PERTH (miningweekly.com) - ASX-listed Balamara Resources has expanded its footprint in Bosnia & Herzegovina with the acquisition of a second advanced zinc/silver project.
The Varesh project consists primarily of two advanced polymetallic deposits located along strike from each other, and around 10 km apart. In addition, there were several other early stage exploration prospects in the local area, which consist of highly prospective mineral occurrences, but have not yet been subject to any significant exploration.
Balamara said on Friday that it would target all deposits in the region in order to ultimately create one large production hub.
A maiden Joint Ore Reserves Committee-compliant resource would be calculated within the next quarter, the company said, and would consist of a combination of individual calculations for the two deposits. The resource would be based on over 14 000 m of previous drilling and 1 300 m of underground development.
Along with the Monty project, which was currently undergoing a feasibility study, Balamara now had a significant pipeline of near-production assets in Central Europe, which provided the company with a strong foundation to grow its ambitions, including its aim of becoming a significant supplier of quality base-metal concentrates from this region.
“We are delighted to add another exciting zinc/silver project to our rapidly expanding portfolio of quality resource assets in Central Europe,” said MD Mike Ralston on Friday.
“Our resource inventory and overall value will rise considerably as a result of this latest acquisition,” he added.
The Varesh project was acquired through a successful local tender award for around A$1.5-million payable in cash, as well as the issue of 18-million Balamara shares, for a total cost of around A$3.4-million.
The share payment was subject to shareholder approval at an annual general meeting, to be held in November.
“The company has consistently acquired projects with attractive metals and low entry prices relative to their overall value, which also have significant upside potential that can be realised quickly and cost effectively,” said Ralston.
He noted that the Varesh project had all of these qualities, and represented an important incremental step in the consolidation strategy that the company was developing in the Balkans region.
“Balamara understands the need to deliver size and scale and quality to achieve its goal of becoming an advanced midtier resource company, and the combination of Varesh together with our Montenegro and Bogdan projects underlines a growing portfolio of both advanced and early exploration projects, in a region where low operating costs ultimately give our project a big advantage compared to many other locations,” Ralston said.