SOURCE: Balmoral Resources Ltd.

Balmoral Resources

October 17, 2016 07:30 ET

Balmoral Intersects 4.51 g/t Gold Over 26.90 Metres in New Discovery Adjacent to Bug South Deposit, Martiniere Property, Quebec

VANCOUVER, BC--(Marketwired - October 17, 2016) - Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSX: BAR) (OTCQX: BALMF) today reported additional results from the summer/fall drill program on its wholly-owned Martiniere Property in Quebec. Results were highlighted by the discovery of a new high-grade gold bearing vein zone in the hanging wall to the Bug South gold deposit. This new discovery was intersected in hole MDE-16-121, approximately 90 metres above the Upper Bug Zone of the Bug South deposit. It returned 4.51 g/t gold over 26.90 metres, including separate intercepts of 10.89 g/t gold over 6.80 metres and 15.89 g/t gold over 2.80 metres.

In total results from eight holes were reported, five from the Bug South deposit area (MDE-16-221, 222, 223, 226 and 227) and three from the Bug Southeast Zone and extension. The gold mineralized intercepts in holes MDE-16-224 and MDE-16-228 (see Figure 1) extend the strike length of the gold mineralized system along the Bug Lake Gold Trend by approximately 200 metres with it remaining open to the southeast, and to depth on all sections, for further expansion.

Drill hole MDE-16-225, tested the Bug Southeast Zone and returned 1.74 g/t gold over 17.16 metres, including two higher grade sub-intervals of 6.00 g/t gold over 1.72 metres and 7.40 g/t gold over 1.71 metres. MDE-16-225 tested beneath hole MDE-16-208, drilled during the winter program, which returned 1.23 g/t gold over 25.02 metres, including two similar higher grade sub-intervals of 8.60 g/t gold over 1.45 metres and 12.00 g/t gold over 1.00 metre (see NR16-10; June 8, 2016).

Results from an additional 42 drill holes completed on the Martiniere Property during the summer/fall program remain pending, including numerous follow-up holes to the recently announced intercept of 115.45 metres grading 1.40 g/t gold (see NR16-19; Sept 7, 2016) from the Bug South deposit.

Hole Northing Easting Dip From To Interval* Gold Zone
Number       (Metres) (Metres) (Metres) (g/t)  
MDE-16-221 1+40S  2+10W  -48  62.00 68.65 6.65 1.56 Zinc
including       65.60 67.00 1.40 5.82 "
        110.90 137.80 26.90 4.51 New
including       112.20 115.00 2.80 15.89 "
and       122.20 129.00 6.80 10.89 "
including       125.90 129.00 3.10 22.64 "
        201.00 226.30 25.30 1.15 Upper   Bug
including       220.40 222.60 2.20 3.39 "
        252.30 268.00 15.70 1.07 Lower   Bug
including       257.30 257.90 0.60 11.20 "
and       267.00 268.00 1.00 4.54 "
MDE-16-222  4+00S 0+25W  -49  236.50 251.65 15.15 0.20 Zinc
        316.40 326.15 9.75 1.17 HWP
including       325.20 326.15 0.95 5.21 "
        332.65 339.65 7.00 0.69  
        397.05 409.20 12.15 2.02 Lower   Bug?
including       405.50 409.20 3.70 3.44 "
MDE-16-223 1+40S 2+10W -56 257.60 259.90 2.30 0.83 Upper   Bug
MDE-16-224 6+90S 0+55W -48 142.00 162.00 20.00 0.15 ?
MDE-16-225 4+20S  1+90W -52 128.56 145.72 17.16 1.74 Upper   Bug
including       131.03 132.75 1.72 6.00 "
and       138.26 144.00 5.74 2.84 "
which   includes       142.29 144.00 1.71 7.40 "
MDE-16-226  0+90S 2+40W -48 124.51 132.76 8.25 1.17 Zinc
including       125.49 126.18 0.69 9.14 "
        153.69 166.13 12.44 0.12 Upper   Bug
        193.58 222.98 29.40 0.22 Lower   Bug
MDE-16-227 0+90S 2+40W -58 189.72 202.50 12.78 0.56 Upper   Bug
MDE-16-228 7+90S 0+15W -58 38.16 49.24 11.08 0.42 New
        59.12 64.11 4.99 0.76 New
including       59.12 59.53 0.41 5.15 "

* 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 although the reported intercepts are estimated to range between approximately 60 and 80% of true thickness save for the new vein zone discovered in hole MDE-16-221 (see information below). All values presented uncapped.

Geological Interpretation

An anastomosing, relatively low sulphide, vein zone was intersected in hole MDE-16-221 between 110.90 and 137.80 metres, in the hanging wall to the Bug South deposit. The style of mineralization is distinct (< sulphide, < silica, < alteration) from that typically associated with the Bug Gold zones. The veins comprising the zone exhibit angles to the axis of the drill core ranging from 5 to 40 degrees, with the majority trending approximately 30 degrees to core axis. This suggests a more east-west, or northeast-southwest, strike to the new zone vs. the north-south strike of the Bug Gold Trend in this area. Additional testing of this new discovery to determine its true strike, dip, extent and estimated true thickness will be necessary and is clearly warranted based on the high-grade gold results.

Drill holes MDE-16-221, 223, 226 and 227 were drilled along the northern flank of the Bug South deposit and, similar to other holes in this area, intersected anomalous gold mineralization in the Upper Bug Zone over narrower width than holes drilled 50-75 metres to the south in the core of the deposit. Hole MDE-16-222 tested the Bug South deposit down plunge to the south near the feature which offsets the Bug South and Bug Southeast segments of the Trend.

In the Bug Southeast area anomalous gold mineralized intercepts, ranging in down hole width from 4.99 to 20.00 metres, were intersected on all three holes completed. Drilling throughout this area remains widely spaced with additional drilling required to more fully evaluate the potential of this portion of the Trend. Results from five additional holes drilled along the Southeast Zone and its potential extensions remain pending.

Detour East Property

Drill testing on the Detour East property has commenced. Six holes are planned for the Detour East property to provide first pass evaluation of four target areas, including potential extensions to the Lynx and Rambo gold zones. As well an induced polarization (I.P.) geophysical survey is underway to aid in future drill targeting in the northeastern quadrant of the property. The Detour East property stretches for approximately 20 kilometres east from the Ontario-Quebec border and is centered approximately 25 kilometres from the Company's Martiniere property. It borders the holdings of Detour Gold and is located along the two regional deformation zones that host the Detour Lake gold deposit and the recent 58N discovery.

The summer/fall 2016 drill program on the Detour Trend Project is anticipated to be completed this week with logging and sampling expected to continue through month end.

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 Property since inception, visited the property on multiple occasions, examined the drill core 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.

About Balmoral Resources Ltd. -- www.balmoralresources.com

Balmoral is a well-funded, Canadian-based company actively delineating and expanding multiple targets along the Bug Lake Gold Trend on its wholly owned, 700 square kilometre Detour Trend Project in Quebec, Canada. The Project also hosts Balmoral's Grasset Ni-Cu-Co-PGE deposit and numerous additional base metal occurrences. Employing an aggressive, drill focused exploration style in one of the world's pre-eminent geological and 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, the visual continuity of certain mineralized intervals 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 are not indicative of mineral deposits on 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