Black Fire Minerals secures $4m capital raising to advance JORC Resource delineation

Black Fire Minerals (ASX: BFE) has received firm commitments to raise $4 million before costs to advance drilling programs at the Kangeshi Copper Silver Project and Pilot Mountain Tungsten Copper Project.

The money will be raised through the issue of 40 million shares at $0.10 each to sophisticated and institutional investors.

Importantly, the capital raising has been carried out at no discount to Black Fire’s 5 day volume weighted average price prior to the trading halt of $0.098, showing confidence in the company’s projects.
Exploration programs
Drilling at Kangeshi and Pilot Mountain is set to begin shortly, with Black Fire targeting Mineral Resources for both projects by June 2012.

Kangeshi, in the Democratic Republic of the Congo, is the most advanced of Black Fire’s five prospects defined to date, and looks to have strong potential to deliver a significant bulk tonnage, moderate grade copper-silver deposit.

Holes drilled by Brazilian major Vale in 2008 intersected significant copper-silver mineralisation in a shallowly dipping sedimentary horizon over 5 kilometres of strike.

Intersections from Vale’s drill holes in the Black Fire target area included 11 metres at 1.1% copper and 23.6 grams per tonne (g/t) silver, 10.5 metres at 1.2% copper and 22.6g/t silver, 4.7 metres at 1.42% copper and 37.2g/t silver.

At Pilot Mountain, in Nevada, U.S., more than 150 drill holes were completed by Union Carbide in previous decades.

Best results from that drilling include 12.6 metres at 0.59% tungsten, 8.93g/t silver and 0.48% copper.

These deposits were never exploited due to a significant collapse in tungsten prices in the mid-1980’s, and no significant modern exploration has been undertaken on the project since then.

Black Fire acquired full rights to Pilot Mountain in September.

Black Fire is also planning a drilling program for the Mystique Gold Project, Western Australia, in January 2012, and is continuing reconnaissance work on a number of historical prospects at the Longonjo Project in Central Angola.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/22711/black-fire-minerals-secures-4m-capital-raising-to-advance-jorc-resource-delineation-22711.html