Blackheath Resources (BHR.V) has announced an update on its exploration efforts at the high-grade Covas tungsten project in Portugal. The company has started a Phase II drill program which will drill 1500-2000 meters to expand the currently known high-grade tungsten zones. Blackheath will initially focus on the Lapa Grande zone which returned intercepts of in excess of 2% WO3 in the first exploration phase (for a rock value of between $865/t and $1260/t). There are other tungsten projects in Europe, but the Covas project has by far the highest grades as the historical resource estimate has an average grade of 0.78% WO3.
Blackheath can earn 70% of the Covas project from Avrupa Minerals (AVU.V) by spending 1M EUR in exploration, and we think this threshold will be reached after this drill program. Thereafter, Blackheath can earn an additional 15% by completing a pre-feasibility study.
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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.
