maandag 6 juni 2016

Balmoral Resources

By now investors are already aware of the new bull market in gold and one of the best ways to cash in on this is to buy high quality mining companies. In this article I want to introduce a gold exploration company that is still in its early stages of development: Balmoral Resources (BALMF).

The company is focused on 2 projects: the high-grade Martiniere gold system and the large H3 (Grasset) nickel-copper-PGE discovery (see map below). What I like very much is that the La Martiniere deposit is located just 40 km from Detour Gold's Detour Lake Mine, which has a production of 650k gold ounces per year and 16 million ounces of gold reserves. So there is a high chance that a partnership could materialize between Detour Gold and Balmoral Resources. There are examples of such partnerships where a producing mine buys the exploration company and hands out royalties: see my article on Golden Arrow Resources (GARWF). Other than Detour Gold, we have Hecla's Casa Berardi mine in the western part of Quebec and Glencore's Matagami mine to the east. So there are plenty of partnership and financing possibilities.

Read further here.

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