Balamara acquires buddy for Monty

THE BOURSE WHISPERER: Balamara Resources (ASX:BMB) has acquired a second advanced zinc-silver project in the Balkans region close to its existing Montenegro project (Monty).

The new acquisition is the Varesh project, which is located in Bosnia-Herzegovina just north of the capital city Sarajevo, and close to existing infrastructure.

The company said the Varesh project fits well with its Monty Project, which is currently undergoing a feasibility study, to provide it with a pipeline of near-production assets in Central Europe.


Balkans regional area showing location and proximity of Balamara’s two existing resource projects. Source: Company announcement


“We are delighted to add another exciting zinc-silver project to our rapidly expanding portfolio of quality resource assets in Central Europe,” Balamara Resources managing director Mike Ralston said in the company’s announcement to the Australian Securities Exchange.

“Our resource inventory and overall value will rise considerably as a result of this latest acquisition.

“The company has consistently acquired projects with attractive metals and low entry prices relative to their overall value, which also have significant upside potential that can be realised quickly and cost-effectively.

“Varesh has all these qualities and represents an important incremental step in the consolidation strategy we are developing in the Balkans region.

“Balamara understands the need to deliver size and scale and quality to achieve its goal of becoming an advanced mid-tier resource company, and the combination of Varesh together with our Montenegro and Bogdan projects underlines a growing portfolio of both advanced and early exploration projects, in a region where low operating costs ultimately gives our projects a big advantage compared to many other locations.”

The Varesh project consists primarily of two advanced polymetallic deposits – Veovace and Rupice – situated along strike from each other and approximately ten kilometres apart.

The project has been subject to previous drilling, the results of which has been made available to Balamara and is currently being collated digitally by Golder Associates in order to deliver an initial JORC compliant resource for Varesh, in the same way Balamara initiated its first JORC resource for the Monty Project last year.

Balamara said it anticipates a maiden JORC resource will be calculated within the next Quarter for the Varesh project.