SOURCE: Balmoral Resources Ltd.

Balmoral Resources

May 11, 2016 07:30 ET

Balmoral Intersects 14.08 g/t Gold Over 12.56 Metres (incl. 199.00 g/t Gold Over 0.85 Metres), Southern Bug Lake Gold Trend

VANCOUVER, BC--(Marketwired - May 11, 2016) - Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSX: BAR) (OTCQX: BALMF) 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.

"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

Hole   Northing   Easting   Dip   From   To   Interval*   Gold   Zone
Number               (Metres)   (Metres)   (Metres)   (g/t)    
MDE-16-203   2+50S   1+90W   -50   139.01   150.78   11.77   0.02   HW Porphyry
                174.89   179.36   4.47   11.55   Hanging Wall
including               177.29   177.93   0.64   72.40   "
                218.00   244.44   26.44   0.75   Upper Bug Lk
including               243.08   244.44   1.36   3.10   "
                272.70   274.08   1.38   0.46   Lower Bug Lk
MDE-16-204   2+75S   3+25W   -50   59.37   74.79   15.42   3.31   Upper Bug Lk
including               61.00   66.30   5.30   6.08   "
and               72.78   73.72   0.94   5.06   "
MDE-16-205   2+75S   2+10W   -50   99.54   117.02   17.48   1.54   Hanging Wall2
including               111.96   115.74   3.78   6.32   "
                165.08   172.09   7.01   3.24   HW Porphyry
including               166.14   166.94   0.80   25.30   "
                192.92   205.48   12.56   14.08   Upper Bug Lk
including               202.19   204.50   2.31   75.44   "
which includes               202.88   203.73   0.85   199.00   "
                320.52   322.70   2.18   1.07    

* 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

Hole   North   West   From   To   Interval*   Gold
Number           (Metres)   (Metres)   (Metres)   g/t
Grasset HW Gold Zone
GR-15-89**   2+60 S   2+10 E   149.20   153.00   3.80   10.04
GR-16-100   2+60 S   2+10 E   148.43   155.11   6.68   0.22
GR-16-101   2+60 S   2+10 E   123.00   129.12   6.12   0.68
Exploration Series
GRX-16-23   4+30 N   21+50 E   301.26   305.31   4.05   0.37

* 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.

About Balmoral Resources Ltd. - www.balmoralresources.com

Balmoral is a well-funded, Canadian-based company actively delineating and expanding the high-grade Bug Lake Gold Trend on its wholly owned, 700 square kilometre Detour Trend Project in Quebec, Canada. The Detour Trend Project also hosts Balmoral's Grasset Ni-Cu-Co-PGE deposit and a number of other nearby nickel sulphide occurrences. Employing an award winning exploration team, Balmoral has a philosophy of creating value through the drill bit. By focusing our efforts in proven productive precious/base metal belts in one of the world's pre-eminent mining jurisdictions, Balmoral is following an established formula with a goal of maximizing shareholder value through discovery and definition of high-grade, Canadian gold and base metal assets.

On behalf of the board of directors of
BALMORAL RESOURCES LTD.

"Darin Wagner"

President and CEO

This press release contains forward-looking statements and forward-looking information (collectively, "forward looking statements") within the meaning of applicable Canadian and United States securities laws. All statements, other than statements of historical fact, included herein, including statements regarding the anticipated content, commencement, duration and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the timing of the receipt of assay results, and business and financing plans and trends, the potentially open nature of the mineralized zones on the property and the potential for future discoveries of additional mineralization on the property are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions or are those which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, there can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results may differ materially from those in forward-looking statements. Important factors that could cause actual events and results to differ materially from the Company's expectations include those related to weather, equipment and staff availability; performance of third parties; risks related to the exploration stage of the Company's projects; market fluctuations in prices for securities of exploration stage companies and in commodity prices; and uncertainties about the availability of additional financing; risks related to the Company's ability to identify one or more economic deposits on the properties, and variations in the nature, quality and quantity of any mineral deposits that may be located on the properties; risks related to the Company's ability to obtain any necessary permits, consents or authorizations required for its activities on the properties; and risks related to the Company's ability to produce minerals from the properties successfully or profitably . Trading in the securities of the Company should be considered highly speculative. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the latest technical reports filed with respect to the Company's mineral properties.

This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties and any production therefrom or economics with respect thereto, are not indicative of mineral deposits on the Company's properties or of the potential production from, or cost or economics of, any future mining of, or production from, and of the Company's properties.

This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.

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Contact Information

  • For further information contact:
    John Foulkes
    Vice-President, Corporate Development
    Tel: (604) 638-5815 / Toll Free: (877) 838-3664
    E-mail: jfoulkes@balmoralresources.com