Balkan Resources (Private) - drilling programme planned

Comment by Objective Capital , Dec 24, 2009
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Balkan Resources is planning a major drill programme on its Perlati copper project in northern Albania and a lesser, although still significant drill programme on its Librazhd nickel project in central Albania. The two programmes will allow Balkan Resources to significantly advance the two projects. The company has contracted an Albanian subsidiary of a Canadian-listed drilling company, Cabo Drilling Corp, to complete both programmes.

At Perlati, about 50 kilometres north of Tirana in the copper district of Merdita, Balkan plans 13,000 metres of drilling, with the objective of delineating its known deposit sufficiently to develop a NI 43-101-compliant mineral resource. As well, the company will attempt to expand the known extent of the deposit and test additional targets in the area.

At Librazhd, near Dardhe, Balkan Resources intends to complete three exploration holes into an area with no known drilling data, but where surface excavations led to development of a historic , non NI 43-101-complinat resource.

Balkan Resources continues work toward obtaining a listing on the TSX Venture Exchange in Canada. The company has recently cancelled all 2.48 million stock options granted to officers, directors, employees and consultants, but plans in future to issue stock options to key personnel in accordance with exchange policies.

Objective's view:

Although the drilling on Librazhd is encouraging, this prospect is not currently a top priority for Balkan Resources, which currently ranks the Devolli nickel project as a higher priority. The drill programme planned for Perlati is of much greater importance, not only because of its scope, but because the project is more advanced and a top priority.

With a clear plan to advance two of its mineral projects in Albania now in hand, we hold our base case and optimistic valuations of Balkan Resources as detailed in our initiation note of September 2009 with greater degrees of comfort.