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Afric deposit expands as JV future in question

Joint venture partners Balmoral Resources (TSX: BAR) and GTA Resources and Mining have reported intersecting 124.5m at 1.05g/t gold at the Afric gold deposit at their Northshore project.
Afric deposit expands as JV future in question Afric deposit expands as JV future in question Afric deposit expands as JV future in question Afric deposit expands as JV future in question Afric deposit expands as JV future in question

A sample from the Northshore JV

Staff reporter

However future work on the Ontario property will be reviewed by the joint venture following completion of the sale of GTA's mineral property assets, which remains pending.

GTA currently has a 54% interest in Northshore and is the project operator.

GTA shareholders last month approved the sale of its mining assets to CBLT Inc (TSXV: CBLT) and to voluntarily delist from the TSX Venture Exchange, along with other conditions to meet a C$425,000 loan agreement struck with CBLT in October.

At the time, GTA president and CEO Peter Clausi said the decision was not made lightly and he believed GTA's shareholders would be "better served in a growth industry other than junior exploration" while still having exposure to the assets through the to-be-dividended shares of CBLT.

Clausi is also CEO of CBLT, saying in October "the brutal junior mining market has created opportunities for us".

The two companies also share a CFO and director in Brian Crawford.

Meanwhile, Balmoral said the above-mentioned intercept had a high-grade core, including 1m at 56.5g/t, and extended Afric's high-grade core by about 100 vertical metres in the area tested.

Northshore has an indicated 12.36 million tonne resource at 0.99g/t for 391,000 ounces and an inferred 29.58Mt at 0.87g/t for 824,000oz.

Shares in Balmoral, which is also exploring its Grasset nickel-copper-cobalt-PGE deposit in Quebec, closed unchanged yesterday near a 52-week low of C12c at 15.5c.

At that price it is capitalised at $21.5 million.

GTA's TSXV shares have been delisted, while CBLT shares closed 50% higher yesterday at 4.5c.