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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (19405)	5/12/2008 10:40:13 AM
From: LoneClone	Read Replies (1) \| Respond to of 195027

One Highly Mineralised Drill Sample Has Changed Everything For Belmore Resources By Alastair Ford minesite.com[tt_news]=45521&tx_ttnews[backPid]=755&cHash=76865727ac In this business one drill hole can change everything. For Belmore Resources, a company that has to date existed more on paper than in the physical world, hitting a high grade zinc-lead intersection on its Kilbricken property in County Clare in Ireland has been a revelation and a transformation. Not only will the company’s finance director Pat Mahony and key consultant John Colthurst be spending a bit more time on Belmore, now that they’ve got 10 metres at 13.84% zinc and 5.52% lead to tout around, but investor interest will more than likely pick up too. Pat Mahoney reckons that with a market capitalisation of around £1 million, Plus-traded Belmore is undervalued by a factor of several times. When he presents the deal that he’s sure to sign with one of the majors that are sniffing around Kilbrecken, we’ll know whether he’s right or not. One thing’s for sure, though: he’s got a big smile on his face right now. “The situation’s changed with this hole, and that’s reflected in the amount of interest we’re having. We’re talking to up to six companies. It’s now a question of the deal you get from them”, he says. One hole does not make a mine. On the other hand, it might yet make quite a deal. John Colthurst has worked on just about every famous zinc property in Ireland. “This is one of the best holes drilled in Ireland over the last ten years”, he enthuses quietly. “It’s generally similar to the mineralization at Lisheen and Galmoy, although it’s not dolomitised.” That may or may not make a difference, but Kilbrecken’s presence on the same stratigraphic horizon as the Anglo and the Lundin properties, means that there are plenty of parties out there interested in finding out more. Mr Colthurst wants to drill four more holes in a 50 metre square grid around the initial showing. At €27,000 per drill hole, it’s not cheap for a company like Belmore, especially as the mineralization is quite deep, and the object of the drilling would be to encounter the bottom of the reef horizon, as the first hole did. But paying for it is Mr Mahony’s department. “We will do a deal which will alleviate us of our need to raise capital”, he says. “We’d hope within six to eight weeks to have something concluded”. Belmore’s not going to give up operational control, though. Having Mr Colthurst run the drill campaign probably adds more value than any technical expertise a major could bring to the table at this stage. But what Belmore does need is some assistance with geotechnical and geophysical work. It would also be nice to get some more rigs on site, as the company still has drilling commitments on some of its other ground nearby. The immediate list of candidates for a possible farm-in are obvious: the regional players. But there may yet be other interest from outside. The way Mr Mahony tells it some of the interested parties are interested in finding out who the other interested parties are. He hasn’t yet taken a salary from Belmore, even though it’s been listed for more than three years now, but he’s beginning to have to work the phones in a serious way. John Colthurst hasn’t taken a salary either, but it’s not beyond the bounds of possibility that once new money comes in, he’ll take a bit of financial compensation for running the drill campaign. So what’s next? Obviously there’s plenty of interest in who comes into the project, but Mr Mahony is fairly deadpan about that. He likes being in a commanding position, and says frankly that “the biggest announcement is the one that’s out”. After 15 attempts, and a £475,000 exploration spend, Belmore hit mineralization. The results from that one hole are plenty enough to keep him happy for now, although there’s always the possibility that he’ll pick up more ground around Kilbricken just to tie up the loose ends.