Balmoral Resources Ltd. (TSX: BAR) (TCQX: BALMF) announced today that it has entered into an option agreement to acquire the Gargoyle Property in Ontario where nickel sulphide mineralization was recently discovered in intermittent outcrop exposure over a strike length in excess of 1,000 metres. Grab samples collected from the property have returned grades of 0.25% to 0.71% nickel, with anomalous copper and cobalt values.
The road-accessible Gargoyle Property is situated within the Lumby Lake greenstone belt, approximately 55 kilometres northeast of Atikokan, Ontario (Figure 1). The property, which is comprised of 42 claim units in two blocks, covers a series of recent nickel sulphide discoveries made by Bjorkman Prospecting (Figure 2). The nickel occurrences are hosted within a poorly exposed ultramafic komatiite sequence traceable through the property for over 10 kilometres in available government airborne magnetic data (Figure 3).
Like Balmoral’s Grasset nickel-copper-cobalt-PGE deposit, the Gargoyle nickel sulphide discoveries are disseminated in nature, and nickel dominant. The presence of numerous airborne EM conductors along the projected strike of the discoveries suggests potential for more massive, high-grade nickel sulphide mineralization on the property. There is no reported historic drill testing on the property.
“The Gargoyle property acquisition supplements our renewed focus on nickel exploration and nicely complements the recently announced drill program at Grasset,” said Darin Wagner, President and CEO of Balmoral. “New, road accessible nickel sulphide discoveries in places like Ontario are very infrequent and we are excited by the opportunity this acquisition represents for the Company and its shareholders.”
The Lumby Lake belt is one of the oldest known, and most primitive volcanic sequences in the Superior Province. It is similar in age range to the Kambalda nickel camp in Australia which hosts numerous active and historic nickel sulphide mines. Like the Kambalda camp, the Lumby Lake belts features numerous komatiitic volcanic and intrusive sequences intimately intermixed with sulphide-bearing exhalative sedimentary units, which provide an ideal sulphur source for the formation of nickel sulphide mineralization. As with the Company’s Grasset deposit and the nickel sulphide deposits in similar host rocks in the Timmins, Ontario region, these primitive ultramafic sequences have the potential to host both high-grade underground and larger tonnage, open-pit nickel sulphide deposits with associated copper, cobalt, platinum, palladium, gold and silver.
Balmoral has entered into an Option Agreement whereby the Company can acquire a 100% interest in the Gargoyle Property from Mr. Karl Bjorkman by making cash and share payments as outlined below:
Cash payments totaling $140,000 as follows:
Share payments totaling 390,000 shares as follows:
Balmoral may accelerate the payment schedule. Upon successful exercise of the Agreement Balmoral will grant a 2% NSR royalty to the vendor, half of which the Company may repurchase at any time for the sum of $1,000,000. The Company also has a right of first refusal on the sale of the remaining NSR interest.
The share payments under the Agreement remain subject to the approval of the Toronto Stock Exchange.
Balmoral plans to conduct a detailed airborne Mag/EM program over the Gargoyle Property during the fall of 2018, along with additional prospecting and mapping. This will be tentatively followed by ground based geophysical work during the winter of 2018-2019 in preparation for initial drill testing.
Mr. Michael Tucker (M.Sc.; P.Geo. B.C., Ontario), an employee of the Company, is the non-independent qualified person for the technical disclosure contained in this news release. Mr. Tucker has recently visited the Gargoyle Property and confirmed the occurrences of the nickel sulphide mineralization and approved of the technical information contained within this release.
About Balmoral Resources Ltd.
Balmoral is a well-funded, multi-award 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 km2 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 preeminent 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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