Mr. Darin Wagner reports
BALMORAL CONTINUES TO EXPAND BUG GOLD DEPOSIT AND NEARBY HORSEFLY ZONE DOWN PLUNGE
Balmoral Resources Ltd.'s initial results from the winter 2018 drill program on the company's Martiniere property in Quebec have successful extended down plunge both the South zone of the Bug gold deposit and the proximal, near-surface Horsefly gold zone.
Drill holes MDE-18-324 and 325 both intersected broad gold mineralized intercepts in the footwall (Lower) portion of the South zone at vertical depths of approximately 375 and 410 metres respectively, below the limits of the initial resource estimate released on March 27, 2018 (see NR18-03). High-grade vein-style gold mineralization was intersected in the hangingwall to the South zone in multiple holes including intercepts of:
87.00 g/t gold over 0.73 metre in hole MDE-18-324; 33.10 g/t gold over 0.98 metre in hole MDE-18-325 -- the deepest hole on this drill section; 30.80 g/t gold over 1.28 metresalso in MDE-18-325; 8.97 g/t gold over 0.79 metre in hole MDE-18-322.
"The re-emergence of high-grade vein-style mineralization in the hangingwall region of the South zone as we proceed to depth is encouraging, as is the continuity of the South and Horsefly zones outside the recently defined resource shells," said Darin Wagner, president and chief executive officer of Balmoral Resources.
HoleFrom To Interval*Gold No.(metres) (metres) (metres)(g/t)ZoneHorsefly zoneMDE-18-320207.52 228.2720.75 0.53 Horseflyincluding 209.22 209.87 0.65 5.05** Horseflyand 225.00 225.64 0.64 2.78 HorseflyMDE-18-321195.66 206.8711.21 0.31 PeripheralBug South depositMDE-18-322181.05 190.97 9.92 0.74Newincluding 182.23 183.87 1.64 2.85New252.61 253.40 0.79 8.97 HW306.02 306.84 0.82 2.21Lower BugMDE-18-323No significant results MDE-18-324499.95 500.68 0.7387.00 HW520.28 531.0910.81 2.53Lower Bugincluding 520.28 521.94 1.6610.31Lower Bugand 530.06 531.09 1.03 7.91Lower Bug567.14 568.38 1.24 2.74 FWMDE-18-325 18.9822.78 3.80 0.45New479.68 480.96 1.2830.80 HW491.49 492.47 0.9833.10 HW544.03 549.05 5.02 3.08Lower Bugincluding 544.99 545.91 0.92 6.47Lower Bug576.30 586.22 9.92 1.02 FW*Reported drill intercepts are not true widths. Intercepts are estimatedto be approximately 65 to 78 per cent of true thickness based on modelresults from the initial resource estimate completed March 27, 2018. All values presented uncapped.** Visible gold mineralization noted.
A total of 15 drill holes, totalling 4,100 metres, were completed during the winter drill program. The company has also received results from six exploration holes, three drilled up to 3.0 kilometres east of the Horsefly discovery, two drilled north of the Martiniere West zone and one hole drilled approximately 1.2 km southwest of the Martiniere West zone. Local zones of anomalous gold mineralization were encountered in several of these holes, however none are currently slated for follow-up testing.
Final results remain pending from three holes drilled in the Lac du Doigt area, two kilometres northwest of the Martiniere West and Bug gold deposits, and will be released along with results from the recently completed geophysical program in the Lac du Doigt-LAM area as they are received and the interpretation of the geophysical results completed.
Company update
Results from geophysical programs completed on the company's Martiniere (Lac du Doigt -- LAM grid), Highway 810 and N2 gold properties are currently being analyzed and will be reported on separately along with the future exploration plans for the latter two properties.
With respect to Martiniere, while the company will continue the exploration of the broader Martiniere gold system, there are currently no plans for additional mid-level delineation drilling on either the Martiniere West or Bug gold deposits during 2018. While the company continues to believe that there remains significant resource growth potential it will pursue third party and other strategic options to advance the further definition and delineation of the Martiniere West and Bug gold deposits.
In the near term the company will return to an exploration focus, evaluating the potential of several near-surface gold discoveries on the Martiniere, Grasset and Detour East properties as well as gold discovery opportunities on all of the properties within its portfolio.
In addition, with the nickel price having strengthened considerably over the last several months to over $6 (U.S.) per pound, and the prices of copper, cobalt and palladium as well as the Canadian dollar exchange rate all currently exceeding the assumptions used in the company's 2016 resource estimate for the Grasset nickel-copper-cobalt-platinum-group-element deposit, planning for a resumption of exploration work within the Grasset ultramafic complex during the summer/fall of 2018 is now under way.
The company is also reviewing a variety of outside opportunities and strategic options. Balmoral remains in a strong financial position with working capital of approximately $7.0-million.
Quality control
Darin Wagner (PGeo -- British Columbia, Ontario, res. permit Quebec), president and chief executive officer of the company, is the non-independent qualified person for the technical disclosure contained in this news release. Mr. Wagner has supervised the work programs on the Martiniere property since inception, visited the property on multiple occasions, discussed and reviewed the results with senior on-site geological staff, reviewed the data from the drill core for the holes contained in today's release, and reviewed the available analytical and quality control results.
Balmoral has implemented a quality control program for all of its drill programs, to ensure best practice in the sampling and analysis of the drill core, which includes the insertion of blind blanks, duplicates and certified standards into sample stream. NQ-sized drill core is saw cut with half of the drill core sampled at intervals based on geological criteria including lithology, visual mineralization and alteration. The remaining half of the core is stored on site at the company's Martiniere field camp in central Quebec. Drill core samples are transported in sealed bags to ALS Minerals' Val d'Or, Que., analytical facilities. Gold analyses are obtained via industry standard fire assay with atomic absorption finish using 30-gram aliquots. For samples returning greater than 5.00 grams per tonne gold follow-up fire assay analysis with a gravimetric finish is completed. The company has also requested that any samples returning greater than 10.00 g/t gold undergo screen metallic fire assay. Following receipt of assays, visual analysis of mineralized intercepts is conducted and additional analysis may be requested. ALS Minerals is ISO 9001:2008 certified and the Val d'Or facilities are ISO 17025 certified for gold analysis.
About Balmoral Resources Ltd.
Balmoral is a well-financed, Canadian-based exploration company. Balmoral's 1,000-square-kilometre Detour gold trend project is home to the resource stage Bug and Martiniere West gold and Grasset Ni-Cu-Co-PGE deposits, and several other gold and base metal discoveries.
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