alkane resources in

03 September 2013
BALAMARA SECURES FARM-IN DEAL WITH ALKANE RESOURCES AT ELSIENORA GOLD PROJECT, NSW
First step in planned divestment of non-core assets: Alkane Resources, discoverer of the 2.96Moz McPhillamys deposit, set to continue exploration at Elsienora tenements in NSW
Balamara Resources (“Balamara” or the “Company”) (ASX: BMB) is pleased to announce that it has reached agreement with experienced Australian gold explorer Alkane Resources (“Alkane”) (ASX: ALK) to farm into its Elsienora Gold Project tenements in New South Wales.
Under the agreement, Alkane can earn up to an 80% interest in the tenements by spending $500,000 on exploration over three years, with a minimum $250,000 spend over two years.
This will allow exploration to be advanced at Elsienora without Balamara having to commit its cash resources to this non-core asset. This is consistent with the Company’s focus to progress the recently secured Nowa Ruda Coking Coal Project in Poland to production as its priority.
Alkane is an experienced Australian gold explorer which discovered the 2.96Moz McPhillamy’s Gold Project (ALK ASX announcement 5 July 2010) in joint venture with Newmont Australia Ltd, located approximately 75km to the north of Elsienora. Balamara is confident that Alkane has both the technical knowledge as well as the regional experience to realise the best possible exploration potential from Elsienora going forward.
Elsienora comprises two exploration tenements in south-eastern New South Wales where Balamara conducted an initial drilling programme in 2011 and 2012. Early indications from this exploration activity were positive, but Balamara has since focused its drilling in Europe, primarily at the Monty Zinc-Lead-Silver Project in Montenegro and the Bogdan Copper Project in Poland.
Balamara believes there is significant prospectivity at Elsienora and the Company welcomes a partner with Alkane’s experience to continue working on these tenements to add further value.
Balamara’s Managing Director Mike Ralston said the farm-in deal with Alkane was consistent with the Company’s strategy of focusing its attention on its advanced, Tier One resource projects in Europe and West Africa.
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“We have recently stated that we will be focusing our attention on our Tier One projects, namely the Nowa Ruda Coking Coal in Poland and the completion of the Togo Phosphate tender in West Africa,” Mr Ralston said.
“We would like to divest the Company’s original assets in a way that delivers both value and upside potential for shareholders moving forward.”
“We acknowledge the experience of Alkane Resources in this area and their success to date in locating significant gold deposits; this makes them an excellent partner for Balamara at Elsienora. We wish them every success in their exploration activities and we look forward to working with them in the future.”