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Black Fire Minerals in pre open pending announcement on maiden Desert Scheelite JORC resource

Published: 03:07 05 Jul 2012 BST

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Black Fire Minerals (ASX: BFE) has been granted a trading halt pending the announcement of a maiden JORC resource estimate for the Desert Scheelite Prospect at its Pilot Mountain Tungsten Project, Nevada.

The company had in April completed a 15 hole diamond drilling program that confirmed the presence of tungsten mineralisation over 650m of strike and 330m vertically that remained open in all directions.

It also received  high grade results from two of the step out drill holes of:

- 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.

Of note was hole 15, which was located 150 metres outside the historic Union Carbide Corporation
Feasibility Study area, providing exploration upside for the Pilot Mountain Project.

The JORC resource will pave the way for a Scoping Study that Black Fire plans to start in the current quarter.

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.

The return of higher tungsten prices about seven times higher than when Union Carbide was working on Pilot Mountain makes it an attractive time for Black Fire to be progressing work there.

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.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Monday 9th July.

 

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