dgh44s' summary of balamaras' current status

A great summary by DGH44. I didn't want it to die on the old ssc thread. (DGH44 hope you don't mind!!)


Post #: 7670110

I have just returned from the EGM.

Excellent and very insightful meeting.

Derek and Milos are in Europe so meeting was run by our MD, Mike Ralston.

1. All resolutions passed.

2. Our new name: Balamara Resources was passed unopposed.

3. The new name should come to effect next week with our new ASX code: BMB.
This should coincide with the launch of our new website.
If you forget the code, think of it as BOMB but without the "o".

4. All projects were discussed in detail but one that stood out from the rest was BOGDAN.

Docs for a drilling permit were lodged with Polish authorities on the 4th of January. The statutory period in which the Polish Govt must issue the permit is 30 days. This would take us to 3rd Feb. Add one week for rig mobilisation and the drilling should start by mid Feb.

Six diamond holes will be drilled in the first phase.
The first 3 holes will be drilled in specific locations with the following 3 hole locations adjusted, depending on the results from the first 3 holes.
Each hole will be 300m-500m deep and should take 3-4 weeks to drill plus lab work.
Derek is in Poland working (amongst other things) on securing other tenements.

You could clearly see that the Board is very excited and very bullish about this project.

TOGO:
Not sure if anyone was aware that Togo recently won a non-permanent seat on the UN Security Council for 2012/2013 and just last week was visited by US Secretary of State Hillary Clinton.

It's worth having a quick look at the below video which shows Togo's President as well as Togo's Prime Minister who will probably be two of the main decision makers in evaluating our tender.

http://www.reuters.com/video/2012/01/18/clinton-in-togo?videoId=228720692

You would think that the above political events can only lift Togo's image on the world scene.
This coupled with the involvement of the World Bank and the IMF should have a positive impact on our chances of success.

Mike also touched on the benefits to our Co of wining that tender.

The current market price for rock phosphate beneficiated to around 30% is $150-$170 per tonne yet the total cost of getting it into that stage is only $30 per tonne.
Now multiply the net profit by 10 million tonnes per year and you get the picture of what this project is worth to our Co.

There's still quite a bit more info on this and all the other projects but this post is getting a bit long so maybe it will be easier if you ask questions and I'll try to answer them based on today's meeting.



Post #: 7671554

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.