May 12 2016
Balmoral Resources Ltd. ("Balmoral" or the "Company") today reported the initial results from the winter 2016 drill program on the Company's Detour Trend Project in Quebec. Results were highlighted by intercepts of 14.08 g/t gold over 12.56 metres including 199.00 g/t gold over 0.85 metres, 11.55 g/t gold over 4.47 metres and 3.31 g/t gold over 15.42 metres, including a higher grade core of 6.08 g/t over 5.30 metres, from the first three holes testing the southern portion of the Bug Lake Gold Trend on the Company's Martiniere Property.
Fig 1-Bug Lake Plan Map South
"This is a strong first set of results from our winter drilling along the southern portion of the Bug Lake Gold Trend. All three holes confirm and expand on a series of high-grade gold intercepts from our initial, widely spaced drilling along this portion of the Trend" said Darin Wagner, President and CEO of Balmoral. "Continued expansion and delineation work along the Bug Lake Gold Trend, and throughout the broader Martiniere gold system, will be our primary focus throughout 2016."
Martiniere Property
The first three holes of the winter drill program at Martiniere successfully extend and supports the continuity of the high-grade gold zones encountered during initial testing of the southern segment of the Bug Lake Gold Trend completed in 2014. Reported holes MDE-16-203 and MDE-16-204 were both drilled on the same section line (see Table 1 below and Figures 1 and 2). MDE-16-204 was drilled shallow, intersecting the Upper Bug Lake Zone which returned an intercept of 3.31 g/t gold over 15.42 metres, including a higher grade core of 6.08 g/t gold over 5.30 metres, at a vertical depth of only 45 metres below surface.
Hole MDE-16-203 was drilled approximately 135 metres down-dip and intersected three zones of anomalous gold mineralization, including a Hanging Wall Zone intercept of 11.55 g/t gold over 4.47 metres.
Hole MDE-16-205 (Figure 3) was designed to test multiple high-grade gold targets -- the Hanging Wall 2, Hanging Wall Porphyry (which is interpreted to merge with the Hanging Wall Zone in this area) and Upper Bug Lake Zones -- to determine their continuity. It succeeded on all three fronts including returning one of the strongest intercepts to date from the southern portion of the Bug Lake Gold Trend. All mineralized zones remain open to depth.
Today's results supports and expand on a series of high-grade gold intercepts, including 12.05 g/t gold over 7.99 metres, 9.35 g/t gold over 5.17 metres, 4.32 g/t gold over 5.11 metres, 10.32 over 2.66 metres and 15.55 g/t over 1.01 metres, from 2014 drilling of the Upper Bug Lake and Hanging Wall Zones along this segment of the southern Bug Lake Gold Trend (see NR 14-10; May 12, 2014 and NR 14-24; Oct. 8, 2014).
Table 1: Southern Bug Lake Gold Trend, Martiniere Property
* Reported drill intercepts are not true widths. At this time there is insufficient data with respect to the shape of the mineralization to calculate true orientations in space. All values presented uncapped.
The winter drill program has been completed and all samples have been submitted for analysis. Results from eight additional holes drilled along the Bug Lake Gold Trend remain pending. The fully funded, summer-fall $4.0 million, 20,000+ metre diamond drill program is anticipated to commence within the next 30-40 days.
Grasset Property
Winter drilling on the Grasset Property tested two gold targets. Holes GR-16-100 and GR-16-101 were drilled to confirm the presence of a new gold bearing shear zone in the hanging wall to the Grasset Nickel Deposit (See Figures 4 and 5). Both holes successfully intersected a sequence of strongly deformed, sericite altered and variably quartz-carbonate veined volcanic rocks returning anomalous gold mineralization over greater than 6.0 metre widths. These two holes were drilled lateral to, and above, discovery hole GR-15-89 which returned 10.04 g/t gold over 3.80 metres from the same target (see NR15-12, Sept.8, 2015).
"We are also pleased to see additional evidence of gold mineralization on the Grasset Property, which adds to a growing list of gold opportunities for the Company throughout the 700+ square kilometre Detour Trend Project" said Mr. Wagner.
Table 2: Grasset Property Gold Targets
* Reported drill intercepts are not true widths. At this time there is insufficient data with respect to the shape of the mineralization to calculate true orientations in space.
** Previously reported - see NR15-12, Sept.8 2015)
Hole GRX-16-23 was drilled 1,700 metres east of the Grasset Nickel Deposit, along the projected strike of the Sunday Lake Deformation Zone ("SLDZ"). The multi-million ounce Detour Gold Deposit is hosted within the SLDZ 80 kilometres to the west in the province of Ontario. The hole successfully intersected the northern contact of the SLDZ returning anomalous gold mineralization within a deformed porphyry intrusion. There is no drill testing of the SLDZ for several kilometres to the east within the confines of the Grasset Property.
Quality Control
Mr. Darin Wagner (P.Geo.), President and CEO 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 and Grasset Properties, visited the properties on multiple occasions, examined the drill core and/or photographs from the holes summarized in this release, discussed, reviewed the results with senior on-site geological staff 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, Quebec analytical facilities. Gold analyses are obtained via industry standard fire assay with atomic absorption finish using 30 g aliquots. For samples returning greater than 5.00 g/t 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. In addition all results are subjected to independent, third party QA/QC review prior to publication.