VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 19, 2012) - Blackheath Resources Inc. (TSX VENTURE:BHR)(FRANKFURT:04B) is pleased to announce that the Company has entered into a Letter of Intent (the "Agreement") for an option to acquire up to a 100% interest in the past-producing Bejanca tungsten/tin project, located about 12 kilometres northwest of Viseu in northern Portugal. The concession encompasses several historic mines that produced tin and tungsten concentrates until their closure in 1985. No exploration work or drilling has been undertaken since that time and Blackheath will re-assess Bejanca for its mineral potential.
The mines at Bejanca operated from the early 1900s until 1985 when tungsten prices resulted in their closure. Available historic records show production of tungsten concentrates between 1911 and 1939 as well as production of both wolframite (tungsten) concentrates and cassiterite (tin) concentrates between 1963 and 1985. Mining was from several shallow open pits and shallow underground workings. The tungsten and tin mineralisation occurs in stockworks in greisens and also in hydrothermal quartz veins.
Blackheath's President & CEO, James Robertson, said: "This is an exciting new project for Blackheath and further demonstrates our strategy of acquiring attractive, past-producing projects in Portugal at accretive terms to build significant shareholder value. Our technical team has already started assessing the sizeable project area in order to plan our exploration strategy."
The Bejanca property is held by Mineralia - Minas, Geotecnia e Construcoes, Lda. ("Mineralia") through an exploration concession (the "Concession") granted by the Government of Portugal. The project area covers 89 square kilometres and is granted for an initial period of two years renewable for a further three years in one year increments, after which it may be converted into a preliminary exploitation licence and a final exploitation licence successively. Under the Agreement, Blackheath will undertake to fulfill the terms of the Concession, including minimum exploration expenditures of EUR650,000 over five years, and to pay Mineralia EUR25,000 upon execution of a definitive agreement, a further EUR100,000 upon the grant of a preliminary exploitation licence and a further EUR1 million upon mine production and the grant of a final exploitation licence. The transaction is subject to the approval of the TSX Venture Exchange.
Blackheath Resources Inc. is listed on the TSX Venture Exchange, and is focused on tungsten exploration and development in Portugal. The Company also holds the Covas tungsten project where exploration and drilling is currently underway. Management of Blackheath has previous experience in tungsten mining operations in Portugal through Primary Metals Inc., the operator of the Panasqueira Tungsten Mine from 2003 to 2007. Further information about the Company's activities may be found at www.blackheathresources.com and under the company's profile at www.sedar.com.
On behalf of the Board,
James Robertson, P. Eng., CEO, President & Director
This news release was prepared by Company management, who take full responsibility for its content. James Robertson, P.Eng. is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. He has reviewed the technical disclosure in this release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.