Will 2019 Be a Breakout Year for Blina’s Share Price?

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Australian-based resource exploration company Blina Minerals NL [ASX:BDI] hasn’t seen much movement in its share price over the past five years.

In fact, BDI’s share price has pretty much flatlined since mid-2013, not once peaking beyond 0.3 cents. Blina currently trades at 0.1 cents per share.

The Australian exploration company is involved in gold and base metal exploration, holding mining tenement in Australia and Africa.

What’s in Blina’s pipeline?

Blina has undergone several initiatives over the past few years in order to diversify its holdings. Namely, land acquisitions in the high-grade cobalt producing district of La Cobaltera, Chile and the procurement of Madacu Resources Pty Ltd, and the right to farm at the Maintirano Copper Exploration Project in Madagascar.

Coming off a trading halt requested on Monday, BDI announced this morning it had acquired approximately 11% of the New Zealand-focused gold explorer, Condamine.

Condamine is an Australian public (but unlisted) company. It owns several highly prospective gold projects in New Zealand.

Known as the Condamine Projects, the company’s four key gold projects include Alexander River, Big River, Reefton South and Lyell.

In the announcement released this morning, Blina stated that the granted brownfield tenements are part of a well-known mining region with an extensive history of high-grade gold production. The combined historical production from the Condamine tenements is estimated to be 268,000 ounces of gold.

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What does this mean for Blina’s share price?

While it’s healthy for any company to want to expand and diversify its holdings, this morning’s announcement is unlikely to have an immediate effect on the company’s share price.

In what could be a compounding effect on Blina’s share price, the gold price has had a relatively sluggish start to 2019.

According to Bloomberg, this has been the worst January for gold since 2019. This is despite the backdrop of political and economic uncertainty.

See Gold’s first half January performance:

Source: Bloomberg

Blina’s investment in Condamine may catch the attention of more investors than previous ventures. While it is still very much a ‘wait and see’ situation at the moment, Condamine’s projects are located within some of New Zealand’s highest gold producing areas and have serious profit-making potential.

It is worth noting that these projects are still in their infancy and it may be some time yet before they begin to yield pay dirt.


Ryan Clarkson-Ledward,
For Money Morning

PS: Interested in mining stocks leading into 2019? Markets & Money resources analyst Jason Stevenson believes that your best opportunities lie in smaller, more speculative stocks that aren’t restricted to iron ore. The kind that could see massive share price moves from a single positive drill-hole result. For 10 of his favourite mining stocks on the Aussie market this year, download his free report ‘Top 10 Mining Stocks’ today.

About Ryan Clarkson-Ledward

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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