Blackheath Earns 70% Interest in Covas Tungsten Project and Commences Exploration Programme
May 12, 2014 (Source: Marketwired) — Blackheath Resources Inc. (TSX VENTURE: BHR) (FRANKFURT: 04B) (“Blackheath” of “the Company) is pleased to announce it has earned a 70% interest in the Covas tungsten project in northern Portugal, following expenditures of EUR1,000,000, and has commenced the next phase of exploration at Covas.
The Covas tungsten project covers an area of 19.96 square kilometres. Tungsten mineralization generally occurs in an area known as the skarn ring. Approximately 60% of the skarn ring is untested and a geophysical IP programme has commenced to test these areas as well as a large tungsten porphyry prospect in the center of the skarn ring. The program is designed to assist in determining new drill targets as well as step-out targets adjacent to known high-grade historic resources. The data collected will also potentially show skarn mineralization is volumetrically much larger than has been mapped at surface.
“We are pleased to have now earned-in a 70% interest into the past-producing Covas tungsten project,” said James Robertson, President & CEO of Blackheath Resources. “With the aid of the IP survey, Blackheath’s technical team has started to develop the strategy for our Phase 3 drilling campaign at Covas, which is scheduled to start next month.”
Covas is a past-producing open pit and shallow underground tungsten mine and remaining historic resources on the property have been estimated at 922,900 tonnes of 0.78% WO3 (tungsten trioxide) by Union Carbide in 1980, based on work including 329 drill holes on the property. Mineralization is open to expansion. The price of tungsten has increased significantly in recent years and is currently approximately $36 per kilogram of contained tungsten trioxide. The Covas property is located about 100 kilometres north of Porto, Portugal’s second largest city. (These resources are historic in nature, prepared by Union Carbide Corp. in 1980 and are considered relevant. However, a qualified person has not done sufficient work to classify the historical estimates as current mineral resources and the Company is not considering the historical estimates as current mineral resources.)
Amended Mining Option Agreement: Covas Tungsten Project
Blackheath and Avrupa Minerals Ltd., have entered into an Amended Mining Option Agreement for the Covas Tungsten project. Having already earned a 70% interest, under the terms of the Amended Agreement, Blackheath can now acquire an additional 5% interest in Covas by incurring an additional EUR320,000 in expenditures no later than March 20, 2015. Further, Blackheath can earn an additional 5% by incurring EUR498,000 in expenditures no later than March 20, 2016 and finally a further 5% by incurring EUR833,000 in expenditures no later than March 20, 2017 for a total interest of 85% in the Covas Tungsten project at which point Blackheath and Avrupa will respectively hold an 85% and a 15% working interest in a joint venture.
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Blackheath has notified joint venture partner Avrupa Minerals ltd. that it has declined to proceed with further funding of exploration work at the Arga Project and has therefore dropped the project.
Avrupa Minerals Ltd. is a growth-oriented junior exploration and development company focused on discovery, using a prospect generator model, of valuable mineral deposits in politically stable and prospective regions of Europe, including Portugal, Kosovo, and Germany.
Blackheath Resources Inc. is listed on the TSX Venture Exchange, and is focused on tungsten exploration and development in Portugal. The Company holds the past-producing Covas, Borralha, Vale das Gatas and Adoria tungsten projects and also the Bejanca tungsten/tin project. Management of Blackheath has previous experience in tungsten mining operations in Portugal through Primary Metals Inc., the operator of the Panasqueira Tungsten Mine from 2003 to 2007.
On behalf of the Board,
James Robertson, P. Eng., CEO, President & Director
This news release was prepared by Company management, who take full responsibility for its content. Barry J. Price, M.Sc., P.Geo. is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. He has reviewed the technical disclosure in this release.
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.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>