TSX.V: BHR Frankfurt: 04B Forward Looking Statement This - - PowerPoint PPT Presentation

TSX.V: BHR Frankfurt: 04B

Forward Looking Statement

This presentation may contain, in addition to historical information, forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and forward-looking information within the meaning of the Ontario Securities Act. These forward-looking statements involve known and unknown risks that may cause actual results to be materially different from those implied herein including, without limitation, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources; the geology, grade and continuity of mineral deposits; the possibility that future exploration and development results will not be consistent with the Company’s expectations; accidents, equipment breakdowns, labour disputes or other unanticipated interruptions in exploration and development; the potential for unexpected expenses; commodity price or currency fluctuations; or failure to obtain adequate financing on a timely basis. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those presented in forward-looking statements. Accordingly, you are cautioned not to place undue reliance on the forward-looking statements made in this presentation and to make reference to the company’s prospectus and technical report for further information. The historical resource estimates reported in this presentation are not compliant with NI43-101. The resource estimates are reported as they exist in the historic records. The company has not done sufficient work to classify the historical resources as current mineral resources and therefore is not treating the historical resources as current resources. This presentation has been prepared by the Company, James Robertson, P.Eng., who is the Qualified Person responsible for the preparation of the scientific and technical information related to the Company’s operations that is included in this presentation.

Overview

1

• Blackheath Resources - a company acquiring the top past-

producing tungsten mines of Portugal, currently holds 4 of the most significant past producers

• Management – experienced in tungsten and Portugal through the
• wnership and sale of Primary Metals, which held the

Panasqueira tungsten mine in Portugal. Primary Metals started at $0.15 to a cash sale at $3.65 in 4.5 years.

• Tungsten – a strategic metal in demand, top of the critical supply

list in the EU. Current price US $185 per MTU unit (1 MTU = 10kg)

• Covas NI 43-101 Resource Report (highest grade open-pit

tungsten project in Europe)

• Borralha drill result: 118 metre intersection @ 0.29% WO3 (one of

the best tungsten drill results ever reported)

Overview - Projects

2

• Covas
• 449,800 MTUs WO3 indicated mineral resource based on

1,081,000 tonnes at an average grade of 0.42% WO3

• 767,100 MTUs WO3 inferred mineral resource based on

2,211,000 tonnes at an average grade of 0.35% WO3

• Borralha – 118 metres of 0.29% WO3, Portugal’s largest past

producer, significant open pit potential

• Bejanca
• 42% of test mining pits showed values greater than 400

ppm Sn (tin) and,

• Showed an average content of 792 ppm Sn, and
• Contained an average of 35% fine sand containing 1,551

ppm Sn (1.6kg/t

• Vale das Gatas – Underground sample of stockwork totalling 11

metres average 2.09% WO3

Tungsten and its Uses

Hard metals (carbides) 5% Steel alloys 20% Mill products (lighting etc) 17%

Source: Roskill 2013

Other 8%

Properties:

• Shiny, white metal
• Forms super hard alloy with carbon
• Extremely high melting point 3,410ºC
• As heavy as gold, density 19.25 g/cc

Uses:

• Cutting and grinding tools (tungsten

carbide)

• Steel alloys and super alloys
• Electrodes, lighting filaments
• Armaments and military uses

3

Roskill: 2013

World Mine Production - est.

• World production ~ 73,000 tonnes Tungsten (W)
• ~85% of the world’s tungsten is produced in China
• China dominates the market, now it imports Tungsten

Austria - 1,100 Bolivia - 1,100 Canada - 2,000 China - 62,000 Portugal - 820 Russia - 3,500 Other Countries - 3,000 World Total 73,000

Tonnes of Tungsten (W)

Source: USGS January 2013 4

Tungsten has been classified as either a critical or strategic mineral by the British Geological Survey, the European Commission, the United States Government and the Government of China

