Mr. Darin Wagner reports
BALMORAL UPDATES EXPLORATION AND CORPORATE ACTIVITY
Balmoral Resources Ltd. has provided an update on its activities including results from the recent winter drill program which targeted nickel sulphide mineralization within the Grasset ultramafic complex (GUC) in west-central Quebec. Drill hole FAB-18-61, located in the Central GUC area, intersected a broad zone of nickel sulphide mineralization which returned 112.85 metres grading 0.27 per cent nickel and 0.013 per cent cobalt beginning at less than 200 metres below surface. This intercept builds on previous results from nearby holes FAB-15-46 (133.03 metres grading 0.25 per cent nickel and 0.012 per cent cobalt), FAB-15-47 (40.38 metres grading 0.29 per cent nickel and 0.036 per cent cobalt -- terminated in mineralized zone) and FAB-18-54 (120.57 metres grading 0.26 per cent nickel and 0.012 per cent cobalt), and confirms the presence of a third significant nickel sulphide system within the GUC.
This broad zone of nickel sulphide mineralization occurs in a geological setting which is highly analogous to that of the company's high-grade Grasset nickel-copper-cobalt-PGE (platinum group elements) deposit, located seven kilometres to the southeast, and may represent the halo or marginal phase of a similar system. Like Grasset, the new discovery occurs within an olivine-cumulate-dominated intrusive conduit feeding higher-level volcanic phases of the GUC. The company's recent high-grade, Type 1 komatiite-hosted, nickel-cobalt-copper PGE discovery (see news release dated Jan. 17, 2019) occurs stratigraphically below this broader Type 2 discovery within the lower volcanic sequence of the complex. The new zone remains open along strike to the northwest, updip to the bedrock surface and to depth.
"While we remain at the very early stage of evaluating the nickel sulphide endowment of the GUC, to see another system in the complex exhibiting grade continuity across these kinds of widths in the near surface is very encouraging. Given what we know about the Grasset deposit we are excited by the potential for expansion of what we see in the GUC Central area and bullish on the discovery potential of the large untested areas of the complex," said Darin Wagner, president and chief executive officer of Balmoral Resources. "With 100-per-cent control of the entire complex, the benefits of our evolving understanding of the GUC will flow directly to Balmoral shareholders as nickel inventories continue their rapid decline and demand for Class 1 nickel to feed the expanding EV battery market increases over the months and years ahead."
TABLE OF RESULTS
Hole From To Interval* Nickel Copper Cobalt Pt Pd
No. (metres) (metres) (metres) (%) (%) (%) g/t g/t
FAB-18-55 Ext 388.65 431.68 43.03 0.23 0.01 0.01 NA NA
463.68 464.14 0.46 0.42 0.03 0.03 0.19 0.11
687.67 688.06 0.39 0.43 0.02 0.04 0.06 0.12
FAB-19-60 120.06 121.73 1.67 0.41 0.09 0.02 NA NA
FAB-19-61 67.78 68.41 0.63 0.34 0.12 0.01 NA NA
245.35 358.20 112.85 0.27 0.03 0.01 NA NA
364.78 365.16 0.38 0.54 0.10 0.02 NA NA
588.00 589.39 1.39 0.39 0.08 0.02 0.07 0.18
* Reported drill intercepts are not true widths. Insufficient drilling has
been conducted in this area to date to determine true widths. All values
are reported uncapped.
The two new and one extended drill holes completed during the recent drill program targeted the high-grade, Type 1 komatiite-hosted nickel sulphide mineralization intersected by Balmoral in late 2018. All three holes intersected a postmineralization gabbro sill which appears to have intruded along the targeted basal contact of the ultramafic volcanic sequence. This sill appears to be the same one intersected in hole FAB-18-57 (see news release dated Jan. 17, 2019).
In two of the three holes, nickel sulphide mineralization is clearly observed to be increasing immediately above the sill. The holes pass from the sulphide-mineralized ultramafic volcanic, into the gabbro sill, and then into footwall sedimentary lithologies which exhibit local conductivity. The company now has a better understanding of the geometry of this postmineralization intrusive body and will look to target the basal nickel sulphide mineralization beneath or above the sill in future drilling.
"It is unfortunate to see the postmineralization intrusion basically eat away the target horizon in the areas tested, but at the same time it is encouraging to see clear evidence of Type 1 nickel sulphide mineralization forming, which confirms the model developed from the first holes on this new discovery. There remains several kilometres of prospective stratigraphy to evaluate," said Mr. Wagner.
The next phase of activity in the Central GUC area will involve additional, deep-penetrating geophysical surveying of key areas in and around the recent discoveries to aid target selection prior to a resumption of drill testing.
Gargoyle and Ghost nickel-copper-cobalt properties, Atikokan, Ont.
The company has been advised by Geotech Ltd. of Aurora, Ont., that the detailed airborne VTEM Plus survey of the Gargoyle and Ghost properties (see
news release dated Sept. 6, 2018) has now been completed. In total 1,926 line kilometres were surveyed at low altitudes on 100-metre-spaced lines across the two properties. Preliminary results are anticipated in the near future with final results expected midsummer in time to help focus planned ground-based programs this summer.
Balmoral acquired an option to earn a 100-per-cent interest in the Gargoyle property in the fall of 2018 (see news release dated Aug. 27, 2018) and subsequently expanded the Gargoyle property and acquired the Ghost and Goblin properties by staking (see news release dated Sept. 6, 2018) and now controls 21 mapped or interpreted ultramafic volcanic and intrusive bodies in the Lumby Lake belt located north-northeast of Atikokan, Ont. Only one of these ultramafic bodies is known to have been drill tested.
$572,000 exploration tax refund received
The company further advises that it has received a tax refund of $572,000 from Revenue Quebec for expenditures incurred in the province of Quebec by the company in 2016. This, along with the recently completed financing, bolsters the company's treasury and provides financing for the planned 2019 and 2020 programs. The company anticipates receipt of an additional refund from work completed during the 2017 tax year later in 2019.
Michael Tucker (PGeo, B.C., Ontario, and temporary permit, Quebec), project geologist for the company, is the non-independent qualified person for the technical disclosure concerning the work completed in the Central GUC area of the Fenelon property in this release. Mr. Tucker supervised the winter 2019 drill program described herein and has worked on the Grasset and Fenelon properties since 2014. Mr. Wagner is the non-independent qualified person for the balance of the technical disclosure contained in this news release. Mr. Wagner has supervised the company's exploration activities since inception. Both individuals have reviewed the technical content of this release.
About Balmoral Resources Ltd.
Balmoral is a multiaward-winning Canadian-focused exploration company actively exploring a portfolio of gold and base metal properties located within the prolific Abitibi greenstone belt. The company's flagship 1,000-square-kilometre Detour gold trend project hosts the resource stage Bug and Martiniere West gold deposits and the Grasset nickel-copper-cobalt-PGE deposit. Employing an aggressive, drill-focused exploration style in one of the world's pre-eminent mining jurisdictions, Balmoral is following an established formula with a goal of maximizing shareholder value through the discovery and definition of high-grade, Canadian gold and base metal assets.
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