NEW YORK Blackheath Resources Inc. has agreed to acquire
two tungsten mines in northern Portugal.
The Borralha Mine was Portugals second-largest tungsten
mine until its closure due to low tungsten prices in 1985. The
Bejanca Mine was also operational until 1985, producing
tungsten concentrates that were smelted on site into
ferrotungsten as well as tin concentrates, according to a
Tungsten is a critical metal, a strategic metal on most
Western countries lists, and we think as things gradually
improve in the future, tungsten will do well, Blackheath
president and chief executive officer James Robertson told
Under the agreement with Portuguese government entity
Minerália Minas, Geotecnia e Construções
Lda., Vancouver, British Columbia-based Blackheath has
committed to spending a minimum of 980,000 ($1.28
million) on exploration at Borralha and 650,000
($850,941) at Bejanca over five years, according to the
The company will also pay Mineralia 25,000 ($32,729) upon
execution of the agreement, 100,000 ($130,914) upon the
grant of a preliminary exploration license, and 1 million
($1.31 million) upon the commencement of production and the
granting of a final exploitation license.
We expect to commence a preliminary drilling program on
both projects at an early date following data compilation and
review, the company said.
While Blackheath is bullish on the long-term fundamentals of
the market, AMM sister publication Metal
Bulletin's ammonium paratungstate (APT) prices have
fallen recently to between $280 and $310 per metric ton unit
from $295 and $320 per mtu.
Blackheath also owns the Covas tungsten project in Portugal,
and members of Blackheath management have previous experience
in tungsten mining in the country through Primary Metals Inc.,
operator of the Panasqueira tungsten mine from 2003 to 2007,
according to the statement.
Primary Metals was taken over by Japans Sojitz Corp. in
2007, according to Metal Bulletin.