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Analyst Note
By Éric Lemieux, MSc, P.Geo
Mining & Exploration Analytics
[email protected]
April 21, 2015
Balmoral Resources Ltd. (BAR-T)
In the heart of Bug Lake, robust grades in the upper steep
Event: Initial 2015 winter drill results at Bug Lake, Québec Detour Gold Trend.
Impact: Positive. Drill results in the core of the Bug Lake system show complexity, but fertile gold zones that
remain open. Again, several pots on the fire suggest an active news flow for spring and more work warranted this
summer.
Analysis
• On April 20, 2015, Balmoral provided initial drill results from the winter 2015 drilling campaign on Bug
Lake, Martinière property, Quebec Detour Trend. Balmoral reported diamond drill results from 9 holes (30
holes recently completed) in the heart of the Bug Lake NNW-SSE trending zone. Results continue to
demonstrate the complexity of the mineralized system but also confirm the high-grade gold nature of
mineralization within the numerous zones footwall zones located along the upper steep of the Bug Lake Gold
Trend. Recall the Martinière property forms part of the Balmoral’s ~700km2 Detour Trend Project and is located
approximately 40km west of Balmoral's Grasset Ni-Cu-PGE discovery (see April 9, 2015 Analyst Note).
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This document has been prepared for general information purposes only and should not be considered a solicitation to purchase or sell securities. Any opinions or
analysis herein reflect the views of the Analyst as at the date appearing above, and are subject to change without notice. The information contained in this document is
derived from sources we deem to be reliable, but cannot be guaranteed. PearTree Securities Inc. (“PT Securities”) and/or its affiliates and/or any of their respective
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• Results from the upper steep of Bug Lake are highlighted by intercepts in the Footwall Zone of 44.45m
@ 19.55 g/t Au, including 24.14m @ 34.84 g/t Au (MDE-15-166) and 22.48m @ 7.01 g/t Au (MDE-15-173);
the shallow infill drilling focused in an area ~225m long x 150m of the open ended Bug Lake Gold Trend
and succeeded in confirming grades and thicknesses. Recall the Bug Lake Trend is the most significant of
the three gold-bearing trends discovered to date on the Martinière Property (Martinière West, Bug Lake,
Martinière East) and consists of up to ~4 anastomosing pinch and swell gold-bearing zones that are centered
around the NNW-SSE Bug Lake Fault Zone (BLFZ) and Bug Lake porphyry (see Exhibits 1 and 2). Total
mineralized zones at Bug Lake occur over a strike length of ~1280m and to a true vertical depth of ~320m and
follow a sigmoid (or “steep -ramp-flat - steep”) morphology with an upper steep part that extends from the base
of the ~50m overburden to a true vertical depth of ~150m whereas the lower steep starts at ~180m true vertical
depth and may extend beyond ~450m. All drill results of the winter 2015 campaign come from the upper steep
within the northern part of the BLFZ which is characterized by well-developed Lower Bug Lake and Footwall
zones (whereas the southern part of the BLFZ has the highest grades within the Upper Bug Lake and Hanging
Wall zones).
• This confirmation infill drilling of 9 holes has an average grade x thickness of ~26 g/t Au x m
(estimated true thickness) in the higher end of our expectations. The Bug Lake Footwall Zone discovered
in 2012, is now notable, beyond its exceptionally high gold grades, for also its local thickness and
robustness. The identification of high-grade base metal sulphides potentially associated with the Martinière East
VMS system with 0.97m @ 2.65% Cu, 5.93% Zn and 5.25 g/t Au and 50.88 g/t Ag (hole MDE-15-172) opens up
the potential for gold bearing volcanic massive sulfides. This intersection in the northern end of the winter drill
program could be likely followed up with pending holes 193, 192 (see Exhibit 2) and remains an underexplored
type of target on the rest of the property.
• Recall that current and previous results at Martinière show structural and lithological complexity that
are indicative, in our opinion, of an important multi-stage fertile gold system. Balmoral controls one of the
largest land positions in this sector of the Abitibi greenstone belt and we believe there are more areas of fertile
polymetallic mineralization along the Detour Gold Trend. Balmoral’s cash position of ~$10M should allow the
company to maintain the pace on the Detour Lake Trend Gold project. Short-term catalysts are additional drill
results from Bug Lake, expansion drilling at Grasset Horizon 3 and grass-root exploration holes. Other later
catalysts could include a potential maiden NI 43-101 mineral resource estimate by Q4/2015 on Grasset and Bug
Lake.
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