The Perlati licence is one of Balkan’s two priority projects
Balkan Resources holds a 100‑percent interest in the 290‑hectare Perlati
project in northern Albania. The property contains the previously identified
Perlati copper deposit, a portion of which saw historical mining. The deposit
contains a historic, non‑NI 43‑101‑compliant mineral resource of just under
three million tonnes, averaging 2.45 percent copper, after accounting for
probable depletion while the mine was in production.
A second priority project offers added potential
The Devolli project in southeastern Albania is another advanced project
deemed a priority by Balkan Resources. The project is a joint venture between
Balkan and European Nickel plc that includes the Kokogllave, Devolli and
Zemblak exploration areas, which encompass 5,100 hectares of land. The
project contains a nickel laterite deposit that has seen 136,800m of historic
drilling, resulting in a historic resource potential in excess of one hundred
million tonnes, averaging 1.21 percent nickel.
Balkan is adding to existing data at Perlati with a new drill programme
The company commenced drilling on the Perlati deposit in 2007 and eighteen
holes have been completed to date. Balkan proposed a second phase of
drilling that would allow the company to upgrade the historic calculations to
a NI 43‑101‑compliant indicated and inferred resource. As well, the company
intends to expand the known mineralised zone, which remains open, and to
test new targets on the property.
Modern exploration techniques and assaying could expand the potential of Perlati
The historic assays concentrated on copper, and tests for precious metals and
zinc were spotty at best. Tirex Resources is in the midst of a multimillion‑dollar
exploration programme on its Mirdita property, which surrounds Perlati, and its
assays show significant zinc, gold and silver values.
Balkan is conducting advanced exploration on the Devolli Project
Balkan Resources has commenced a series of confirmation drill holes on
the Kokogllave property this year and assays from the first tests are positive.
European Nickel completed 9,257 metres of diamond drilling to complete their
JORC-compliant report on the Devolli portion of the project. The company has
embarked on a prefeasibility study that includes completing 44,000 metres of
drilling, which should be sufficient to upgrade the historic data to NI 43-101
standards. Balkan plans to employ European Nickel’s patented heap leach
technology for the Devolli Project which has been successfully implemented
on the Caldeg nickel laterite deposit in Turkey.
Our assessment yields a core base-case valuation of C$0.29
We assess Balkan Resources’ current value at C$0.29 per share, with significant
potential for appreciation with exploration success. Continued development
suggests valuations as high as C$1.16 per share in the post‑ermitting
environment under more optimistic scenarios.
