Blackheath Resources (BHR.V) has completed an underground sampling program at its Vale das Gatas project, which used to be one of Portugal’s largest historical producers of tungsten. The samples taken at the Brasileira-vein were okay with good grades but very short sample widths (between 15 and 50 centimeters), but we are really excited about the assay results from the Santa Rita vein.
At the Santa Rita stockwork zone, Blackheath sampled 5 meters of 1.53% WO3 and 17 g/t silver as well as 6 meters of 2.56% WO3 and almost 2 ounces of silver per tonne of rock. The average grade over these 11 meters was 2.09% WO3 and 1.3 ounces of silver, not bad at all (and yes, that’s an understatement). Blackheath now plans to drill five holes on the Vale das Gatas property to determine whether or not the mineralization might be amenable for bulk mining (which would be cheaper on a per tonne basis than vein mining).
Additionally, Blackheath has discovered a historical reserve estimate of the A-vein at VdG, where the government of Portugal estimated a total reserve of 120,000 tonnes at an average grade of in excess of 0.55% WO3, 0.18% tin and almost 100 g/t silver. You shouldn’t focus on the tonnage (as that will undoubtedly increase – keep in mind it was quite common to have a reserve for just 2 years of production) but on the average grade as these numbers point in the direction of a rock value of $195/t (using a tungsten price of $220/mtu).
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Disclosure: The author holds a long position in Blackheath Resources. Blackheath is a sponsor of the website. Please see our disclaimer for current positions.
