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Blackheath Resources has been exploring at the Covas tungsten project in Northern Portugal since 2013. While historical data showed the area was rich with tungsten, the company’s maiden resource estimate, released Tuesday, reveals a significant increase compared to previous studies.
Flag of Portugal. Source: Wikimedia Commons.
Blackheath Resources (TSXV:BHR) has been exploring at the Covas tungsten project in Northern Portugal since 2013, and while historical data showed the area was rich with tungsten, the company’s maiden resource estimate, released Tuesday, reveals a significant increase compared to previous studies.
Data from 326 historic drill holes from previous operators, along with information from 46 diamond drill holes completed from 2012 onward, shows an estimated indicated mineral resource of 449,800 metric ton units WO3. That’s based on 1,081,000 tonnes at an average grade of 0.42 percent WO3, a significant increase from the historical resource estimate completed by Union Carbide in 1980.
The inferred resource sits at 767,100 metric ton units WO3 based on 2,211,000 tonnes at an average grade of 0.35 percent WO3.
Covas, which is located approximately 100 kilometers north of Porto, consists of seven separate deposits that were previously thought to contain an estimated 922,900 tonnes of 0.78 percent WO3 when the last exploration was done over 30 years ago. While the company is happy that previous exploration was well documented, exceeding those previous estimates was a pleasant surprise.
“We are delighted to have exceeded our initial expectations in upgrading the non-compliant historical resource. The significant increase in size is a testament to our technical teams and the strength of the Covas Tungsten Deposit. This maiden resource is a great milestone for the Company and our shareholders and we look forward to moving the Covas Tungsten Project towards our ultimate goal of production,” stated Blackheath CEO James Robertson.
It’s also worth noting that over 80 percent of the resource is located within 60 meters of the surface. These findings make the Covas project one of the higher-grade reported tungsten deposits. Blackheath currently holds the property under an option from Avrupa Minerals (TSXV:AVU), and to date it has earned a 75-percent interest in Covas.
The mineralization at the site remains open in multiple directions and includes high-grade potential areas that will be tested in the company’s next drilling program, which is planned for later this year.
Re-establishing tungsten mining in Portugal
Covas isn’t the only property Blackheath has reintroduced to the tungsten mining space. In fact, the five properties it now holds in Portugal were past producers that closed mostly in the 1980s due to a decline in tungsten prices. One example is the Borralha project, located about 60 kilometers northeast of Porto — it was the second-largest tungsten mine in Portugal until it closed in 1985. Blackheath now holds a 100-percent interest in the mine and began a drill program there last April. A preliminary trenching program was completed in September 2014, and it confirmed significant amounts of tungsten near surface.
Then there is the Bejanca project in North-Central Portugal, which operated from the early 1900s until 1985 and also contains tin. Robertson told Resource Investing News at the VRIC conference in January that Blackheath plans to confirm the historic resource estimates at the property and expects early production. The company completed preliminary exploration work there in November 2013, focusing on mapping and taking samples from the area.
At end of day Tuesday, Blackheath’s share price was up 21.43 percent at a price of $0.255.
Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.