04:18:27 EDT Sat 11 Jul 2020
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Balmoral Resources Ltd
Symbol BAR
Shares Issued 178,398,041
Close 2020-04-30 C$ 0.495
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Balmoral drills 1.06 m of 858 g/t Au at Fenelon

2020-04-30 19:05 ET - News Release

Mr. Darin Wagner reports


Balmoral Resources Ltd. has made a new, very high-grade gold discovery on its Fenelon property in Quebec. The Reaper gold discovery returned an intercept of 858.00 grams per tonne gold over 1.06 metres, as part of a broader 2.97-metre-wide mineralized zone grading 307.89 g/t gold. The Reaper discovery occurs along the western margin of the Area 51 intrusion on the southern part (Area 52 segment) of the company's Fenelon property. Wallbridge Mining Company Ltd.'s high-grade Tabasco zone occurs along the eastern margin of the same intrusion on the adjacent Fenelon mine property. Balmoral's Fenelon property forms part of the company's district-scale Detour gold trend project in Quebec.

Balmoral and Wallbridge announced on March 2, 2020, that they had entered into a definitive arrangement agreement pursuant to which Wallbridge will acquire Balmoral by way of a plan of arrangement. The proposed transaction would consolidate the Area 51 gold system and create one of the best-financed gold exploration companies in Canada. The transaction would combine Wallbridge's development-stage Fenelon gold mine and recent high-grade Tabasco zone gold discovery with Balmoral's dominant land position along the Detour gold trend, which includes the Fenelon property and nearby gold and nickel resource-stage assets at Martiniere and Grasset.

The Reaper gold discovery was intersected at a shallow depth -- approximately 70 vertical metres below surface -- in hole A52-20-18. A52-20-18 was the westernmost hole of the winter 2020 drill program and is the westernmost hole drilled to date in Area 52 by the company. The discovery intercept is characterized by the occurrence of moderate to very fine-grained visible gold mineralization located within quartz-chlorite-filled microfractures and veinlets. The gold mineralization is hosted by sericite-altered, weakly pyritic, moderately deformed fine-grained siltstone. Four separate assay results from the interval between 100.90 and 101.96 metres in hole A52-20-18 returned assays ranging from 136 g/t gold to the reported 858 g/t gold, the wide range anticipated due to the abundance of free gold in that interval.

Drill hole A52-20-18 also returned, in a separate intersection, the broadest, continuous zone of gold mineralization -- 164.11 metres averaging 0.38 g/t gold -- intersected to date within the expanding Ripley gold zone. The Ripley gold zone, which was discovered by Balmoral in 2019, has now been traced along strike in an east-west direction for approximately 550 metres and remains open in all directions. Hole A52-20-18 commenced on March 8 and was completed to a depth of 587 metres on March 12, 2020.

Drilling of a follow-up hole was set to commence when the Quebec government announced the closing of all non-essential operations in late March as a result of the COVID-19 outbreak in the province. Exploration activities in Quebec remain suspended at this time.

Hole                 From            To      Interval*         Gold          Zone
No.               (metres)      (metres)      (metres)         (g/t)

A52-20-14          218.00        222.30          4.30          1.39       Area 51
including          219.43        220.80          1.37          3.71       Area 51
A52-20-15           45.60         46.00          0.40          3.11        Ripley
                    68.88        122.85         53.97          0.21        Ripley
including           68.88         69.50          0.62          3.05        Ripley
                   147.65        214.32         66.67          0.15        Ripley
including          189.14        189.62          0.48          3.86        Ripley
A52-20-16           67.28         89.31         22.03          0.39       Area 51
                   131.28        173.13         41.85          0.22        Ripley
A52-20-17          111.85        125.49         13.64          0.47      Ripley S
                   270.32        273.09          2.77          9.37        Ripley
including          271.15        273.09          1.94         12.74        Ripley
                   278.44        278.92          0.48          7.39        Ripley
A52-20-18          100.90        103.87          2.97        307.89        Reaper
including          100.90        101.96          1.06        858.00        Ripley
                   420.57        584.68        164.11          0.38        Ripley
including          466.50        472.16          5.66          1.16        Ripley
A52-20-19          230.99        239.35          8.36          0.50       Area 51
including          237.73        238.31          0.58          3.90       Area 51
                   324.06        331.22          7.16          0.27        Ripley
A52-20-20          281.70        293.29         11.59          0.38        Ripley
                   331.93        337.75          5.82          1.28      Ripley S
including          333.76        334.21          0.45          9.13      Ripley S
A52-20-21          194.26        294.31        100.05          0.16        Ripley

