(MENAFN - ProactiveInvestors - Australia) Balamara Resources (ASX: BMB) has added another A300,000 to its cash reserves through a placement to sophisticated and professional investors, bringing the total raised to 800,000.
The company is allocating the funding to exploration programs at its wholly owned Monty Project zinc-silver project in Montenegro and the 85%-owned Bogdan copper-silver project in Poland.
Last week Balamara revealed it had raised 500,000, also from a placement to sophisticated and professional investors, to continue the development of its central European projects.
The company has now placed 7.3 million shares at 0.11 each to raise the funds.
Balamara currently has a strong cash position after recently raising nearly 3 million through a placement to major shareholder Ample Skill, which now holds a 19% stake in Balamara.
The company is now more than adequately funded to realise its goal of delivering two new JORC resource estimates by Christmas.
Balamara has an ongoing exploration program underway at its Monty Project, which has so far yielded excellent results.
Drilling at the project was continuous during the September quarter, with two rigs working double-shift to extend the high grade silver zone located 60 to 90 metres under the existing open pit at the Brskovo deposit.
To date, Balamara has been able to extend the initial 30 metre strike of this high grade silver zone to around 100 metres, and samples from the latest holes drilled are being assayed with a view to growing it further.
The commercial impact of this silver zone could be significant because this metal is likely to add further credits to the existing zinc, lead and copper already delineated within the ore body.
To build size and scale for ultimate total regional production, Balamara sought to add another project with similar characteristics to Monty " that is, low entry price, previous production, strong upside potential and the ability to fast-track the mine back into production.
In September, the company announced the acquisition of the Varesh Project through the award of a tender for a 25-year right to explore and mine two principal deposits, known as Veovace and Rupice, located approximately 30 kilometres north of Sarajevo in Bosnia.
These deposits have been mined previously and Balamara was able to secure over 10,000 metres of drilling information, which points to a polymetallic zinc-lead-copper-silver project similar in many respects to Monty, and which should ultimately rival Monty in size and scale.
Balamara has moved quickly to digitise all the existing drilling information to allow Golder Associates to produce an initial JORC resource report for the project. Balamara expects this initial JORC report in the December 2012 quarter.
As a result of the new holes drilled at Monty this year, Balamara is also targeting an upgraded JORC resource estimate on this project. This is also scheduled to be released during the December 2012 quarter.
Balamara is also planning to start a second phase exploration program near to the copper dominant zone at its Bogdan Project in Poland, as soon as necessary permits are in place.
The company completed its first stage drilling program during the September quarter.
Three diamond holes were drilled over a total strike length of 3.2 kilometres within the tenement, targeting evidence of the same Kupferschiefer mineralised system prevalent at the substantial KGHM Polska Miedz copper-silver operations located immediately next door.
Balamara successfully hit the Kupferschiefer in all three holes drilled, with two lead-silver dominant and the last hole drilled intersecting a copper-silver dominant zone.
As a result of locating this copper target, Balamara decided not to proceed with its planned fourth hole further to the east and has since submitted applications for new exploration permits to drill a further seven holes around the last hole drilled, targeting an initial JORC copper resource.
Permitting is expected to be complete towards the end of 2012.