NEWS RELEASE.

October 30, 2013: Vancouver, BC – Balmoral Resources Ltd. (Stock Profile – TSXV:BAR & OTCQX:BALMF) reported initial results from the summer/fall drill program on its wholly owned Martiniere Property. Highlights included extending the Bug Lake Gold Trend to over 1,000 metres along strike with a higher grade intercept of 19.05 g/t gold over 1.16 metres in the southern-most hole to date (MDE-13-113), a bonanza grade intercept of 99.80 g/t gold over 0.48 metres in down-dip testing of the main Bug Lake Gold Zone and a high-grade intercept of 5.59 g/t gold over 2.30 metres from a new discovery located 250 metres east of any previous gold intercepts on the Property. The Martiniere Property forms part of the Company’s 600+ square kilometre Detour Gold Trend Project in Quebec.

Bug Lake Expansion Drilling

Three holes, MDE-13-116 to -118, collared 300 metres south along strike of the southern-most historic Bug Lake Gold Trend intercept, successfully extended the Trend to over 1,000 metres. The Trend remains open to the south towards the regional scale Sunday Lake Deformation Zone. Hole MDE-13-117 returned an intercept of 7.44 metres grading 3.34 g/t gold including 1.16 metres grading 19.05 g/t gold (see table below). This hole also collared into a new, broad zone of anomalous gold mineralization which returned 13.07 metres grading 0.31 g/t gold from the bedrock collar.

For a table of the results – CLICK HERE.

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The price of gold gained $10 per ounce in London trade Thursday morning, gaining 2.2% for the week so far to trade at $1346 as several analysts said they were “turning bullish”. 

World stock markets ticked higher, while the Euro slipped from 2-year highs vs. the Dollar after weaker-than-expected PMI economic data, led by a sharp in services sector growth.

China’s manufacturing PMI from Markit/HSBC meantime ticked higher to a 7-month high, beating forecasts at 50.9. A reading of 50 would indicate no change in the level of activity reported by those businesses surveyed. New data however showed China’s biggest banks tripling their write-downs of bad debt on Wednesday. Today money-market interest rates in Shanghai jumped more than one percentage point to stand above 5%, the highest level since June’s sudden double-digit costs.

“Here we go again, and once again no-one is listening,” says SocGen strategist Albert Edwards in his Alternative View today. “Signs of bubbles abound, the most visible one being house prices” in China, the UK and even Germany.

“We all know how this story ends,” the FT this week quoted leverage finance manager Matt Toms at ING Investment Management. “The question is trying to figure out exactly when.”

“We’re in the third year of the greatest leveraged finance markets of all time,” the paper also quotes Craig Packer at investment bank Goldman Sachs, who cites the “the efforts by the Fed, and all the central banks around the world, to keep rates at zero.”

Chart analysis of the gold price now points to a move higher, said technical strategist MacNeil Curry at Bank of America-Merrill Lynch in New York on Wednesday, changing his formerly bearish view and looking for a break above resistance at $1433 back to $1500 and then $1533 – the level from which gold crashed this spring.

“Overall we are [now] bullish gold,” agrees technical analysis from ScotiaBank, “looking for a move to $1400 while the metal holds above $1300.”

“Gold might need to simmer and consolidate before making the next move,” cautions the trading desk at Japanese conglomerate Mitsui in Singapore.

“[Even] we acknowledge,” says analysis from Swiss investment bank Credit Suisse, repeating its long-term call for lower prices nevertheless, “that the technical picture has become less overtly bearish in the short term.”

“The general feeling seems to be bullish,” says a note from Marex Spectron’s brokers in London, “which is so often the way when precious metals are near their highs.”

Overnight in the gold market, “Physical demand remains soft,” said an Asian dealer, “though we are seeing good turnover in silver, mainly from Indian counterparts.”

Gold holdings at the giant New York-listed SPDR Gold Trust (ticker: GLD) were unchanged last night near four-and-a-half-year lows.

On the silver front, the $7.5 billion iShares Silver Trust, in contrast, added 75 tonnes of silver to the holdings needed to back its exchange-traded shares (ticker: SLV). The largest 1-day addition in more than a month, that put the SLV’s total holdings at 10,442 tonnes of silver bullion – down 300 tonnes from May’s all-time peak but still equal to more than 40% of last year’s silver mining output worldwide.

Silver scrap supplies have “fallen 20-30%” meantime from the record levels of 2011, says Bloomberg, quoting a presentation by refiner Johnson Matthey at yesterday’s Silver Industry Conference in Washington.

Silver prices today touched $22.80 per ounce for the third time this week, moving 4.0% from last Friday’s close.

Adrian Ash, Guest Contributor to MiningFeeds.com 

About the author: Adrian Ash is head of research at BullionVault.

NEWS RELEASE.

