Balmoral Resources Ltd BALMF

BAR up due to WM rich find?

[Goodtoreadthis1]

Reading the RUM PR from BAR reminded me of the hokey "new finds" of BAR at Martinere and Bug Lake.  Between Bug Lake and Grasset I expected BAR was a can't miss stock. Problem was and is is that the maiden resource estimate was considerably below the image and rhetoric of the company.  Now we have a pile of outcropping blue rocks that lend themselves to the retorical flourish of BAR mgt.  While that "blue pile" of rocks has a mineral composition that is complex, it is still a small pile of rocks. 

In the meantime, our neighbor Wallbridge is busy drilling deep in the area of Fenelon which we sold them. In contrast to BAR's blue rocks, WM reports simple, staggeringly rich gold finds in ground next to BAR's.  WM called attention to their find by halting trading in their stock before the PR hit the street while BAR pulled out it's literary pen and began to describe "blue rocks" to the world. 

Both stocks are up today. Because WM openly speculated that the gold riches seem to get richer at depth in the Fenelon, the size of the bid orders for WM today is huge. BAR broke out of it's share price steady decline when it reported WM type gold finds at it's area 52 property next to WM's area 51 property.  If BAR stays focused on proving rich or at least healthy gold finds in Area 52 and sells that area to WM, it is possible to limit the dilution of BAR shareholders in a meaningful way. 

The BAR PR on Blue Rocks today read like the report of a youngster at a high school science fair. DW and JF know that mining and producing NI is one of the most expensive mineral exploitations anyone can undertake.  GPY is proving constantly that gold can be mined and refined cheaply ($400 per ounce) using primitive, non-chemical means, so if BAR stays focused on Area 52  and proves up healthy gold finds, BAR can advance with less dilution of shareholders than a fanciful Blue Rock" pursuit might entail. 

I own sizeable positions in both BAR and WM and because I bought into the early on sizzle at BAR, that position is seriously under water, while the WM position is moderately profitable.  WM has other projects which it mentions but does not highlight. If BAR were to learn from WM's example and stay focused in it's drilling and writing on the Area 52 gold, the BAR share price might recover.  Given BAR's weak cash position, the market is unlikely to fully fund an entirely NI pursuit or an unpacking of the Blue Rock phenomenon.  I for one don't need a literary flourish to accompany any of my mineral investments.  I'd some day like to have a profitable BAR and WM position.