Blackheath Board of Directors

A team experienced in Tungsten and Portugal

JAMES ROBERTSON, B. Sc., P. Eng. | Chairman and Director

• Professional Engineer with over 40 years of experience in technical, design, management and financing services

for the mining industry and public resource companies – two achieved full listings on the London Stock Exchange

• Founding director and Vancouver manager of Primary Metals Inc., owning the Panasqueira Tungsten mine in

Portugal, until its sale to Sojitz Inc. at $3.65 per share

KERRY SPONG | Secretary, CFO and Director

• Over 20 years of experience in accounting practice for private and public resource companies
• CFO of junior resource companies including Primary Metals Inc. prior to its sale to Sojitz Inc.

ALEXANDER LANGER | President and CEO

• Over 10 years experience in Capital Markets; including 4 years at Canaccord Financial as an Investment Advisor
• Previously Vice President Capital Markets for a TSX listed exploration company and has worked with numerous

publically traded companies in various senior management positions.

JONATHAN CARTER | Director

• Over 35 years of experience in marketing and metal sales, specializing in Tungsten
• Founding director, then President of Primary Metals Inc. prior to its sale to Sojitz Inc.
• J. MERFYN ROBERTS, M. Sc., CA | Director
• Over 30 years of experience in investment fund and portfolio management
• Previously Senior Portfolio Manager with CQS Management of London, UK and a director of

mining companies including Agnico-Eagle Mines and Eastern Platinum Limited

5

Blackheath Advisory Committee

Strategic support - A wealth of experience available to Blackheath

JONATHAN HENRY| President and CEO, Gabriel Resources Ltd.

• Over 18 years of experience in the international mining industry including responsibility for

execution of exploration, development and M & A activities

• Former CEO of LSE-listed Avocet Mining PLC including management of international tungsten

assets and their spin-off into Primary Metals Inc.

GEORGE CAVEY, B.Sc., P. Geo.| President, OreQuest Consultants

• Over 35 years of experience in geological consulting for resource companies
• Former Vice President Exploration for Orko Silver (sold to Coeur Mining in 2013 for $380,000,000)
• Past President of the Canadian Council of Professional Geoscientists
• Consultant to the BCSC and the TSX Venture Exchange
• Consultant to and Director of Primary Metals Inc. and author of their NI 43-101 technical reports

6

History of Primary Metals Inc.

• Acquired Panasqueira Tungsten

mine in Portugal in 2003

• Listed June 2003, initial trading

price $0.15 per share

• Sold to Sojitz Inc. in October

2007 at $3.65 per share

• Mine produces ~100,000 MTUs

p.a. from ore containing ~0.14% WO3

• 2006 reserves 1.4 M tonnes @

0.23% WO3 (322,000 MTU)*

Share Price Primary Metals Inc. Panasqueira Tungsten mine

7 * Primary Metals 43-101 technical report dated July 25, 2006

Investing in Portugal

8

• Highly attractive geological setting
• Supportive legislative environment, approximately 6 months to

permit a mine

• Excellent infrastructure

–Paved road access –Ample water and power available –Numerous deep sea ports and rail lines –3 major mining operations in production

China and Portugal

• Very close business relationship. In 1999, Portugal returned Macau

to China

• China’s Three Gorges Corp owns 21% of Portugal's National

Energy Company

• “Golden Visa Program” that allows easy immigration for Chinese

nationals into Portugal

Blackheath’s Tungsten Projects

9

• Excellent infrastructure in

northern Portugal Covas

• Covas permit is 1,949 hectares,

with historic resources and a simple option

• Blackheath earns up to 85%

interest in Covas JV through work expenditures only (75% earned to date) Borralha, Bejanca, Vale das Gatas

• Blackheath earns 100% interest

in these past-producing projects through work expenditures, plus cash of €125,000 and payment

