Blackheath Announces Letter of Intent for Borralha Tungsten Project
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 24, 2012) - Blackheath Resources Inc. (TSX VENTURE:BHR)(FRANKFURT:04B) is pleased to announce that the Company has entered into a Letter of Intent (the "Agreement") for an option to acquire up to a 100% interest in the past-producing Borralha Tungsten project. Borralha was Portugal's second largest tungsten mine (after Panasqueira) until its closure in 1985 as a result of a decline in tungsten price. The concession covers an area of 127.5 square kilometres and is located about 35 kilometres northeast of Braga in northern Portugal. No exploration work or drilling has been undertaken since 1985 and Blackheath will re-assess Borralha and the surrounding area for its mineral potential.
The Borralha mine operated from 1903 until 1985 when tungsten prices resulted in closure. Available historic records show production of tungsten in wolframite concentrates between 1907 and 1939 with some production of separate tin concentrates as a by-product. In the 1960's and 1970's, the mine produced high-quality wolframite concentrates and also lesser amounts of additional scheelite (tungsten) concentrates. Ore was mined primarily from vertical quartz veins, supplemented by limited open pit excavations in the later years. Work by Blackheath will focus on exploration of two large, partially-developed tungsten-bearing breccia zones and also on relatively untested sub-horizontal tungsten and tin bearing veins.
Blackheath's President & CEO, James Robertson, said: "We are delighted to add the historic Borralha mine to our Portuguese tungsten portfolio as we continue to build shareholder value. Terms of acquisition are very attractive and will enable us to focus resources on exploration and development of this new asset. We expect to commence a preliminary drilling program following data compilation and review."
The Borralha property is held by Mineralia - Minas, Geotecnia e Construcoes, Lda. ("Mineralia") through an exploration concession (the "Concession") granted by the Government of Portugal. The Concession is granted for an initial period of two years renewable for a further three years in one year increments, after which it may be converted into a preliminary exploitation licence and a final exploitation licence successively. Under the Agreement, Blackheath will undertake to fulfill the terms of the Concession, including staged minimum exploration expenditures totalling EUR980,000 over five years, and to pay Mineralia EUR25,000 upon execution of a definitive agreement, a further EUR100,000 upon the grant of a preliminary exploitation licence and a further EUR1 million upon mine production and the grant of a final exploitation licence. The transaction is subject to the approval of the TSX Venture Exchange.
The Company has received the resignation of Brett Matich from Blackheath's Advisory Committee. After careful consideration, Mr. Matich considers that as a result of the recent expansion of his other business commitments and activities, he is unable to devote sufficient time to Blackheath's affairs and consequently has stepped down from the committee.
Blackheath Resources Inc. is listed on the TSX Venture Exchange, and is focused on tungsten exploration and development in Portugal. The Company also holds the Covas tungsten project, where exploration and drilling is currently underway, and has recently announced a Letter of Intent for 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. 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., CEO, President & Director
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Blackheath Resources Inc.
James Robertson, P. Eng.
CEO, President & Director
604 669 8988
604 669 2744 (FAX)