Paying attention to local myths and legends may have led Primary Metals to a gold property in Portugal, but it was faith in another legend, the 112 year-old Panasqueira tungsten mine, that has led to prosperity. Lewis Black and his associates at Almonty LLC demonstrated great courage and foresight when they purchased a significant interest in Primary Metals, which owns the Panasqueira tungsten mine, at the time that tungsten prices were depressed and the market outlook was uncertain..

“The people in Portugal love the mine because the mine represents this great fighting spirit,” says Lewis Black, director, chairman and CEO of Primary Metals Inc. “Through thick and thin, it seems to survive. Not many mines or companies can say they are 112 years old.”

“We have extremely good relations with both governments, Portugal and Spain, because Panasqueira has a reputation of being a survivor. We think there are very good opportunities here, and we will select the ones that are realistic and feasible. That will keep us moving forward.”

Primary Metals Inc. owns a 100 percent interest in the Panasqueira tungsten mine in Portugal and is currently producing wolframite concentrates containing some 100,000 MTUs of tungsten trioxide per annum. In addition to operating the Panasqueira tungsten mine, the company is assessing the potential of its nearby Argimela tin deposit and its Quinta/Banjas gold property, also located in Portugal.

Purchased by Primary Metals four years ago, the Panasqueira tungsten mine is now producing 3,000 tons per day. In March 2007, Primary Metals announced that the total proven and probable reserve estimate had increased to 2.43 million tons with a grade of 0.243% WO3 (tungsten trioxide) compared to the 2006 estimate of 1.39 million tons with a grade of 0.233% WO3. This showed an increase of one million tons, together with a small increase in the tungsten grade of the reserves.

These new estimates, combined with the indicated resource estimates, total 5.13 million tons, enough to provide feed to the process plant for 8.5 years at the current operating rate of 600,000 tons per year, assuming tungsten prices stay near current levels.