Balkan Mining, with an enterprise value of just $7m, has just...

Balkan Mining, with an enterprise value of just $7m, has just announced that they have recommenced a major drill program at the Gorge Lithium Project located in Ontario, Canada.

This is an exciting project due to their recent exploration success with their fieldwork program which returned two rock chip samples returning 5.75% and 6.80% Li2O values.

This led to further exploration in the form of a channel sampling program which returned high-grade lithium assays, including 1.8m @ 3.75% Li2O which confirmed significant project potential.

There aren’t many lithium juniors that have these kinds of results sitting on a $7m enterprise value. Especially with a world-renowned Director on the board.

In 2022, Karl Simich stepped down as Managing Director of Sandfire Resources, with a close to $3B valuation. He oversaw its transformational growth from a junior micro-cap to a successful mid-tier producer with a global footprint.

Throughout his career, Mr Simich has overseen the financing and development more than 10 mines in Australia, New Zealand and Africa, including base, precious and industrial metals spanning small to large-scale open pit, underground and alluvial operations.

Not long after his departure from Sandfire, Karl joined the BMM team as a director. Interestingly, Mr Simich purchased 1 million new shares in a recent placement with a value of $170,000.

In addition to this, Karl has the following performance incentives, which if they are achieved, would results in significant share price appreciation:

• 2,000,000 Performance Rights upon the Company achieving a market capitalisation of no less than AUD$40,000,000

• 800,000 Performance Rights upon the Company achieving a market capitalisation of no less than AUD$80,000,000

• 3,000,000 Performance Rights upon the Company achieving the successful return of a “commercial lithium drilling intersection”.

This current drill program at the Gorge project kicked off in September and drill hole NL-23-001 intersected spodumene pegmatite from 7.6m to 11.0m. The company also announced the “pegmatite is composed of very coarse spodumene crystals”.

The drill assay results from this particular drill hole were expected in ‘4-6 weeks’. Assuming the lab results are on track, we can expect these results in the next couple of weeks.

The recent drop in the share price can probably be put down to a delay in the companies drill program due having to “observe the hunting activities of the region’s First Nations people”. Another factor has been the type of drill rig being used which resulted in complications due to the hard ground conditions.

This resulted in BMM announcing a change in drilling contractor which has a Diamond Core rig which will substantially increase capability to efficiently drill through harder rocks. This new team has now committed to working on a 24-hour, seven day a week shift. Hence the drill program will be extremely fast and we should see a steady flow of results over the coming weeks and months.

Balkin Mining and Minerals is a client of Phoenix Global Investments & Phoenix is paid a fee by all stocks mentioned. No information is personal financial advice & all information is general in nature. CAR 001299284.