Balmoral Resources (BAR.TO) has some more good news coming from its Grasset project in Québec, Canada. The most important result is an intercept of almost 45 meters containing 1.53% nickel, 0.16% copper, 0.86g/t palladium and 0.37g/t platinum. If one would try to re-calculate this into a nickel-equivalent grade using the current commodity prices, the nickel-equivalent grade would be roughly 1.75%, translating into a rock value of approximately $300/t. Twelve holes have already been completed and it looks like the strike length of the Grasset mineralization could easily be doubled.
The company still has two drill rigs on site which should finish the current phase of drilling by the end of this month. Balmoral intends to start a winter drill program as soon as the ground conditions allow the company to do so. As Balmoral had a working capital position of in excess of $10M as of at the end of Q2 and just raised another $10M in a flow-through financing, the company is very well financed and shouldn’t have to go back to the market to raise cash within the next few quarters.
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Disclosure: The author holds no position in Balmoral Resources. Please see our disclaimer for current positions.
