good results

Level 1, 350 Hay Street,
Subiaco, WA 6008
ABN 84 061 219 985
P: +61 8 6365 4519
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23 November 2012
BALAMARA SET FOR RESOURCE UPGRADE AT MONTY AFTER INTERSECTING WIDE ZONE OF HIGH-GRADE ZINC, LEAD AND SILVER
New thick intersections to be incorporated in JORC upgrade, targeted by year-end
Key Points:
• Further excellent drilling results extend upper zone of massive zinc-lead-silver mineralization at the main Brskovo deposit, with drill-hole DH-3 intersecting a wide zone of high grade zinc-lead-silver mineralization, including:
• 28m @ 4.89% Zn, 3.63% Pb, 0.27% Cu and 14.3 g/t Ag including;
o 12m @ 7.30% Zn, 5.12% Pb, 0.45% Cu and 20.4g/t Ag.
• Drilling confirms presence of two broad zones within the Brskovo system – upper zone with moderate to high grades of zinc + lead plus silver & copper, lower zone of moderate grade zinc + lead with extremely high silver grades.
• JORC Mineral Resource upgrade for the Monty Project targeted by the end of 2012, to be based on results from seven new drill-holes.
Balamara Resources Limited (ASX: BMB) (“Balamara” or the “Company”) is pleased to advise that it is on track for a resource upgrade at its Montenegro Base Metals Project (Monty) in central Europe after reporting thick intersections of high-grade zinc, lead and silver from a further three recently completed drill holes.
Balamara is targeting completion of the JORC resource update by the end of 2012. Monty is one of three Central European projects held by Balamara (see Figure 2).
These new results are for holes DH3-12, DH8-12 and DH9-12, drilled at the main Brskovo deposit, which complement the previously reported results from holes from DH1-11, DH2-11, DH4-12 and DH10-12. Drilling has outlined an extensive mineralized system at Brskovo with two broad, well defined zones (see Figure 1).
The upper zone is characterized by higher grade zinc-lead mineralization, locally over 20 metres in true thickness as exemplified by holes DH3-12 and DH10-12. In some places, such
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as in DH1-11 and DH2-11, this zone bifurcates into two higher grade zones separated by lower grade material. The lower zone is characterized by moderate zinc-lead mineralization with locally very high grades of silver.
In particular, these drilling results have highlighted the continuation of the high-grade zones beneath the historic open pit at Brskovo. The most significant intersections are:
Hole DH3-12:
• 28m @ 4.89% Zn, 3.63% Pb, 0.27% Cu and 14.3 g/t Ag from 111m including:
o 12m @ 7.30% Zn, 5.12% Pb, 0.45% Cu and 20.4g/t Ag from 117m
Hole DH8-12:
• 29m @ 2.25% Zn, 2.02 % Pb, 0.17 % Cu and 8.1 g/t Ag from 101m including including:
o 7m @ 5.33% Zn, 3.61% Pb, 0.49% Cu and 17.6 g/t Ag from 110m
Hole DH9-12:
• 19m @ 1.85% Zn, 2.04 % Pb, 0.13 % Cu and 9.2 g/t Ag from 100m including:
o 6m at 2.57% Zn, 2.18 % Pb, 0.18 % Cu and 10.7 g/t Ag from 108m
The upper zone is approximately 20-25m wide with a core of around 10-15m of generally 10% combined zinc and lead plus 15 g/t silver. It was previously described as two separate zones but is now considered to be a single mineralized system. Locally it bifurcates into two strongly mineralized zones, as seen in holes DH1-11 and DH2-11, although the material in between is still mineralised (albeit of lower grade) and the overall system is spatially continuous.
The lower zone is variable in thickness and grade but is approximately 5-10m wide with a combined lead and zinc grade of approximately 7% and 0.30% copper. However, the distinctive feature of the lower horizon is the extremely high silver grades, as exemplified by the intersections in holes DH1-11, DH2-11 and DH4-12.
The current drilling has intersected the upper level high-grade zinc horizons and the lower level high-grade silver horizon at depths ranging from 80 to 150m below the base of the previous open pit at Brskovo, in locations that Balamara considers to be mineable.
The upper zinc-lead dominant horizon is open at depth and in both directions along strike. The total strike length is currently 150m and is expected to extend further to the south-west by drill holes DH5-12 and DH6-12. The lower silver-dominant horizon is open at depth and to the north-east and currently has a known strike length of approximately 100m. It thins out to the south-west and was not strong in holes DH3-12 and DH9-12, which are dominated by zinc-lead mineralization with low to moderate silver grades. In this area, the high-grade silver has merged into the general zinc-lead-silver mineralization, suggesting that there is zonation within the mineralized system.
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Figure 1: Zones of mineralization relating to new holes at Brskovo deposit
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Assays have now been received for seven holes in total. A further three holes, DH5-12, DH6-12 and DH7-12, have also now been completed and samples have been submitted to ACME laboratories in Vancouver for analysis. Results are expected within the typical 6 week turnaround time.
Brskovo is one of three deposits that make up Balamara’s Monty Project. The other two deposits are Visnjica and Zuta Prla and together the three deposits form a single coherent mineralised system. Individual deposits are located close together, occurring within a central radius of just 2km. Ultimately Balamara envisages production being achieved from all three deposits, blending and feeding into a single centrally located plant.
In May 2011, Balamara announced the initial Inferred Resource for the Monty Project (calculated by Golder Associates), comprising 9.2Mt at 3.77% zinc, 1.21% lead and 0.36% copper (see Table 1).
This initial resource was conservative and was based entirely on historical drilling results. Balamara has undertaken further drilling at all three deposits in order to reclassify tonnes as well as to increase the overall tonnage and enhance the overall grade. This drilling programme has been underway over the past nine months and will continue into 2013.
As a result of work completed to date, Balamara has commissioned Golder Associates to undertake an update of the resource based on the results obtained from the first seven holes at Brskovo.
The updated resource will target an upgrade to Indicated status of material currently in the Inferred category. It will also target an initial tonnage and grade for silver. Significant silver mineralization occurs within the entire deposit but historical sampling for silver was intermittent and therefore insufficient to obtain an overall silver grade for the Brskovo deposit based on historical information. This may now change and an update of the resource is targeted for completion by the end of 2012.
The current drilling programme at Brskovo is ongoing and a further six holes are planned for 765m. This will result in a further update to the JORC resource towards the end of the first half of 2013.
Preliminary drilling including four holes at Visnjica has also been completed, with samples submitted for analysis and results are awaited. This will be followed by additional drilling and an update to the JORC resource at Visnjica which is also planned for the first half of 2013.
Balamara’s Managing Director, Mike Ralston, said the drilling programme at Monty was continuing to return excellent results, with results demonstrating that the upper zone of mineralisation is wide, contains a consistent strongly mineralised core of 10-15m in width, and is significantly higher in grade than the current JORC resource.
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“The lower zone contains some extremely high-grade silver in areas and is a new discovery which remains open to the north-east and at depth,” Mr Ralston said.
The Monty Project is a significant mineralized system with three deposits located within a central radius of just 2km. Brskovo and Visnjica had only minor surface expressions and Zuta Prla was a blind discovery.
“We believe that the potential to discover new deposits within the immediate area is excellent and we have begun evaluating possible suitable geophysical methodologies, in particular EM methods, with a view to applying these techniques to the discovery of shallow but blind deposits in the immediate surrounding area. Any success in this regard and Monty could increment in size and scale substantially.”