More silver hits signal resource upgrade for Balamara

THE DRILL SERGEANT: Balamara Resources (ASX:BMB) has started working up an updated JORC Mineral Resource for the company’s Montenegro base metals project, affectionately known as Monty, in Central Europe.

 

Balamara’s Central European project locations. Source: Company announcement

 

The calculators and slide rules were put to work after the company received results from drilling that targeted extensions to the recently discovered high-grade silver-zinc-lead zone at the Brskovo deposit.

The new results have combined with previous drilling to outline an extensive mineralised system with three separate mineralised horizons.

Balamara noted the results had highlighted the continuation of this high-grade zone beneath the historic open pit at Brskovo.

“We are delighted with these latest assay results as they continue to add further value to our rapidly transforming Montenegro project,” Balamara Resources managing director Mike Ralston said in the company’s announcement to the Australian Securities Exchange.

“Silver prices have recently risen over 25 per cent and we are confident that the outlook for zinc prices in the medium term is also very positive given the supply-demand fundamentals for this metal.

“The current feasibility studies are targeting production of around 12,000 tonnes per annum of zinc, 12,000 tonnes per annum of lead, 2,000 tonnes per annum of copper and 500,000 ounces per annum of silver from Monty based on ore throughput of 500,000 tonnes per annum, which would provide Balamara with a substantial first production centre in Central Europe.”

Highlights from the recent drilling include:

–    9 metres at 340.4 grams per tonne silver, 2.43 per cent zinc, 1.74 per cent lead, and 0.25 per cent copper from 161 metres, including 4 metres at 731.2 grams per tonne silver, 4.58 per cent zinc, 3.19 per cent lead, and 0.47 per cent copper from 163 metres;

–    11m at 10g/t silver, 3.83 per cent zinc, 2.86 per cent lead, and 0.06 per cent copper from 115m, including, 7m at 15.7g/t silver, 5.47 per cent zinc, 4.05 per cent lead, and 0.09 per cent copper from 115m;

–    18m at 12.5g/t silver, 3.75 per cent zinc, 2.71 per cent lead, and 0.19 per cent copper from 134m, including, 8m at 17.6g/t silver, 6.23 per cent zinc, 4.25 per cent lead, and 0.29 per cent copper from 137m; and

–    21m at 10.2g/t silver, 3.04 per cent zinc, 2.59 per cent lead, and 0.18 per cent copper from 109m, including, 8m at 13g/t silver, 3.81 per cent zinc, 3.65 per cent lead, and 0.13 per cent copper from 110m, including 5m at 15.7g/t silver, 4.49 per cent zinc, 3.58 per cent lead, and 0.41 per cent copper from 124m.

Monty consists of a series of polymetallic deposits with a combined initial JORC-compliant Inferred Resource of 9.2 million tonnes at 3.8 per cent zinc, 1.2 per cent lead and 0.36 per cent copper containing 350,000 tonnes of contained zinc, 110,400 tonnes of lead and 33,120 tonnes of copper.

“Monty has always been our flagship project as it was Balamara’s first asset in the Balkans region,” Ralston said.

“We are delighted with the progress we are making there and we will continue to extend the drilling program to build the resource further in parallel with the feasibility work we are already doing in order to enhance the value proposition.”

Balamara recently doubled drilling capacity at Monty with two rigs now operating around the clock on the Brskovo deposit to drill out the resource and to target further extensions to the high-grade silver zone.

The company said this should allow initial mine planning to be conducted as planned in the first half of 2013.