Balkan Resources (Private) - exploring the Perlati copper deposit in Albania

Full Report by Objective Capital , Oct 09, 2009 download full report
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Key Points:

• The Perlati licence is one of Balkan’s two priority projects
  Balkan Resources holds a 100‑percent interest in the 290‑hectare Perlati project in northern Albania. The property contains the previously identified Perlati copper deposit, a portion of which saw historical mining. The deposit contains a historic, non‑NI 43‑101‑compliant mineral resource of just under three million tonnes, averaging 2.45 percent copper, after accounting for probable depletion while the mine was in production.

• A second priority project offers added potential
  The Devolli project in southeastern Albania is another advanced project deemed a priority by Balkan Resources. The project is a joint venture between Balkan and European Nickel plc that includes the Kokogllave, Devolli and Zemblak exploration areas, which encompass 5,100 hectares of land. The project contains a nickel laterite deposit that has seen 136,800m of historic drilling, resulting in a historic resource potential in excess of one hundred million tonnes, averaging 1.21 percent nickel.

• Balkan is adding to existing data at Perlati with a new drill programme
  The company commenced drilling on the Perlati deposit in 2007 and eighteen holes have been completed to date. Balkan proposed a second phase of drilling that would allow the company to upgrade the historic calculations to a NI 43‑101‑compliant indicated and inferred resource. As well, the company intends to expand the known mineralised zone, which remains open, and to test new targets on the property.

• Modern exploration techniques and assaying could expand the potential of Perlati
  The historic assays concentrated on copper, and tests for precious metals and zinc were spotty at best. Tirex Resources is in the midst of a multimillion‑dollar exploration programme on its Mirdita property, which surrounds Perlati, and its assays show significant zinc, gold and silver values.

• Balkan is conducting advanced exploration on the Devolli Project
  Balkan Resources has commenced a series of confirmation drill holes on the Kokogllave property this year and assays from the first tests are positive. European Nickel completed 9,257 metres of diamond drilling to complete their JORC-compliant report on the Devolli portion of the project. The company has embarked on a prefeasibility study that includes completing 44,000 metres of drilling, which should be sufficient to upgrade the historic data to NI 43-101 standards. Balkan plans to employ European Nickel’s patented heap leach technology for the Devolli Project which has been successfully implemented on the Caldeg nickel laterite deposit in Turkey.

• Our assessment yields a core base-case valuation of C$0.29
  We assess Balkan Resources’ current value at C$0.29 per share, with significant potential for appreciation with exploration success. Continued development suggests valuations as high as C$1.16 per share in the post‑ermitting environment under more optimistic scenarios.