BNL - Balkans Gold

[bigt]

Rights issue for options ann today. 1 for 2, at 1c, ex. at 25c, august 09. SP currently at 24c.

Don't these ann's usually stir up some interest in a stock? Seems to have promising projects in bulgaria, next to europes largest gold mine.

Would love to hear some thoughts on this as a trading opportunity.

 

[exgeo]

27m shares and 24m options (Aug 2009 25c options). Market cap of AU$ 8m undiluted or AU$ 15.3m fully diluted at a share price of 30c. Company has 4 projects, 3 of them 100% owned.

PROJECTS

1) Ogosta
(The following is from the Eurogold's website) More than 90 veins and stockworks, which vary in thickness from 0.5m to 2.4m, were explored between 1960 and 1975. More than 30,000m of underground development and more than 40,000m of diamond drilling was completed during this exploration. In a series of reports published between 1972 and 1983, the Bulgarian State exploration company, Sofgeoprochvane OOD, calculated resources as shown in the table below (historical Russian-standard, non JORC):

Reserve Category ......Tonnes ....Au g/t ......Au Oz .....Ag g/t ...Ag Oz
B & C1................... 2,900,000.... 5.2........ 480,000..... 92... 8,600,000
C2 & P1................. 4,600,000.... 5.7......... 840,000.... 92.. 13,600,000
TOTAL................... 7,500,000.... 5.5...... 1,330,000.... 92.. 22,200,000


2) Breznik
(from BNL 02/02/2007 presentation) Drilling on 1 of three known vein sets has resulted in+ 500m of mineralisation. Currently drilling for resource.

25 June 2007 update:
Drill results continue to confirm significant North Vein Gold mineralisation which now extends to a strike of 800 metres.
• 25 drill holes completed, awaiting results for 2 holes.
• Initial resource calculation based on drilling to date expected late June, early July 2007.
• Drill results include:
BC751 2.8m @ 5.54 g/t Au from 121.2m North vein
.(Incl’s 0.6m @ 18.9 g/t Au from 122.6m)
BC747 8.3m @ 2.45 g/t Au from 105.1m North vein
.(Incl’s 0.9m @ 15.7 g/t Au from 105.1m)
BC749 1.0m @ 4.52 g/t Au from 96.7m South vein

Managing Director Noel Taylor said “We have received assay results for another nine Breznik holes that have intersected the North and South veins along strike and to the east, indicating mineralisation extends to 800 metres of strike and remains open".


3) Rakitovo
(from BNL website) Exploitation of gold-silver mineralisation dating back as early as 400BC has been known to occur on the Project. Drilling undertaken in 2004-2005 has outlined a series of narrow gold bearing veins over a strike length of 1km within an alteration zone with a strike length of 2km.

............Diamond Drillholes Results (from Eurogold website)

Drillholes ID .Interval Width....Gold (0.5 g/t cut-off) Silver (0.5 g/t cut-off)
DDHC26 151-198m...... 47m........... 1.5 g/t...................... 17 g/t
DDHC32..... 0-14m...... 14m........... 1.7g/t....................... 31 g/t
and.......... 76-96m...... 20m........... 2.8 g/t...................... 22 g/t
and....... 133-143m...... 10m........... 3.7 g/t...................... 22 g/t


4) Peroto (Balkans earning 50% from Eurogold)
Balkans Gold Limited (“Balkans”) are earning a 50% interest in Peroto by spending up to US$200,000 for the drilling of two holes.

17/4/2007 Drilling underway at Peroto - first hole completed.

 

[exgeo]

Initial resource estimate for the wholly owned Breznik Project in Bulgaria of 1.76 million tonnes at 1.92 g/t gold and 5.9 g/t silver, containing 109,000 ounces gold, 335,000 ounces silver. Deposit starts at surface below 30cm of soil cover, extends over 800 metres of strike and to a depth of 140 metres; is open down dip and along strike.

exgeo comment: unlike some companies, BNL don't seem to sit on results for ages before getting around to calculating a resource. This seems encouraging with respect to future newsflow.