balamara resources. our new asx code: bmb, page-3

You are not wrong D12, although I think that most people associate the word BOMB with an explosion. LOL

Quote:
Any talk of getting something into production? Like Peel wood or Monty? The money on hand wont last forever and without an income it's only going to mean more dilution for us long suffering shareholders?

Yes, there was a lot of talk on this subject.

MONTY:
We finished drilling at Monty at the end of Dec.
The purpose of this drill was simply to confirm the mineralisation.
Most labs had been closed thru the Festive season and they've only now re-opened.
The usual way is to give the samples to the lab, get results then send it to geo's for modelling and then if it's all looking feasible get an engineering Co to design a mine.

Based on the above chain of events, we would need 3 separate Co's to do the work.
Mike said that Derek is currently negotiating with a "one stop shop" in Poland which will do all of the above under one roof.

This will ensure a cheaper and faster process.

Our next drilling campaign is already prepared for Monty and will include a 2,900m diamond drill. I can't remember the depths that we will be drilling to but the main reason for this campaign will be to extend our JORC to areas where we have not drilled before and in the very prospective area of Zuta Perla.

We are ready to start but there is a lot of snow currently in the area and the area is in a very hilly terrain so we need to wait 4-6 weeks before we can start drilling.

The way Mike and Kevin (our Geo) were talking would make me think that we are still on target for a 2013 production. Let's not forget that it's 2012 already.

The cost of setting up the mine will be somewhere around $30M.
Mike said that if we do it alone he can't see a problem in raising this sort of money BUT he thru a little hint in here that we wouldn't need any money if we got a JV partner.
I asked later what the chances of that are but he was very tight lipped about it. I got a feeling that quite clearly something is cooking in this department.


While I'm on the subject of Monty, Mike confirmed that there are 3 new projects that are currently under discussions in the Balkans, one of which is a "producer".

Some of Mike's comments give me an impression that we are not only discussing a JV on Monty but these new projects are somehow tied up in there in some way, but that's only a speculation on my side.


PEELWOOD & ELSINORA:
My impression is that Peelwood is too small for us to worry about when we have much bigger fish to fry.

Elsinora could still turn out to be huge as it shows good signs of mineralisation but it still requires a lot more drilling.

Mike said that we are currently working on packaging both of these projects and possibly doing a JV with another Co which will take over the drilling etc and we just get free carried or something to that effect.

MONEY:
As of yesterday, the Co has $2.25M left in the bank as we just paid some big bills for our drillings.

The cost of drilling Bogdan will be about $500K but that's for 6 holes spread over say 6 mths.

Not sure how much Monty's drilling will cost but after discussion with our Geo- Kevin, I would assume that somewhere similar to Bogdan.

Togo doesn't look like it's costing us much at this stage.

Based on the above, I think that we have sufficient money to last us few more months.

I asked about any CR's coming up and Mike said that they are very reluctant to do anything that will dilute us. They are juggling things to use our money in the most economical way.

SUMMARY:
Guys, I've been to many AGM's and EGM's in my life but this one was probably one of the most frank and open out of all of them.

I was shooting questions across the floor and Mike was answering them without any hesitation.

I met another HC member ROCKNOCKER who was also there so maybe he can verify if my description of the EGM is accurate or maybe there are things which I forgot.

Please remember that this is only my recollection of the events and as exciting as our prospects are over the next 3-6 mths, we must remember that none of the projects are 100% certain to turn into company makers.
As a betting man I would say that our prospects would have to lie in the better then 50/50 range of success so there are still risks involved.