Blackheath Resources (BHR.V) announced the completion of the Phase I drill program at the Covas Tungsten project in Northern Portugal. The company drilled in excess of 1,600 meters in 15 drill holes and is currently reviewing all the data before starting with a Phase II drill program in April of this year.
Highlights of this Phase I drill program are an intercept of almost 8 meters at 2.11% tungsten and in excess of 11 meters at 1.56% Tungsten. As the current price of APT-grade tungsten is in the region of $315/mtu (1mtu is 10 kilo’s, or a grade of 1%), the rock value of these intercepts is extremely high.
We like the fact that this $6M marketcapper is headed by Jim Robertson, well known in the Portuguese tungsten industry because he brought Primary Metals Inc. public at C$0.10, re-opened an old tungsten mine in Portugal and sold the company three years later for C$3.65/share. We hope Robertson can repeat this trick with Blackheath Resources.
Blackheath has to spend 1M EUR to gain a 70% interest in the project. The company spent approximately 550k EUR in the first exploration phase and we expect them to obtain the 70% ownership later this year. Should Blackheath complete a pre-feasibility study on the project, their ownership will increase to 85%.
Disclosure: The author holds a long position in Blackheath Resources Inc. Please see our disclaimer for current positions.
