The Gold Report On BAR Todayhttps://www.theaureport.com/pub/na/13874
As far as a non-producer in the junior space, I like Balmoral Resources Ltd. (BAR:TSX.V; BAMLF:OTCQX). The team at Balmoral, led by Darin Wagner, has a time-tested business model with a really high probability of leading to major rewards.
Less than two years ago these guys sold West Timmins Mining to Lake Shore Gold Corp. (LSG:TSX) and gave investors an amazing return. Back in 2008, when times were tough, management continued to do exactly what they're doing right now and deployed my investment strategy, bang on. They had a great project and managed their treasury just right at a time when the world was screaming death in 2008. They also continued to market when no one else would. As a result, West Timmins was one of the first companies to come out of the gate with a bang in 2008. It went from
.13 to $3.00 in less than 12-months. That's a return over 2,200%.
I think Balmoral is a second chance for investors who missed West Timmins. It currently controls one of the largest land positions in the Abitibi, which is home to the second largest accumulation of gold in the world. It continues to hit high grades everywhere along the properties with a greater than 75% success rate. Not only does it have one of the largest land packages in the Abitibi, it's right beside what will become Canada's largest gold mine next year—Detour Gold's 15.6 million ounce Detour Lake mine. As I said before, I'm looking for potential takeover targets—companies like MAG and Balmoral. Both of these companies are smack-dab in the middle of what's either a producing mine or one that's going to be the biggest producing mine in Canada. That means Balmoral has the ingredients to be a prime takeover target. It just needs some more drill results to blend it all together.
Detour has already publicly stated that its strategy is to focus on high-grade mineralization within a 50-kilometer radius of its processing plant, and Balmoral fits right in. Last year Detour Gold also said it wouldn't be looking to acquire other companies until production began in 2013. Then, last September, it went out and acquired Trade Wind Ventures. So, it's not its first takeover and I can guarantee you it won't be its last. If you're Detour and you're about to become Canada's largest gold miner, what would you do? I think Balmoral, especially at these prices, looks very interesting.