Last year, Blackheath Resources (BHR.V) completed an additional drill hole at the Santa Helena breccia, part of the Borralha tungsten project. This hole was drilled approximately 100 meters south of hole 8A where assay results revealed an interval of 118 meters containing 0.29% WO3.
Hole BO17 entered mineralization at a depth of just 5 meters and intersected a wide interval of 157 meters at 0.17% WO3, including 116 meters at 0.20% and 92 meters at 0.25%. Although the 0.17% is relatively low-grade (but could be processed anyway), it’s great to see a 92 meter thick zone starts just 39 meters downhole. With a grade of 0.25% WO3, the rock value is approximately $75/t and that’s perfectly viable for an open pit operation.
If you’d exclude these 92 meters of 0.25% WO3 from the longer interval, you end up with an additional 60 meters at 0.05% WO3 with a rock value of approximately $15-17/t which could be stockpiled to be processed at the end of a potential mine life. Of course, more work is needed at Borralha, but this 100 meter step out hole is a step in the right direction to prove up the total size of the breccia (which measures 575 by 150 by 200 for a total anticipated tonnage of 40-50 million tonnes. At an average grade of 0.22% WO3 over half the average depth, we see the potential for up to 10 million mtu of Tungsten in a best case scenario.
Despite the revival of the tungsten market, Blackheath Resources’ treasury is running on fumes again, and we hope the company will be able to hold on to its tenements. If the company would have to make a (tough) choice, we would prefer it to relinquish the Covas property and keep Borralha.
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The author has a long position in Blackheath Resources. Please read the disclaimer
