|November 27, 2013|
Blackheath Acquires Option for Vale das Gatas Tungsten Project
|Blackheath Resources Inc. (TSXV: BHR) ("Blackheath" or the "Company") is pleased to announce that the Company has entered into a definitive agreement (the "Agreement") for an option to acquire a 100% interest in the Vale das Gatas Tungsten Project. The acquisition is consistent with the Company's goal of holding high-quality, past-producing tungsten mines with the potential for development of significant additional tungsten resources in northern Portugal. Exploration is underway, commencing with data compilation, mapping and sampling on the property.|
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.
At least twenty-four wolframite-bearing sub-vertical quartz veins have been identified over some 550 metres. No drilling was ever undertaken on the property and reports from miners who worked at Vale das Gatas until its closure have reported that these veins were to be the next source of ore for the mine. Initial work by Blackheath will focus on mapping and sampling of these veins as well as general exploration in the surrounding area. To date, Blackheath has identified approximately 300 old mine workings on the property.
Blackheath's President & CEO, James Robertson, said: "We are delighted to add this historic tungsten producer to our portfolio under very favourable terms. Initial work will commence immediately with a view to a diamond drill program early next year."
Blackheath holds the option for Vila Verde from Mineralia -- Minas, Geotecnia e Construcoes, Lda. ("Mineralia") - through an exploration concession (the "Concession") granted by the Government of Portugal. The Concession is granted for a period of up to five years, after which it may be converted into a preliminary exploitation licences and a final exploitation licence successively. Under the Agreement, Blackheath will undertake to fulfill the terms of the Concession, include a minimum exploration expenditure of €220,000 during the first two years. Blackheath will also pay Mineralia €25,000 within six months of execution of the Agreement, a further €100,000 upon the grant of a preliminary exploitation licence and a further €1 million upon mine production and the grant of a final exploitation licence, at which time Blackheath will hold a 100% interest in the project.
Blackheath Resources Inc. is listed on the TSX Venture Exchange, and is focused on tungsten exploration and development in Portugal. The Company holds the Covas, Arga and Borralha tungsten projects and also the Bejanca tungsten/tin project. Exploration is currently underway at all four projects and drilling results are expected from Covas in the near future. 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.
Further information about the company's activities may be found at www.blackheathresources.com and under the company's profile at www.sedar.com
On behalf of the Board,
James Robertson, P. Eng., President & CEO
For further information contact Alexander Langer at 604 684-3800 or firstname.lastname@example.org
This news release was prepared by Company management, who take full responsibility for its content. James Robertson, P.Eng. 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.
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