Terra Balcanica Resources Corp. announced it had intersected 505.3 grams per tonne silver equivalent from 43 meters deep at the fourth drill hole (CMVDD004) at Cumavici Ridge within the project. Read to learn the full results, what technical analyst Clive Maund has to say about the company, and upcoming catalysts for Terra in 2023.
Canadian exploration company Terra Balcanica Resources Corp. is expanding its flagship Viogor-Zanik mining project in Bosnia with the announcement of positive drill results and a new mineralization discovery within the project.
The company announced today that it intersected 505.3 grams per tonne silver equivalent (505.3 g/t Ageq) from 43 meters deep at the fourth drill hole (CMVDD004) at Cumavici Ridge within the project, including 3,075.4 g/t Ageq over 1.7 meters from surface. Terra so far has drilled five holes in Cumavici Ridge, all of which produced high-grade drill results. In addition, the company discovered the new Josheva target, which is 2.3km southeast of the Cumavici Ridge. The first drill in the new mineralized spot yielded 119.7 g/t Ageq over 6 meters from 53 meters of depth. Both the positive drill results and new discovery confirms that the entire 7.2km stretch of Cumavici corridor has potential for more segments of polymetallic veins, high-grade mineralization, and further drill testing.
Terra Balcanica is a polymetallic resources exploration company based in Vancouver, BC, Canada, targeting large-scale mineral systems in the Balkans of southeastern Europe. The company has a 90% stake in its main Viogor-Zanik project in eastern Bosnia and fully-owned mineral exploration licenses in Kaludra and Ceovishte in Serbia. The license sites in Serbia are drill-ready and present bonanza-grade Pb-Zn surface geochemistry and multi-ounce gold assays from grab samples.
Catalyst: 2023 Drilling Program Along Cumavici corridor
After the drilling of five holes, Terra Balcanica will start Phase 2 of its drilling program along the high-grade Cumavici corridor, from the northwest to southeast and down dip to southwest areas. The company said the Cumavici Ridge offers a robust target for expansion of mineralization, and given the shallow nature of its high-grade veins, drilling can quickly define strike length utilizing a 40-meter regular step out. As mineralization is viewed to be dipping shallowly to the southwest, the 2023 drilling program will prioritize this area.
“The stage is now set for the Phase 2 drill program of this shallow polymetallic vein that will aim to add onto these exceptional grades. Most exciting is that the highest metal concentrations have come from the northwesterly segment of the system which is the direction where we intend to extend our drill fence in 2023,” Terra Balcanica CEO Dr. Aleksandar Mišković said.
A month ago, Terra Balcanica said drilling for Phase 2 will begin sometime in April this year. The 7,000-meter diamond core drilling program in the Viogor Zanik project is broken down by target:
4,000m at the Cumavici Ag-Zn-Pb-Au-Sb target – mineral resource definition
2,000m at the Brezani Au skarn/porphyry target – preliminary target definition
1,000m at the Olovine Mo-Cu porphyry target – preliminary target definition
By mid-March, the company will also give more details surrounding its planned venture into the regional SE European battery metal exploration sector.
Silver to Follow Rising Industrial Use, Increased Demand for Smartphones
Nicole Willing of Capital.com said silver is seen to benefit from increasing industrial demand and use, as well as the moderate growth in demand for smartphones, therefore, boosting silver demand.
Global demand for solar photovoltaic (PV) panels is also seen to increase in the next few years as the European Union pushes for more rooftop solar energy in a bid to “become independent of Russian fossil fuels as soon as possible.” Demand for silver in the manufacturing of electric vehicles is also seen to rise to 70 million oz by 2023, according to the Silver Institute.
Overall, analysts have mixed bullish to cautious outlooks on silver prices. World Bank and Trading Economics are seeing prices stay constant at US$20 to US$21 from 2023 to early 2024.
Other analysts are more bullish, with WalletInvestor forecasting silver to end 2023 at US$24.95 mark, US$29 by the end of 2025, and an average of US$33 in 2027. Gov Capital sees an average of US$24.28 by the end of 2023, US$36.5 by the end of 2024, US$53.84 by the end of 2025, and US$76.5 by the end of 2026.
Terra Balcanica has expansive mineralization targets and more potential bulk production as they explore targets in the Cumavici Ridge alone.
Despite the silver sector being hit by a dip in recent days, technical analyst Clive Maund retained his positive Buy stance toward the stock, saying that this is the opportunity to buy TERA at a good price. His positive outlook stemmed from the consecutive positive drilling results, confirming consistent high-grade polymetallic targets, as well as the bright drilling prospects this year.
He said the stock may have “broke down from its supposed uptrend” and completed a Cup and Handle base, but the drop is attributable to the sector and that strong volume indicators for the stock are bullish. He added that an upside may be seen once the stock pierced the CA$0.13 level. As of February 23, 2023, the stock is priced at CA$0.11.
Ownership and Share Structure
Half of the company’s stock is held by management, insiders, and directors, while the other half is held by retail investors. Among the top investors in management, CEO Dr. Aleksandar Mišković owns 11.7% of Terra’s stock, while Co-founder and Director Aleksandar Ilić has 11.5% interest.
Non-Executive Chairman Giulio Bonifacio has 3.99%, with 2.93 million shares, and Director Brandon Bonifacio M.Eng., MBA is at 2.29%, with 2.15 million shares. Terra Balcanica has a market cap of CA$6.67 million and 78.512 million outstanding shares.
The company has issued 5 million CA$0.15 warrants that will expire on October 15, 2025. It also issued two batches of options: 1) 6.395 million options priced CA$0.20, expiring on June 16, 2027, and 2) 250,000 options at CA$0.10, with a due date of October 12, 2024.
It trades in the 52-week range between CA$0.05 and CA$0.20. The company has CA$380,000 in the bank with a CA$40,000 monthly burn rate which includes CA$260/meter in drilling costs.
Source: Streetwise Reports