Tungsten exploration company, Blackheath Resources (TSXV:BHR) has been granted a an Experimental Mining Licence (EML) by the Government of Portugal for the Covas tungsten project located in northern Portugal. According to the company’s press release, the EML is valid for a period of three years, however, it may be extended by a further two years. As per the terms of the new licence, which replaces the previous license, Blackheath is able to carry out mining programs and metallurgical testing at the Covas project.
Covas is located in northern Portugal roughly 100 kilometers from the city of Porto. It is a past producing tungsten mine that was operated by Union Carbide with historic resources estimated at 922,900 tonnes of 0.78 percent W03. The project is being optioned to Blackheath from Avrupa Minerals (TSXV:AVU), whereby the company has an option to earn up to 85 percent interest in a joint venture after incurring a minimum of $1 million in exploration spending.
Jim Robertson, President and CEO of Blackheath told investors in a statement that “We are delighted that the Experimental Mining Licence has been granted at Covas and we will now be able to proceed with the next phase of our work programme.”
Being granted the mining license is a step in the right direction for Blackheath. The licence has been granted to cover an area of roughly 1,948 hectares and includes the exploitation of gold, tin and tungsten. Granting of the licence, according to the company’s news release, is in line with the established Portugese mining law and may be followed up , if warranted, by the awarding of a full licence for full-scale commercial exploitation of the minerals found at Covas.
Thibaut Lepouttre, newsletter writer and editor of the Caesars Report, told Tungsten Investing News in an email that ”Issuing this license shows investors Portugal is a mining-friendly country and is supporting companies who would like to re-open past mining districts. The government realizes this will attract foreign investment and create much needed jobs in the country. This license will allow Blackheath to start processing ore although the company’s first priority now is to bring the current historical estimate which has an in situ value of over $300M and is one of Europe’s highest grade deposits up to NI43-101 standards”
According to Robertson, the company plans to complete trenching and other surface work in preparation for the next round of diamond drilling at Covas, as well as its contiguous tungsten permit at Arga, in September.
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any company mentioned in this article.
Edtorial Disclosure: Blackheath Resoruces is an advertising client of the Investing News Network. This article is not paid-for content.