Blackheath Resources Inc. (TSXV: BHR) 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 €980,000 over five years, and to pay Mineralia €25,000 upon execution of a definitive 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. 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.