Black Fire Minerals (ASX: BFE) has received stellar results from the final two diamond step out holes at the Desert Scheelite prospect within the company's Pilot Mountain Project, with construction of a new geological and resource model to follow.
The latest assays include hole DSDD-15, which returned the best copper intersection ever recorded from the Pilot Mountain project, with 7.2 metres at 2.15% copper within a broader intercept.
Results from the final two holes include:
- 13.9 metres at 0.89% tungsten, 1.75% copper and 31 grams per tonne (g/t) silver from 198.7 metres, including 7.2 metres at 1.16% tungsten, 2.15% copper and 37g/t silver;
- 20.3 metres at 0.35% tungsten, 0.22% copper and 6g/t silver from 188.1 metres, including 1.8 metres at 1.24% tungsten, 0.2% copper and 8g/t silver.
Mineralisation remains open in all directions at Desert Scheelite.
Black Fire chairman Anthony Baillieu said the results of the final holes at Desert Scheelite supported the company's belief in the exploration upside potential of the Pilot Mountain Project.
"The board is extremely pleased with the results of the final holes from the Desert Scheelite drilling program and are particularly highly encouraged by the remarkable result of hole DSDD-15 which has successfully extended the Desert Scheelite deposit at least 150m to the east outside of the historic Union Carbide Feasibility Study area," Baillieu said.
With step out drilling now complete at Desert Scheelite, Black Fire is focused on delivering a maiden JORC Resource by the end of the June quarter. This will be followed by a Scoping Study, which is planned to begin in the September quarter of 2012.
Providing exploration upside at Pilot Mountain is the 11 other prospect areas identified within the 13 square kilometre area.
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.
A drop in world tungsten prices in the mid-1980s led to the project being mothballed.
With demand for tungsten pushing prices 700% higher than in the 1980s, Baillieu said it was a good time to be progressing work at Pilot Mountain.
"The Board continues to be highly encouraged by developments in the tungsten market, including recent investments by Berkshire Hathaway, and intends to rapidly progress the Pilot Mountain Project towards development," he said.
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.
Pilot Mountain also has location on its side, situated in Nevada just 20 kilometres from a major intrastate highway that links Reno to Las Vegas and 20 kilometres from power.
The United States is a net importer of tungsten concentrates, offering a potential domestic market, while the good regulatory environment in Nevada is also a plus.
Black Fire Minerals is focused 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.