Balmoral Resources Ltd.
TSX VENTURE : BAR

Balmoral Resources Ltd.

May 04, 2011 08:00 ET

Balmoral Reports Multiple High-Grade Gold Intercepts from Confirmation/Expansion Drilling at Fenelon, Quebec

-- Highlights include confirmation hole FAB-11-10; 25.68 g/t (0.75 oz/t) gold over 25.34 metres (83.14 feet), including 97.33 g/t (2.84 oz/t) over 6.12 metres (20.08 feet)

-- Traces Fenelon gold system to 250 metres vertical depth

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 4, 2011) - Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSX VENTURE:BAR) announced today that confirmation and expansion drilling on the Company's Fenelon Gold Project in central Quebec has returned numerous high-grade gold intercepts expanding the high-grade Fenelon gold zone. The reported intersections are highlighted by confirmation hole FAB-11-10 which returned 25.68 g/t (0.75 oz/t) gold over 25.34 metres (83.14 feet), including a very high-grade intercept from the D Vein of 97.33 g/t (2.84 oz/t) gold over 6.12 metres (20.08 feet).

HoleFromToInterval*Gold
No.Section VeinTypeMetresMetresMetresg/t
FAB-11-011050EConfirm90.4090.770.371.71
D94.2097.002.8014.83
including94.2094.600.4078.80
FAB-11-021050EConfirm116.00120.004.000.48
D124.00125.001.000.26
FAB-11-031050EExpand127.00129.002.001.56
D133.00135.002.008.74
C140.00143.003.001.03
FAB-11-041050DExpand162.00165.003.008.16
FAB-11-051050/1040DExpand~225.00--NSR
FAB-11-061050DExpand309.00319.0010.001.04
FAB-11-071070FExpand71.1975.003.813.52
E87.0087.500.504.34
D90.0091.281.285.34
FAB-11-081070?Expand42.0042.280.285.66
DExpand103.00110.107.100.18
CExpand119.65122.002.358.86
FAB-11-091070DConfirm119.00121.002.000.54
FAB-11-101040EConfirm117.00118.001.002.68
D+C124.66150.0025.3425.68
includingD124.66130.856.1997.33
and includingInt. 3142.57145.102.5313.20
and includingC148.00150.002.004.68
FAB-11-111040DExpand138.50140.001.500.22
* Reported intercepts are interpreted to represent 80 to 95% of true thickness; NSR – No Significant Results

Drilling has also now successfully intersected the Fenelon gold system to a vertical depth 250 metres, over 100 metres deeper than previous mineralized intercepts on Section 1050, one of three sections tested by the holes reported herein. The Fenelon Zone remains open to depth. Photos of the drill core from hole FAB-11-10 and cross-sections 1040E, 1050E and 1070E are available on the Balmoral website at www.balmoralresources.com.

"Today's results confirm the exceptional gold tenure of the Fenelon gold system and indicate that the system remains open to depth – well beyond the limit of historic resource drilling," said Darin Wagner, President and CEO of Balmoral Resources. "As a result of our initial work on the Fenelon Project a new geological model is emerging for the high-grade Fenelon Gold Zone. Future drill testing will apply this model to expansion drilling and to exploration drilling on the Fenelon Project which spans more than 20 kilometres of the Detour Lake gold trend."

Results reported include four confirmation holes – FAB-11-01, FAB-11-02, FAB-11-09 and FAB-11-10 drilled proximal to historic holes from the Fenelon Zone as part the Company's confirmation program directed at producing a NI43-101 compliant resource report for the Fenelon Zone in 2011. An additional eight reported holes were targeted at expanding/extending the existing near surface resource potential of the Fenelon Zone. Hole FAB-11-06, the deepest hole of the current drill program, successfully intersected the Zone at a vertical depth of 250 metres over encouraging widths.

The exceptional results reported from hole FAB-11-10 confirm the extremely high-grade nature of the known near-surface core of the Fenelon Zone. Hole FAB-11-10 intersected the D, Int.3 and C veins approximately 7.00 metres above historic hole 1040-04 which returned a D vein intercept of 72.01 g/t gold over 11.28 metres. Results from an additional 26 expansion holes, representing 7 additional drill sections, and from 7 exploration holes testing targets outside the main Fenelon Zone remain pending. Drilling will resume on the Fenelon Project following break-up.

The high-grade Fenelon Gold Zone is comprised of a series of sub-vertically oriented gold-bearing shear veins (A to F) hosted within or adjacent to a mafic-ultramafic intrusion. Located 29 kilometres east of, and now contiguous with, Balmoral's Martiniere Gold Project where initial drill results indicate the discovery of high-grade gold mineralization at Martiniere West, the Fenelon Gold Zone is the eastern-most known gold occurrence along the Detour Gold Trend. The Detour Gold Trend can now be traced for 80 kilometres from the multi-million ounce Detour Gold deposit in Ontario through the Fenelon Gold Zone in Quebec. Balmoral controls a land package extending for 70 kilometres along this trend; the least explored of the major gold trends in the Abitibi Greenstone Belt.

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 initial work programs on the properties, visited the properties on multiple occasions, examined the drill core from the holes summarized in this release and reviewed the 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 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 securely stored on-site at the Company's Fenelon camp in Central Quebec. Drill core samples are transported in sealed bags to ALS-Chemex's Val d'Or, Quebec analytical facilities. Gold analyses are obtained via industry standard fire assay with atomic absorption finish using 50 g aliquots. For samples returning greater than 1.0 g/t gold the sample is re-analyzed via fire assay with a gravimetric finish. The Company has also requested that any samples returning greater than 8.0 g/t gold undergo screen metallic assay. Following receipt of assays visual analysis of mineralized intercepts are conducted and additional analysis may be requested to insure the accurate representation of mineralized zones. ALS Chemex is an ISO 9001-200 and ISO 17025 certified laboratory.

About Balmoral Resources Ltd. – www.balmoralresources.com

Balmoral is a Vancouver-based precious metal exploration and development company focused on district scale gold opportunities in politically favourable jurisdictions in North America. With a philosophy of creating value through the drill bit and with a focus on proven productive precious metal belts, Balmoral is following an established formula with a goal of maximizing shareholder value through discovery.

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, 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.comand 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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