Bogdan (Poland)

Bogdan Project (85%)
Highly Prospective Base Metals Exploration Project in Poland

Located in the Upper Silesia region of South-Western Poland, close to the town of Lubin.  Bogdan is a tenement of approximately 42 square kilometers bordering the significant area of established copper/silver mines owned and operated by KGHM Polska Miedz, one of the largest copper producers in Europe.

Balamara acquired an 85% ownership in “Polmetal”, a local Polish company holding the Bogdan tenement. The acquisition occurred in September 2011 with acquisition costs totalling $1.5 million, across a 3 year period.  Over 75% of this cost will be spent in either developing the project in terms of exploration costs, or payable at a later stage at Balamara’s discretion, thus making Bogdan a low entry cost asset with significant upside potential, two of the main criteria chosen by Balamara in assessing new resource projects.

Historically this area sits in a region that has produced over 20 million tonnes of copper over the past 40 years, most of it produced by KGHM.  The area is defined by a large fault system that runs south-east and a vast tabular mineralised zone is associated with this fault, covering an area of some 200-300 square kilometres.  KGHM have developed a mature, end-to-end mining and smelting operation in this region since the 1960’s that has built it into one of the largest listed companies on the Warsaw Stock Exchange.  In 2010 KGHM produced over 500,000 tonnes of copper.

Current Status

Balamara is looking to develop the Bogdan concession as soon as possible and an initial three holes deep exploration drilling programme has been developed.

On the 26th of March 2012, Balamara announced that a maiden drilling program commenced at the Bogdan Copper Exploration Project in south-west Poland. The diamond drilling programme will provide the first definitive test of the potential of the 42sq km Bogdan Project to host extensions of the very large mineralised system at the neighbouring complex of mines and associated infrastructure owned and operated by KGHM Polska Miedz S.A. (“KGHM”).

On the 26th of April 2012, we announced that the first hole drilled at the Bogdan Copper Project in Poland has reurned visible evidence of copper mineralisation. The visible analysis suggests the copper exists as fine sulphode minerals, including chalcopyrite, chalcocite and covellite. The result is considered particularly significant because it suggests that the world-class Zechstien Formation, which hosts the extensive Kupferschiefer mineralised system at the neighbouring complex of mines owned and operated by KGHM Polska Miedz SA (“KGHM”), may extend into Bogdan. Samples from the first hole have already been delivered to laboratories in Poland for assaying and it is expected that the results will be available within approximately four weeks. The company will immediately start work on the second hole (“B2″) which sits between hole number one and the existing KGHM, which produced over 550 000 tonnes of copper and over 1 450 tonnes of silver in 2011, operating mine near to Lubin.

It is the intention of Balamara to devote significant resources to Bogdan over the next year if mineralisation similar to KGHM is located in the concession.  Balamara is aiming for Bogdan to become one of the most valuable assets in its portfolio. Our current drilling program is seeking to identify the potential for the same ore body to extend all the way through the Bogdan tenement along the same feeder fault system. Locating copper mineralisation at hole number one is the first positive indication of this extension.