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Balmoral Resources (BAR.T) is showing that mining exploration stocks can still deliver strong share price returns for shareholders even in the current market environment. A combination of exciting drill results and rising nickel prices has Balmoral stock up from 40 cents to $1.54 (a 4 bagger!) year to date. The company now has an approximately $160 million market capitalization.

[Note Lawrence Roulston's Resource Opportunities news letter covered Balmoral on January 14, 2014, when BAR shares were trading at $0.47. CEO.ca has recently partnered with Lawrence to build the next generation of his newsletter and you should subscribe ($299/year here)]

Why is Balmoral one of the top performing stocks on the TSX this year?

  • Management - Balmoral is led by CEO Darin Wagner who is building an impressive track record in the mining space. His last company West Timmins Mining was sold to Lake Shore Gold (LSG.T) in 2009.
  • Discoveries - Balmoral is working on two exploration projects that are generating excitement in the market. The main driver behind the share price move has been the brand new discovery and rapidly expanding Grasset Ni-Cu-PGM project in Quebec. This is one of few new quality nickel discoveries, which has been one of the best performing commodities in 2014. This new discovery is hosted by a 16 km long northwest-trending ultramafic intrusion on 100% owned Grasset and Fenelon properties. So far the mineralization is open along strike and at depth. The Martiniere gold project, also in Quebec, is in the exploration/drilling phase and looks to be a considerable high-grade gold project. The 2014 program at Martiniere is focused on drilling at the Bug Lake zone. The Bug Lake zone has returned the highest gold intersection ever (1138 g/t over 4.87m) in the Detour Gold trend which is a prolific gold belt in the Abitibi region of Quebec.
  • Cash position - A strong working capital position of $9.5 million will see work at both projects continue.

Drill results and assays released this morning demonstrate the Grasset project continues to expand.

Highlights include:

  • Hole GR-14-44 - A 44.87 metre intercept grading 1.53% nickel, 0.16% copper, 0.37 g/t platinum and 0.86 g/t palladium.
  • Hole GR-14-47 - A 49.25 metres grading 1.28% nickel, 0.13% copper, 0.31 g/t platinum and 0.76 g/t palladium.
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Wagner

"Today's results demonstrate a rapid expansion of the Horizon 3 discovery both along strike and to depth, increasing our confidence in the potential of both the Horizon 3 discovery and the Grasset ultramafic complex as a whole," commented Darin Wagner, president and chief executive officer of Balmoral. "Ongoing drilling has continued to intersect net-textured-style sulphide mineralization along the projection of Horizon 3 northwest of and beneath the holes reported today. We are also encouraged to see the development of massive sulphide mineralization, both at depth and to the northwest, in a series of pending holes."

Here's the news release: Balmoral Intersects 44.97 Metres Grading 1.53% Ni, 0.16% Cu, 0.37 g/t Pt And 0.86 g/t Pd; Continues Expansion of Grasset Discovery

The bottom line is that Balmoral has excellent management, two promising discoveries, and is well funded. However with a rising stock price comes rising expectations. The company will need to continue to deliver with the drill bit.

Always do your own due diligence.