• n production of €1 million

Blackheath’s Tungsten Projects

10

Blackheath controls 4 of the top 7 largest past producing tungsten mines

Covas Tungsten Project

• Past underground and open pit production of 366,000 tonnes at

0.61% WO3 between 1951 and 1974

• Exploration and drilling by Union Carbide and others 1974 to 1980;

including diamond drilling with a total of 329 drill holes. To date BHR has conducted a further 52 drill holes

11

• Experimental Mining licence issued August 20, 2013, valid for 3

years and extendable for a further 2 years

• NI 43-101 Resource Report (Highest Grade Open-pit Tungsten

Project in Europe)

• Mineralization remains open in multiple directions including high-

grade potential areas that will be tested during the next drill campaign focussing on resource growth and grade increase

• Environmental assessment, internal scoping studies and

metallurgical testing underway

Mineral Resource Highlights

12

WO3 Cut-off (%) Classification Tonnes> Cut-off (tonnes) Grade WO3 (%) Contained Metal MTU WO3 0.1 Indicated 1,081,000 0.42 449,800 Inferred 2,211,000 0.35 767,100 0.2 Indicated 860,000 0.48 414,100 Inferred 1,767,000 0.39 694,200 0.25 Indicated 686,000 0.55 375,200 Inferred 1,281,000 0.46 584,900

• Substantial increase in MTUs over previous historical estimates
• Shallow depth. Over 80% of the resource is located within 60

metres of surface

• 19 drill holes capped to a lower average grade
• Higher grade resource using a 0.25% WO3 cut-off
• 375,200 MTUs WO3 indicated based on 686,000 tonnes at an

average grade of 0.55% WO3 and

• 584,900 MTUs WO3 inferred based on 1,281,000 tonnes at an

average grade of 0.46% WO3

Covas Drill Targets

13

Covas Mine Workings

Sampling at Cerdeirinha open pit

15

Borralha Tungsten Project

• Location: Northern Portugal
• 127.5 sq. km of mineral rights

(12,750 h); exploration permit valid to July 2017

• Excellent infrastructure includes

rail, power grid near/on property

• network of roads provides

access to all worksites

16

Borralha Production History

• In production from 1904-1985
• Largest past producing tungsten mine in Portugal
• The total known production of tungsten concentrates (wolframite

and scheelite) from 1904 until the closing of Borralha is estimated at about 18,500 tonnes

• Ore was mined primarily from vertical quartz veins, supplemented

by limited open pit excavations in the later years

• Extensive infrastructure in place including:

– Multiple paved access roads – Former hydro electric plant for the mine, still in operation – Ground work for future buildings and plant site – 2 large shafts access the vertical veins – Ample water supply

17

The Borralha Mine

20 18

Borralha Tungsten Project

• 118 metre intersection in BO 8A assaying 0.29% WO3 (57m

to 175m) and including 91 metre intersection assaying 0.31% WO3 (84m to 175m)

• One of the best tungsten drill results ever reported from

surface

• 5 of the 6 drill holes ended within the boundaries of the

breccia

• A higher grade zone located in the centre of the breccia is
• pen to the north and south and at depth to the east
• Early indications show that the mineralized breccia may be

at least 575 metres in length, over 150 metres in width and

• pen to depth of over 200m from surface

19

Santa Helena Breccia

20

Santa Helena Breccia: Results from Drill Program

21

Hole ID Intercept - Metres Intercept % WO3 From To Total BO 5 21 117 96 0.14 including 54 117 63 0.20 including 88 117 29 0.27 BO 6 36 112 76 0.09 including 69 89 20 0.14 and 97 112 15 0.06 BO 7 108 175 67 0.08 including 108 123 15 0.13 and 128 142 14 0.15 and 158 175 17 0.08 BO 8A 57 175 118 0.29 including 84 175 91 0.32 BO 9 85 93 8 0.27 and 188 199 11 0.10 BO 10 39 53 14 0.05 and 85 91 6 0.14 and 107 125 18 0.16 152 171 19 0.07

