Balmoral (BAR, TSX) The market’s expecting good news next week!

Nov 23

We’ve been watching 24 cents like a hawk for several months now, so it sure was nice to see BAR break above that key resistance Friday.  The stock jumped 18% on strong volume with nearly 1.6 million shares traded.  Watch for potential confirmation of the breakout early this coming week.  This means BAR must avoid a “sell on news”, trade strong volume at 25 cents or better and then hold above that price level on a closing basis – no easy task but very possible.

Assay results from 9 drill holes are supposed to be released any day now.  The market’s obviously expecting some good news!

Phase I of drilling Area 52 proved the monzonite is there!

This first phase of drilling also demonstrated there’s Gold in the sediments (a bonus) and that Gold mineralization appears to carry up to the bedrock surface.

Monzonite is the same preferential rock type hosting high-grade Gold next door at Fenelon where Wallbridge (WM, TSX) has been able to WOW the market time and time again (27 g/t Au over 38 m added $150 million to Wallbridge’s market cap).  We’ll know more Monday or Tuesday, but what we know now is that Balmoral hit the shear zone, where the shear cuts into the monzonite, on all 9 drill holes.

We also know Balmoral was seeing the right rock types and they hit VG on hole 1 of 9.

For weeks now, John Foulkes, VP of Corporate Development, has been telling people Balmoral fully expects to both confirm and expand upon their Area 52 discovery.

Based on that 18% jump Friday I’ve got a sneaky suspicion someone knows even more of the details.  Let’s hope the rumors are right and Balmoral wows the market first thing next week!

Hole FA-19089, an 800-m step-out to the NW of Fenelon that hit VG, kind of clues you in to what direction(s) all this is heading (mineralization continues to the NW and S).

FA-19089 (assays are pending) was a grassroots geological-geophysical target carrying Area 51-style mineralization 800 m further NW within the Jeremie Pluton.  Holes like that one and FA-19094, which undercut the WOW-hole (27 g/t Au over 38 m) by 100 m yet still intersected 13 m containing “abundant” VG, help explain why Wallbridge carries a $300 million market cap.  These highly anticipated assay results also help explain how WM can get smashed down to 50 cents on Thursday and then rally back to 60 the following day.

Speculators aren’t excited about very much in the Gold space right now, but they are excited about WM and Fenelon/Area 51.  BMR has been on top of this story from the beginning.

Question being: Will the speculative fervor spill over to BAR?

Thus far, Balmoral has proved Area 51-style mineralization continues onto Area 52, its 100%-owned project immediately south.  We’ll get assay results from another 9 holes next week.  That big 800-m step-out to the NW by Wallbridge is also encouraging for Balmoral because its Area 50 Project (also 100%- owned) isn’t but 300 m away and along trend.  Look for Balmoral to move the rigs toward Area 50 with its next next round of drilling.

BAR closed at 25.5 cents Friday, its 52-week high, and has a market cap of $43 million.  With approximately $6 million working capital Balmoral is well funded going into 2020.

WM closed at 59 cents for a market cap of $293 million.  Wallbridge plans to drill between 100,000 and 120,000 m next year.