Monday, 20 February 2012

Black Fire Minerals improves potential of Pilot Mountain in Nevada ahead of maiden tungsten Resource

Black Fire Minerals (ASX: BFE) has intersected substantial tungsten mineralisation at its Pilot Mountain Tungsten-Copper Project in Nevada with drill assays continuing to confirm historic drilling results.

Highlight intersections include:

-    17.6 metres at 0.28% tungsten from surface;
-    14.6 metres at 0.3% tungsten, 0.17% copper and 6 grams per tonne (g/t) silver from 1.1 metres; and
-    21.8 metres at 0.43% tungsten from 66.2 metres.

Chairman Anthony Baillieu said Black Fire is pleased with the progress of the Desert Scheelite resource drilling program.

“With the results of the first five holes now available and meeting our expectations, the company remains on track with its aim of delivering a maiden JORC Resource for the Desert Scheelite Prospect by mid-year,” he said.

The recent results were produced from a further three diamond drill holes completed as part of a 4,000 metre, 18-hole drilling program.

A total of 11 holes have been completed to date at Desert Scheelite with further assays due later this month.

Geological logging of these completed holes has confirmed substantial tungsten mineralised skarn development.

Black Fire Minerals is aiming to convert historic drill results from the Desert Scheelite prospect to a maiden JORC Resource by the end of June.
Managing director Simon Rigby told Proactive Investors today Black Fire Minerals is able to advance the project very rapidly because the company has the benefit of historic data.
Following the delivery of a JORC Resource at Desert Scheelite, Black Fire Minerals plans to begin exploration on the two other advanced prospects, Gunmetal and Garnet, and commence a Scoping Study for Pilot Mountain.

Exploration Upside

Providing exploration upside at Pilot Mountain is the 11 other prospect areas identified within the 13 square kilometre area, which is strategically located less than 20 kilometres from an intrastate highway and grid power.

The Desert Scheelite Prospect is one of three advanced prospects which were historically extensively drilled and subjected to mining feasibility studies by Union Carbide during the early 1980s.

Union Carbide “mothballed” the project in the mid-1980s in response to a significant fall in tungsten prices at that time and there has been no significant exploration undertaken since.

Black Fire Minerals has outlined an exploration target for Desert Scheelite of 4-5 million tonnes at 0.3-0.34% tungsten, while the overall exploration target across the three advanced prospects is 7-9 million tonnes at 0.3-0.37% tungsten.
Rigby said in terms of grade, Pilot Mountain is well above the grade curve in comparison to other tungsten mines and projects around the world.
"To add to that we have the benefit of location. We’re only 20 kilometres off a major intrastate highway that links Reno to Las Vegas, 20 kilometres from power and we’re in a good regulatory environment like Nevada," he said.
"The U.S. is a net importer of tungsten concentrates anyway so conceivably there’s a domestic market for our product.
"The fundamentals of its location and the infrastructure and everything else makes it quite an attractive target."

The company is aiming to deliver a maiden JORC Resource at a time of high tungsten demand and corresponding high prices.

Business Development

Black Fire Minerals is currently focusing on building value in its current project portfolio, which also includes the Kangeshi Copper-Silver Project in the Democratic Republic of the Congo, the Longonjo Rare Earth Project in Angola and Mystique Gold Project in Western Australia.

The company is also evaluating a number of potentially synergetic projects. Importantly, Black Fire Minerals is financially well placed to do this with A$4.5 million in cash on hand at the end of the December 2011 quarter.

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