http://www.fox-davies.com/media/34504/balamaraflashnote4july2012.pdf Third hole intersects Kupferschiefer horizon
Event Balamara Resources (“Balamara”) announced that the third drill hole at its Bogdan Project in Poland has intersected mineralisation in the Kupferschiefer horizon. In the latest hole, copper minerals have been identified visually in core over an 8.3 m interval extending from 350.5 m to 358.8 m below surface. The Company also announced that it has completed a ten for one share and option consolidation.
Comment The drilling programme at Bogdan is achieving consistent results. Hole B1 intersected the Kupferschiefer horizon and yielded grades of 2.39% Pb, 0.42% Cu and 18.9 g/t Ag over 2 m from a depth of 284 m. Hole B2 also intersected the horizon at a similar depth and the core, which we observed whilst on-site in May, looked very similar in its mineralogy and is likely to show similar grades. Although the copper grade in Hole B1 was lower than we were expecting, the fact that the drilling intersected the all-important Kupferschiefer, at the depth expected, is positive as it supports the geological model that the horizon continues into the Bogdan licence from the neighbouring KGHM mining operations. Hole B3 has also intersected the horizon, further reinforcing its continuity. The hole also appears to contain more visible copper sulphides than in the previous two holes which should yield higher copper grades.
Balamara has sent the samples from Hole B3 to the laboratories for assaying and is awaiting assay results for Hole 2, which was completed one month ago. Current assay turnaround time is five to six weeks.
The location of the drill holes is shown in Exhibit 1. The assay results from the drill programme are tabulated in Table 1.
Recommendation We retain our Buy recommendation on the Company. Our price target has been increased to A$0.22 from A$0.022 in light of the share consolidation.
BMB Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
