Balmoral Resources Ltd. (TSX:BAR) (OTCQX:BALMF) today reported the initial resource estimate for the near surface portion of the Martiniere gold system on the Company’s wholly owned Martiniere Property in Quebec. The initial resource estimate confirms the continuity of the gold mineralization within the Bug and Martiniere West Deposits and indicates potential for a significant portion of the currently outlined deposits (73%) to be extracted via open pit.
Over 93% of the estimated initial resource is contained within the upper 350 metres of the system. Expansion drilling below this level has begun and is currently anticipated to continue through the balance of 2018. Balmoral’s drilling has confirmed that the Bug Gold Deposit continues to over 650 metres vertical depth, and is open below that, providing a clear path for near-term resource expansion. The present estimate does not include the recently discovered Bug NW Extension or several other promising recent gold discoveries on the property which all provide additional avenues for further expansion of one of the Abitibi’s newest gold systems.
INITIAL RESOURCE ESTIMATE
The initial resource estimate for the Martiniere Gold System has been prepared by Mr. Marc Jutras (P.Eng., M.A.Sc.) of Ginto Consulting Inc. and is summarized below. Mr. Jutras is an Independent Qualified Persons pursuant to NI 43-101.
“The initial resource estimate for the Martiniere gold system, which outlines those resources occurring principally over the upper 350 vertical metres of the system, provides a strong base from which to continue to expand” said Darin Wagner, President and CEO of Balmoral. “The 2016 discovery of the Bug South deposit, and the multiple near surface discoveries since then, have provided the opportunity to outline a significant open pit resource at Martiniere, which could then potentially give way to underground development several years into any envisaged future operation. Our near-term focus at Martiniere will remain on the expansion of the gold system on multiple fronts.”
Table 1 – Base Case Initial Mineral Resource Estimate – Effective Date of March 27, 2018
MARTINIERE GOLD SYSTEM | |||
BASE CASE – INDICATED MINERAL RESOURCE | |||
Gold Cut-Off Grade | Tonnage | Average Gold Grade | Contained Gold |
g/t | tonnes | g/t | oz |
CONSTRAINED OPEN PIT @ $1300 US/oz | |||
0.5 | 6,827,000 | 1.96 | 431,000 |
UNDERGROUND | |||
2.5 | 1,092,000 | 4.54 | 159,000 |
MARTINIERE GOLD SYSTEM | |||
BASE CASE – INFERRED MINERAL RESOURCE | |||
Gold Cut-Off Grade | Tonnage | Average Gold Grade | Contained Gold |
g/t | tonnes | g/t | oz |
CONSTRAINED OPEN PIT @ $1300 US/oz | |||
0.5 | 132,000 | 2.50 | 11,000 |
UNDERGROUND | |||
2.5 | 231,000 | 5.75 | 43,000 |
Resource Estimate Assumptions and Notes:
The initial resource estimate for the Martiniere Gold System is based on results from 93,294 assays collected from 490 diamond drill holes representing in total 91,988 metres of drilling.
As indicated above, the base case initial resource includes both an open pit and an underground component reported at cut-off grades of 0.5 g/t and 2.5 g/t respectively after incorporation of estimates for operating costs based on those associated with mines currently operating in the local region, mill recoveries and overburden removal at an estimated long-term gold price of US$1,300.
Figure 1 provides a plan view of the block models and optimized pit shells. Figure 2 and Figure 3 provide longitudinal sections through the block models for the Bug and Martiniere West gold deposits, both within the optimized pit shell and below. Both figures clearly demonstrate that the deposits are open for expansion down-plunge to depth. The majority of the initial indicated resource (76%) is contained within the Bug Gold Deposit. Additional maps and sections are available at www.balmoralresources.com
Table 2 (below) provides an analysis of the volumetric resources at a range of cut-off grades for the modeled portion of the Martiniere Gold System as calculated by the Qualified Person.
Table 2: Sensitivity Analysis at a Range of Cut-Off Grades (Base Case Highlighted)
MARTINIERE GOLD SYSTEM | |||
INDICATED MINERAL RESOURCE | |||
Gold Cut-Off Grade | Tonnage | Average Gold Grade | Contained Gold |
g/t | tonnes | g/t | oz |
CONSTRAINED OPEN PIT @ $1300 US/oz | |||
0.5 | 6,827,000 | 1.96 | 431,000 |
0.7 | 5,703,000 | 2.23 | 409,000 |
1.0 | 4,355,000 | 2.66 | 372,000 |
UNDERGROUND (Based on Open Pit @ 0.5 g/t cut-off) | |||
2.0 | 1,657,000 | 3.75 | 200,000 |
2.5 | 1,092,000 | 4.54 | 159,000 |
3.0 | 751,000 | 5.36 | 129,000 |
MARTINIERE GOLD SYSTEM | |||
INFERRED MINERAL RESOURCE | |||
Gold Cut-Off Grade | Tonnage | Average Gold Grade | Contained Gold |
g/t | tonnes | g/t | oz |
CONSTRAINED OPEN PIT @ $1300 US/oz | |||
0.5 | 132,000 | 2.50 | 11,000 |
0.7 | 122,000 | 2.67 | 10,000 |
1.0 | 108,000 | 2.89 | 10,000 |
UNDERGROUND (Based on Open Pit @ 0.5 g/t cut-off) | |||
2.0 | 332,000 | 4.68 | 50,000 |
2.5 | 231,000 | 5.75 | 43,000 |
3.0 | 185,000 | 6.50 | 39,000 |
Qualified Persons
The Independent and Qualified Person for the Mineral Resource Estimate, as defined by NI 43-101, is Mr. Marc Jutras, P.Eng. (B.C. and Que.), M.A. Sc. Principal of Ginto Consulting Inc. Mr. Jutras confirms that he has reviewed this press release and that the scientific and technical information is consistent. The Qualified Person will prepare and deliver to Balmoral, in conjunction with Equity Exploration Consultants Ltd., a technical report in support of this initial resource estimate for the Martiniere Gold System. Balmoral will, in accordance with National Instrument 43-101, file the report on SEDAR (www.sedar.com) within 45 days of this release. The Company will provide notification once the report has been filed.
About Balmoral Resources Ltd.
Balmoral is a well-funded, Canadian-based company actively expanding the 590,000+ ounce Martiniere gold system on its Detour Gold Trend Project in the Abitibi region of Quebec. Martiniere is one of the most recent gold systems discovered in the Abitibi and is host to a number of open-ended gold zones and deposits.
Balmoral also controls the largest undeveloped nickel sulphide deposit in the Abitibi region, the Grasset Ni-Cu-Co-PGE deposit which also remains open for expansion and a dominant land position along trend from one of Canada’s largest gold mines. Employing a drill focused exploration style in one of the world’s preeminent 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
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