October 23, 2013: Vancouver, BC – Balmoral Resources Ltd. (Stock Profile – TSXV:BAR & OTCQX:BALMF) has been advised by GTA Resources and Mining Inc. (“GTA”) (TSX VENTURE:GTA) that drill testing is set to resume on the Company’s Northshore Property located in the Hemlo-Schreiber Greenstone Belt in Ontario. The current program will consist of approximately 1,000 metres of drilling, targeting both the Afric Gold Zone and recently discovered high-grade gold mineralization located between the Afric and the former producing Northshore Gold Mine on the Property.

To-date, drilling by GTA has principally focused on the Afric Gold Zone, which has been outlined over an area of 500 x 350 metres and to a vertical depth of 350 metres, remaining open to depth and to the northeast. The most recently completed phase of drilling discovered a new, near surface high-grade zone of gold mineralization which returned an average grade of 5.23 g/t gold over 6.00 metres at a vertical depth of less than 15 metres, including 19.20 g/t gold over 1.50 metres (See NR13-16, July 18, 2013). This new discovery is currently interpreted to parallel the Northshore vein which was the focus of historic high-grade gold production on the Property.

Located immediately south of the town of Schreiber, Ontario, the Northshore Property is currently 100% owned by Balmoral and under option to GTA. GTA can earn an initial 51% interest in the Property under the terms of an option agreement between the companies (see News Release NR11-17; July 27, 2011). Balmoral currently controls 11.4% of the issued and outstanding common shares of GTA.

To learn more about Balmoral Resources – CLICK HERE.

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NEWS RELEASE.

October 21, 2013: Montreal, Quebec – Stornoway Diamond Corporation (Stock Profile – TSX:SWY) reports the results of a recent feasibility study on the viability of a Liquefied Natural Gas (“LNG”) fuelled power plant for the Renard Diamond Project. The study was authored by SNC-Lavalin Inc. and AMEC America Ltd. under the Renard Project EPCM joint venture, and demonstrates substantial benefits to the project in terms of annual operating cost and environmental emissions compared to the currently planned diesel gen-set option. Highlights of the study are as follows:

• Annual operating cost reductions of between $8 million and $10 million over the initial 11 year mine life, representing a life of mine operating cost saving of $89 million, or 6.6%.
• Incremental capital cost of only $2.6 million over the cost of diesel gen-sets, representing a net payback of 4 months.
• An estimated reduction in greenhouse gas emissions of 43%, with significant reductions in NO₂ and SO₂.
• Stable LNG local supply market based on existing commercial distribution network within Québec.

Matt Manson, President and CEO, commented: “Since the release of the Renard Diamond Project Feasibility Study in November 2011 and the subsequent Optimization Study in January 2013, we have been investigating more efficient alternatives for power supply at the project compared to the traditional diesel option contained within the current execution plan. A July 2012 Hydro-Québec feasibility study into a powerline for the project demonstrated only a marginal economic benefit of using grid power owing to the high cost for powerline construction. The LNG option now provides us with a much more attractive way forward, with off-the-shelf technology, a positive long-term supply outlook, a much smaller environmental footprint and immediate economic benefits for the project through substantially reduced operating costs. This option is made possible to us because, with an all-season road, we are able to receive regular shipments of liquefied gas from the existing commercial distribution network in Québec, without the need for expensive high-capacity on-site storage facilities. The LNG study has been completed in time to have it incorporated into the final project execution plan prior to the planned commencement of project construction in 2014.”

For more on this news – CLICK HERE.

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NEWS RELEASE.

October 17, 2013: Vancouver, BC – Balmoral Resources Ltd. (Stock Profile – TSXV:BAR & OTCQX:BALMF) announces that it has closed the first tranche of its previously announced (see NR13-22 and NR13-23 dated October 4 and 9, 2013 respectively) non-brokered private placement (“the Offering”). In conjunction with this first closing, the Company has issued 7,467,946 flow-through common shares (“FT Shares”) at a price of $0.475 per FT Share and 4,472,788 units (“Units”) at a price of $0.425 per Unit for aggregate gross proceeds of $5,448,209.

Each Unit consists of one non-flow-through common share in the capital of the Company and one half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each whole Warrant entitles the holder to purchase one additional common share in the capital of the Company (each, a “Common Share”) at any time up to October 17, 2014 at an exercise price of $0.75 per Common Share. A total of 2,236,394 Warrants were issued to purchasers in conjunction with today’s closing.

The net proceeds raised from the Offering will be used by the Company for further exploration of its Detour Gold Trend Project and other property assets located in the Province of Quebec, for general working capital and other corporate purposes.

To learn more about Balmoral Resources – CLICK HERE.

NEWS RELEASE.