* Reported drill intercepts are not true widths. At this time, there 
are insufficient data with respect to the shape of the mineralization 
to calculate true orientations in space.
** Final quality assurance/quality control results remain pending for 
this interval. Reassay of this interval has been requested after an 
initial QA/QC failure with respect to the company inserted standard. 
Results from the reassay were not available at the time of preparation 
of this release and are not expected prior to the May 5, 2020, cut-off 
date for votes with respect to the pending transaction between the 
company and Wallbridge. This result is thus provided for context and 
completeness, and should not be relied on in isolation.

Ripley gold zone

The winter 2020 drill program intersected the Ripley gold zone in multiple holes. This east-west-trending zone of gold mineralization undergoes a marked change in character as it transitions from sedimentary host rocks to the east into the dioritic Area 51 intrusion to the west. To the east, where initially discovered, it is characterized by a five- to 25-metre-wide corridor of shearing and variable alteration. In this area, it often features a central high-strain zone, which hosts increased veining and high-grade gold mineralization.

On intersecting the Area 51 intrusion, the Ripley zone broadens considerably and is best characterized as an anastomosing network of gold-bearing fractures and microfractures developed around local narrow, often higher-grade, shear zones all within a broad envelope of sericite alteration. Drilling to date suggests a bending or flexing of the Area 51 intrusion as it encounters the shear corridor hosting the Ripley zone, which may account for the increased fracture/vein density and broader mineralized intervals within the intrusion. This is likely to be the result of the Area 51 intrusion behaving in a more brittle fashion than the surrounding sedimentary rocks.

Anomalous gold mineralization was observed over intervals of 41.85, 53.97, 66.67, 100.05 and 164.11 metres within that portion of the Ripley gold zone that is hosted by the Area 51 intrusion. Gold grades over these broad widths more than double from east to west, as they head into a large, untested portion of the Fenelon property.

"The very high-grade, near-surface Reaper gold discovery and the dramatic broadening of the Ripley zone observed as we follow it west into the Area 51 intrusion further demonstrate the additional growth and near-term discovery potential within the Area 51 gold system," said Darin Wagner, president and chief executive officer of Balmoral Resources. "Our team has put two more gold discoveries on the board and, in doing so, have provided a third clear area of focus for the soon to be combined companies within this large gold system. We very much look forward to watching the evolution of these new gold discoveries and the combined property portfolio."

Qualified person and quality control

Michael Tucker (PGeo, British Columbia and Ontario, and temporary permit, Quebec), exploration manager for the company, is the non-independent qualified person for the technical disclosure contained within this release. Mr. Tucker supervised the winter 2020 drill program described herein and has worked on the Fenelon property since 2014. Mr. Tucker has reviewed the drill core and analytical results described herein, and has approved of the scientific and technical information contained within this release.

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 include 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 Val d'Or field office in Quebec. Drill core samples are transported in sealed bags to ALS Minerals' Val d'Or, Que., or Timmins, Ont., analytical facilities. Gold analyses are obtained by industry standard fire assay with atomic absorption finish using 30-gram 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 and Timmins facilities are ISO 17025 certified for gold analysis.

About Balmoral Resources Ltd.

Balmoral is a multiaward-winning Canadian-focused exploration company, 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 recently discovered Ripley and Reaper gold zones, the resource-stage Bug and Martiniere West gold deposits, and the Grasset nickel-copper-cobalt-platinum-group-element deposit. Balmoral has for nearly a decade employed a drill-focused exploration strategy with a goal of maximizing shareholder value through the discovery and definition of high-grade, Canadian gold and base metal assets in one of the world's pre-eminent mining jurisdictions.

On March 2, 2020, Balmoral announced that it had entered into the arrangement agreement with Wallbridge Mining, based in Sudbury, Ont.

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