugal’s Panasqueira tungsten mine. He is a past President of the Canadian Council of Professional Geoscientists and has been a consultant to the BC Securities Commission and the TSX Venture Exchange.
Jonathan Henry – Advisory Committee
Mr. Henry has over 18 years of experience in the international mining industry including the responsibility for execution of exploration, development and M & A activities. He currently serves as President and CEO of Gabriel Resources Ltd. and is a former CEO of London-listed Avocet Mining PLC with responsibilities including the managment of the spin-off of all tungsten assets into Primary Metals Inc.
Stuart Omsen – Investor Relations, Mammoth Market Advisory Corp.