October 10, 2013: Montreal, Quebec – Stornoway Diamond Corporation (Stock Profile – TSX:SWY) reports that owing to the expected completion of the Renard mine road significantly below budget, an agreement has been reached with the Quebec government to allow the residual amount of the financing facility established for the construction of the road to be utilized for the immediate construction of the Renard mine airport. The early construction of permanent airstrip facilities close to the Renard diamond project will better assist Stornoway Diamond Corp. in mitigating construction risk at the Renard diamond project during 2014 and 2015 and will create a new regional aerodrome, enhancing air transport in the Monts Otish region of Quebec.

Stornoway is now forecasting the cost to complete the Renard mine road at $70-million, approximately 10 per cent below budget. Stornoway and Quebec have agreed that the balance of funds within the base credit facility of $77-million may be drawn for the construction of the Renard mine airport. The airport’s capital cost estimate contained within the January, 2013, Renard optimization study was $15.5-million, including all site infrastructure and operating facilities. Given the competitive cost environment currently existing in Quebec for major capital projects, and the on-site presence of Stornoway’s contractors, fuel and equipment already mobilized for road construction, Stornoway has estimated that sufficient funds will be available within the road credit facility for the completion of all major civil works at the airport, well within budget and schedule. Work will commence immediately.

For more on the construction update – CLICK HERE.

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NEWS RELEASE.

October 9, 2013: Vancouver, BC – Balmoral Resources Ltd. (Stock Profile – TSXV:BAR & OTCQX:BALMF) announced that, due to significant demand, has increased the size of its non-brokered private placement of flow-through common shares and units, initially announced on Oct. 4, 2013, from $5-million in aggregate gross proceeds to $6-million in aggregate gross proceeds. As previously indicated, the offering comprises units, at an issue price of 42.5 cents per unit, and/or flow-through-shares, at an issue price of 47.5 cents per flow-through share. All other terms and conditions of the offering remain the same.

The offering is now fully allocated with gross proceeds of approximately $3.6-million to be raised from the placement of flow-through shares and approximately $2.4-million to be raised through the placement of units. Closing of the offering is anticipated to occur on or about Oct. 16, 2013.

The net proceeds raised from the offering will be used by the company for continued exploration of its Detour gold trend project and other property assets located in the province of Quebec, for general working capital and other corporate purposes.

To learn more about Balmoral Resources – CLICK HERE.

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Silver Bull Resources (NYSE:SVBL, TSX:SVB) reached an important milestone last week: it released the Preliminary Economic Assessment (PEA) for their 100% owned Sierra Mojada silver-zinc project in Coahuila, Mexico. On Thursday, I discussed the report with Silver Bull CEO Tim Barry. The full audio of our conversation is available above and below; but first, the backstory on Silver Bull.

Restructuring

In 2009, a cash-strapped NYSE listed Metalline Mining held the Sierra Mojada project. Metalline management had lost shareholders’ confidence, so it merged with Vancouver-based Dome Ventures. Brian Edgar, 63, a mining lawyer with close ties to the Lundin Group, was running Dome (Mr. Edgar was Lead Director of Red Back Mining when it sold to Kinross in 2010 for $9 billion). With Tim Barry, 37, exploration geologist, installed as CEO, and Edgar himself as executive chairman, the combined company renamed itself Silver Bull Resources, and partnered with JDS Engineering to re-establish and grow Sierra Mojada’s resource. Along the way, Silver Bull attracted the US’s largest silver miner, Couer d’Alene Mines Corp., as a major shareholder.

Silver Bull’s latest resource statement factors Sierra Mojada’s silver endowment at more than 163.6 million ounces – all in the Indicated category. This is at an average grade of 71.4 grams per tonne, using a 25-gram-per-metric ton cutoff. The silver zone is near-surface and contains some zinc, the statement reported. Directly beneath the silver zone is a large zinc deposit of more than 2.2 billion pounds. Sierra Mojada also contains lead and copper, and it is known as a Carbonate Replacement Deposit (CRD).

PEA

Silver Bull’s PEA will brief investors and potential suitors on the extent of the project’s economics. CEO Tim Barry commented, “The key points of the PEA are an after tax NPV of $463 million. The rate of return is 23.1%, CapEx is $297 million, which includes a 15% contingency, with a 2.9-year payback,” Barry explained on our phone call. “It’s an 18-year mine life, which will produce on average 5.5 million ounces of silver per year, with a very high-quality zinc concentrate of about 55,000 tonnes per year, which equates to about 65 million pounds. Cash costs per ounce, net of byproduct, are approximately $6.58 per ounce of silver produced.”

Silver Bull factored metals prices at $23.50 for silver and $.95 zinc for their PEA, closely following the Energy & Metals Consensus Forecast, but maintaining figures slightly more conservative than consensus.

“The silver price was $24 just two weeks ago,” Barry added. “Sierra Mojada’s not getting built tomorrow, and what we’re trying to do is forecast reasonable metal prices. When this does go into production, we do expect zinc and silver to be higher.”

