The following is an excerpt from Canaccord Genuity’s Morning Coffee newsletter.
Balmoral Resources Ltd. (
TSX: T.BAR,
Stock Forum) shares have been trending upwards following the close of their most recent financing and assay results from their Grasset land position.
[Editors note: Balmoral’s portfolio of advanced and early stage gold exploration projects is located in the Abitibi greenstone belt. This belt of ancient rocks, which stretches through Quebec and eastern Ontario, is home to the Detour Lake, Casa Berardi, Timmins, Kirkland and Val-D’Or gold mining camps and has produced well over 130 million ounces of gold].
Balmoral shares hit a new 52-week high of $1.68 on Friday after rising all the way from 30 cents in November 2013, leaving a market cap of $165.7 million, based on 101.7 million shares outstanding. The stock had previously traded in a 52-week range of $1.56 and 26.5 cents.
The company completed a flow-through share offering for total proceeds of more than $4 million, which will be used for further exploration of its Detour Gold Trend Project and other properties located in the Province of Quebec.
Balmoral holds a monopoly position with 82 kilometres strike, on the Quebec side of the Detour trend, which also hosts the world class 23 million ounce Detour Lake mine.
Most discoveries are high grade, near surface and located in mining friendly and safe Canadian jurisdictions. The company is headed by ex-CEO of West Timmins Mining, which was acquired by
Lake Shore Gold Corp. (
TSX: T.LSG,
Stock Forum) for $424 million.
Most recent assays have confirmed wide zones of high grade nickel-copper-platinum group metal values from one of the multiple horizons of sulphide mineralization within the 16 kilometre Grasset intrusive.
Highlights included an intersection of 17.6 metres of 2.45% nickel (+0.31% copper, 0.62 grams per tonne platinum and 1.57 grams palladium).
Balmoral is currently drilling and continued news flow from the prospective land position at Martiniere/Bug Lake and Grasset are expected, which should provide more data to determine the true resource potential.
The timing couldn’t be better as concerns over short to mid-term nickel supply have driven nickel prices to 24-month highs, as inventories have been shrinking.
FULL DISCLOSURE: Balmoral Resources is a Stockhouse Publishing client.