Balmoral (BAR, TSX) Gets Bump Following Recommendation From Billionaire Eric Sprott

For a 2nd week in a row Eric Sprott highlighted Balmoral (BAR, TSX) in his weekly wrap-up.

I found it rather curious and intriguing how Craig Hemke (the interviewer) approached the topic: “A company called Balmoral, do you know anything about that one?”

The question was phrased as if they didn’t talk about Balmoral just a week earlier.

BAR could have slipped Hemke’s mind, totally understandable, but the stock was certainly top of mind for Sprott.  He reiterated the strategic nature of Balmoral’s land position, completely surrounding Wallbridge (WM, TSX), an aspiring mining company.  A new bit of information offered by Sprott this week is that Balmoral might decide to continue drilling the northern and southern boundaries of this Area 51 corridor, after drilling Area 52.

Sounds like a great strategy to me!  Hopefully Balmoral takes Sprott’s advice!

Success by Balmoral, drilling Area 52, would indicate this shear zone has multi kilometres of strike length.  And like Sprott said last week, “You start putting 2.5 km and depths of 600 m, we don’t know what the widths are, but man you could get some big-big resources here very quickly.”

BAR closed the week at 22.5 cents (holding strongly above the 200-day moving average!).

Technically speaking, BAR is displaying signs that point toward higher prices.  Following a 15-cent jump on volume, from 10 to 25 cents, it has only retraced 5 cents of that move so far (33% retracement).  Even the strongest stocks, like Garibaldi (GGI, TSX-V), will have 50% retracements, or more, during the course of a bigger upswing.

In my way of thinking, Balmoral’s +2 million ounce Gold resource and Nickel deposit (3.4 Mt grading 1.79% NiEq) can fully support its current market cap of $34 million.  The “Sprott Factor” has only started to kick in with BAR.  nSuccess at Area 52 would almost certainly bring a 3rd, 4th, and 5th week of coverage in his podcast (it’s possible he could have some results to talk about next week).  You can bet he’ll be working his way into a BAR PP too, at some point.