Silver Bull’s name is a pretty accurate summation of its outlook for silver prices. Still, Mr. Barry painted an especially compelling picture for zinc, noting that several of the industry’s largest zinc mines will reach the end of their lives over the next two years. Smaller, inferior projects are scheduled to replace them. “When you’re losing three of your biggest mines, and there haven’t been any major zinc discoveries in a very long time, it doesn’t bode well for supply.”

“We recognize that people need to see how robust the project is at lower prices, and even at $16 silver, this project still makes money.”

Sensitivity table showing NPV and IRR at different silver prices. (Source: Company PEA News Release)

Our conversation turned to metallurgy. The company says a process called SART (Sulphidation, Acidification, Reduction and Thickening) — commonly used in oxide copper-gold projects — will allow for 75% silver recovery and 40-50% zinc recovery at Sierra Mojada. SART also regenerates 95% of the cyanide used in the metallurgical process, which will save the company considerably during production, as the chemical would otherwise be an ongoing consumable cost. SART is used at Newmont’s Yanacocha mine, Kinross’s Maricunga mine and others, but isn’t well-known to investors. “It’s a good part of my job to get out there and preach the virtues of the SART process,” Barry told me.

For more on SART, listen to the full audio recording.

“Top Quartile”

Sierra Mojada falls in the top quartile for cash costs per ounce and production volume, according to Barry. “[Silver producers] are going to have to replace [mined] ounces, and that’s where a project like Sierra Mojada has tremendous value — any company wants to buy a big asset and there are not many out there.”

Looking forward, Barry made clear his focus will be divided between permitting, feasibility and getting the story out to investors and potential acquirers. News flow will be focused on key permitting milestones, like their Environmental Impact Assessment ratification, of which Barry says they’re well under way. The company is also working to secure all surface rights to the project, and aims to complete a Pre-Feasibility Study in 2014.

The company has $6.5 million in cash, which, at the current burn rate (~$180,000 per month), will last into 2015. [Ed. note: Silver Bull was recently recognized in an article published by Sprott and others for prudent management of its treasury].

“I’m actually an exploration geologist by training and it’s not lost on me the wider exploration upside of this area. We will have a low-level program, mainly with leather on the ground. … I’d love nothing more than to have a Feasibility on Sierra Mojada under way and reporting the news of that and put a hole into a whole new area that’s never been drilled before. Our Palamos Negros target 9km up-strike from the deposit, and sitting in the same structure, has a lot of potential for the company.”

To learn more about the company click here: Silver Bull Resources.

NEWS RELEASE.

October 4, 2013: Vancouver, BC – Balmoral Resources Ltd. (Stock Profile – TSXV:BAR & OTCQX:BALMF) announced a non-brokered private placement of flow-through common shares (“Flow-Through Shares”) and units (“Units”, and together with the Flow-Through Shares, the “Offered Securities”) to eligible investors to raise aggregate gross proceeds of up to $5,000,000 (the “Offering”).

The Offering will be comprised of Units at an issue price of $0.425 per Unit and/or Flow-Through-Shares at an issue price of $0.475 per Flow-Through Share, subject to a maximum of $3,000,000 in gross proceeds from the issuance of Flow-Through Shares.

Each Unit will consist of one non-flow-through common share in the capital of the Company (a “Common Share”) and one half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each whole Warrant shall entitle the holder thereof to purchase one additional Common Share for a period of 12 months following the closing date of the Offering (the “Closing Date”) at an exercise price of $0.75 per Common Share.

To learn more about Balmoral Resources – CLICK HERE.

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NEWS RELEASE.

October 2, 2013: Montreal, Quebec – Stornoway Diamond Corporation (Stock Profile – TSX:SWY) is pleased to announce that it has entered into an unsecured non-revolving bridge credit facility of up to $20 million with Ressources Québec, a subsidiary of Investissement Québec, Stornoway’s largest shareholder, through its indirect wholly-owned subsidiary Diaquem Inc. (the “Lender”). The proceeds of the facility will be used in connection with the development of the Renard Diamond Project and for general corporate purposes, including costs relating to Stornoway’s ongoing project financing activities.

Matt Manson, Stornoway’s President and CEO, stated: “This credit facility is intended to provide Stornoway with good funding flexibility as we pursue our project financing activities and begin the ramp-up to the capital programs anticipated at Renard in 2014 and 2015. We are particularly pleased to acknowledge the continued and constructive support of our major shareholder, Investissement Québec, in the development of this important new Québec mining project. With major regulatory authorizations in hand and the Renard Mine Road now open for construction traffic, Stornoway’s primary objective is the timely conclusion of our principal project financing arrangements.”

For more on Stornoway – CLICK HERE.

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