Balamara Resources begins work on new JORC resource at Monty project
Work has begun on a new JORC resource on its flagship Montenegro zinc-silver project in central Europe following excellent drilling results, Balamara Resources Ltd (ASX:BMB) revealed.
The company is targeting production at the "Monty" project by 2014 and it is currently working on a feasibility study alongside exploration.
New results from holes completed in July together with previous drilling has outlined extensive mineralisation with three separate horizons, notably the continuation of a high-grade zone beneath the historic open pit at the Brskovo deposit.
Best results include 9 metres at 340.4 grammes per tonne (g/t) silver, 2.43 per cent zinc, 1.74 per cent lead and 0.25 per cent copper.
This includes 4 metres at a grade of 731.2 g/t silver, 4.58 per cent zinc, 3.19 per cent lead and 0.47 per cent copper.
Chief geologist Kevin Alexander told investors the three stratigraphic horizons of continuous zinc-lead-silver mineralisation extended over 80 metres in strike length and 20 metres in width.
"The upper two horizons consist of zinc and lead mineralization with combined grades of 10 per cent over robust widths of 10 metres or more.
"The third stratigraphically lowest horizon contains extremely high grades of silver in addition to high zinc and lead and appears to be a new discovery.
"We are continuing to step out further to test logical extensions of this zone with a second rig operating as part of a new, third drilling programme already underway at Brskovo".
The revised resource will incorporate the better-than-expected zinc and lead grades for the upper and middle horizons and will also provide an estimate of the silver grade for the first time.
Mike Ralston, the company's managing director, added: "We are delighted with these latest assay results as they continue to add further value to our rapidly transforming Montenegro project.
"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 12,000tpa of zinc, 12,000tpa of lead, 2,000tpa of copper and 500,000 oz pa of silver from Monty based on ore throughput of 500,000tpa, which would provide Balamara with a substantial first production centre in Central Europe".
Balamara has recently doubled its 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 this high-grade silver zone.
BMB Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