Santa Helena Breccia

22

• Bulk sampling, internal scoping studies, metallurgical testing

and preliminary environmental services studies underway

Bejanca Tungsten/Tin Project

• Location: Northern Portugal
• 70 sq. km of mineral rights (7,000 h);

exploration permit valid to July 2017

• Excellent infrastructure, power grid

near/on property - network of roads provides access to all worksites

• In production from 1917-1985

23

• Assays of selected grab samples at

Bejanca

• 2.12% WO3 at Vale da Fonte
• 1.68% WO3 at Mina de Masgalos
• 1.00% WO3 at Mina da Bodiosa
• 0.85% WO3 at Mina de Vale Gouro

(These must be considered to be preliminary selected samples, and as such, may not be representative of average values for each showing.)

Bejanca Tin/Tungsten Project

24

• 8 former mines located in the project area;

also a ferro-tungsten smelter

• Bejanca was the 3rd most prolific tungsten

producer in Portugal

• Exploration work underway, including

sampling, mapping and drill planning

Results from most resent 50 test pits

• Most of the values are in tin in the area

tested

• 42% of the pits showed values greater than

400 ppm Sn (tin), and

• Showed an average content of 792 ppm Sn,

and

• Contained an average of 35% fine sand

containing 1,551 ppm Sn (1.6kg/t)

• Sporadic tungsten values ranged between

10ppm and up to 1,463ppm WO3

Blackheath Share Structure

Issued shares 42,196,175 Employee Stock Options 3,630,000 Warrants @ $0.53 exp. Jun. 17, 2017 625,000 Warrants @ $0.53 exp. Aug. 24, 2017 276,250 Warrants @ $0.20 exp. Nov. 4, 2017 2,685,751 Warrants @ $0.20 exp. Nov. 24, 2017 2,822,822 Warrants @ $0.18 exp. Jun. 7, 2018 4,148,750 Warrants @ $0.18 exp. Jun. 29, 2018 3,210,000 Total Diluted 59,594,758

Directors and insiders control ~ 37.3% of issued shares Listed TSX Venture Exchange symbol: BHR Quoted Frankfurt Exchange symbol: 04B

25

Major shareholders ShanDong DongLin 15.1% James Robertson 8.3% Ernesto Echevarria 6.1% Shining Capital 5.7%

Blackheath Work Plan and Corporate Goals

26

• Phase 2 open-pit sampling Campaign at Bejanca

Tin/Tungsten Project (currently underway)

• Environmental and internal scoping studies at Borralha

(currently underway)

• Environmental, Metallurgical testing and bulk sampling at

Covas (currently underway)

• Initial mapping and sampling work at Vale Das Gatas Projects

Deliverables

• Complete environmental and engineering studies at Borralha
• Internal feasibility and scoping studies at Bejanca
• Metallurgical testing and bulk sampling at Covas

Summary

• Strong board and management team experienced in Tungsten and

mining operations in Portugal (Primary Metals and Panasqueira mine)

• Holds the four of the top seven past-producing Tungsten mines in

Portugal

• Covas NI 43-101 Resource Report (Highest Grade Open-pit Tungsten

Project in Europe)

• Borralha drill result: 118 metre intersection @ 0.29% WO3 (Highest

grade x thickness wolframite tungsten intercept ever reported) Portugal’s largest past producer, significant open pit potential

• Bejanca – 42% of test mining pits showed values greater than 400 ppm Sn

(tin), and showed an average content of 792 ppm Sn, and Contained an average of 35% fine sand containing 1,551 ppm Sn (1.6kg/t

• Strategic partners and shareholders in place

27

Contact

Alexander Langer President and CEO

Blackheath Resources Inc. Suite 306 – 850 West Hastings Street Vancouver BC Canada V6C 1E1 Phone: 604 684 3800 Email: info@blackheathresources.com

TSX Venture Exchange Symbol: BHR Frankfurt Stock Exchange Symbol: 04B

28