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Balmoral Resources (TSX: BAR) Active Drilling Program for Gold and Achieving Excellent High Grade Gold Results in the Abitibi Gold Belt in Mining-Friendly Canada

on 2/10/2014

Darin Wagner, President and CEO of Balmoral Resources (TSX: BAR)

Balmoral Resources (TSX: BAR) recently visited the Cambridge Resource and Investment Conference in Vancouver, where they shared their company developments with the team from Metals News.

Darin Wagner, President and CEO of the company, is pleased with the progress they have made on their projects. He said, “We are a high grade Canadian gold explorer. Our primary project is located on the northern edge of the Abitibi greenstone belt. We are right along trend from Detour Gold.” With several high- grade gold zone located in close proximity, the Company is one of only a very few in Quebec who will be actively drilling this winter.



The results of their drilling programs to date have yielded numbers about which Wagner and his team are enthusiastic. He said, “We are kicking out some great high grade gold numbers. Our most recent results included an intercept of 27 grams over 6.5 meters. We have consistently produced grades in excess of 8 g/t – the historic average grade of producers in the Abitibi. Those are quality ounces almost regardless of the gold price.” Wagner’s focus is on making sure that the numbers, which result from their drilling program, reflect high quality targets. He said, “That is the focus for us. We want to focus on quality and let the quantity build up over time.”



The focus on finding quality ounces is a direct reflection of the company’s dedication to their investors. Said Wagner, “We have a strong track record of being able to deliver those quality ounces for our investors.” While the company has not yet delivered a maiden resource from the project they have significantly increased the size of the gold mineralized zones. Wagner said, “There is no 43-101 on the project right now. The zones have doubled over the last year. We have about another year of drilling before we are ready to deliver that first resource.” From the data they do have, Balmoral Resources is moving the project forward. Said Wagner, “All our drilling is shallow with the known zones coming to the bedrock surface. It is showing the propensity to build itself up nicely.”

The Company is planning an active winter with drilling underway. Wagner said, “We will be out there at the end of January, beginning of February to drill more.” The winter program will combine infill drilling towards the maiden resource and further expansion drilling, particularly in the Bug Lake area.



Wagner’s not a big fan of incremental resource estimates, in particular with the current market not being overly responsive to good news. He said, “What we have seen over the last two years is that putting out a resource statement gives virtually nothing to the shareholders in the market so we are not inclined to deliver incremental resource statements along the way. We want to get it drilled out first. It makes a lot more sense to do it once and to do it right when the market it permissive; to let it have the impact that it should. We have no firm time line, but continue to work in that direction.” Wagner and his team will have a great deal of data to review and will eventually publish the information for the perusal of the market. He said, “By the end of the year we should have two of the zones ready with information.”

While there is resource near the surface, the company believes the will eventually be working underground. Wagner said, “Because of the grade profile, usually these are done underground. At Bug Lake you could see a starter open pit. The bulk of the ounces – because they are at the high grade end of the spectrum – will be developed underground.”



The focus for this year is a lot of drilling. Said Wagner, “In 2014, our aim is to put down 5000 to 6000 meters down depending on the winter weather. We will have a little downtime from mid-April to mid-June as things dry out. We will be back out there in June. Nominally we will be looking at another 10,000 or more meters over the summer.”

Financially, the company is stable. Wagner said, “We’ve got roughly $10 million dollars in the treasury at the moment. Five million dollars of that is the budget for this year. We can increase the drilling budget if we are happy with the results and market response.” Wagner and his team are moving at a rate they believe will be rewarded by the market. He said, “The market conditions have shown a ‘go slower’ approach. For two years now there has been little market response to good news. The market is waking up and our stock price has doubled in the last two months off the back of our strong exploration results. This is a positive step forward and hopefully the market will gather additional momentum as the year moves on.”

Even with the market challenges, Wagner believes that they have an amazing opportunity in their work. He said, “We have a great location with an experienced management team that has had success in the past. We have the money to do the work. We need to be out there with drills turning. This is a lot of way separates Balmoral and a handful of others from the pack. If you are counting on the market to lift you that is not a strategy that will make your shareholders a reasonable return on their investment, for that you have to be active and growing.”



Wagner is satisfied with the financial stability of the company and the location of their projects. He said, “We have 94 million shares outstanding currently and 104 million fully diluted. We have warrants are coming due in the fall at $0.75 cents and they represent a near term target for us. Management holds about 12 percent which is healthy. I hold about three point 8million shares. We have seen our retail base grow in tough markets. The second largest gold producer on the planet (Goldcorp) has made a really aggressive statement on Canada, gold and the Abitibi with their bid for Osisko. The industry leaders just told you where they are putting their money. Looking at that Canadian Abitibi is what investors need to do if they are active in the gold space.”

http://www.balmoralresources.com/

Balmoral Resources Ltd.
Suite 2300 - 1177 West Hastings Street
Vancouver, BC
Canada V6E 2K3
Telephone: 604-638-3664
Fax: 604-648-8809
Toll Free: 1-877-838-3664

Investor Inquiries:


John Toporowski, Manager, Corporate Development
Telephone: 604-638-5815
Email:
jtoporowski@balmoralresources.com




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