Balmoral Resources (TSX: BAR) is bolstering its renewed nickel focus with plans to acquire the Gargoyle nickel sulphide project in Ontario, which it says has similarities to the prolific Kambalda nickel camp in Western Australia.
Balmoral last week said drilling at its Detour Gold Trend project had begun but the biggest component of its summer-fall programme would be expansion drilling at its Grasset nickel-copper-cobalt-PGE deposit, which had been put on hold in 2015 due to low metal prices.
The LME spot nickel price had slumped below US$7,500/t in early 2016 but last traded above $13,338/t, a similar level to September 2015.
“The Gargoyle property acquisition supplements our renewed focus on nickel exploration and nicely complements the recently announced drill programme at Grasset,” president and CEO Darin Wagner said yesterday.
“New, road accessible nickel sulphide discoveries in places like Ontario are very infrequent and we are excited by the opportunity this acquisition represents for the company and its shareholders.”
Balmoral can acquire Gargoyle from Karl Bjorkman for C$140,000 and 390,000 shares in staged payments plus a 2% NSR royalty.