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Analyst Note
By Éric Lemieux, MSc, P.Geo
Mining & Exploration Analytics
[email protected]
May 14, 2015
Balmoral Resources Ltd. (BAR-T)
More results from the heart of the northern segment of Bug Lake, Footwall Zone better defined
Event: 11 holes from the 2015 winter drilling at Bug Lake, Québec Detour Gold Trend.
Impact: Neutral. Drill results in the core of the northern segment of the Bug Lake system suggest shallow and
high-grade nature of the Footwall Zone. Sigmoid cigars plunging moderately southwards.
Analysis
• On May 13, 2015, Balmoral provided more drill results from the winter 2015 drilling campaign on Bug
Lake, Martinière property, Quebec Detour Trend. Balmoral reported diamond drill results from 11 holes (20/29
holes now disclosed) in the heart of the Bug Lake NNW-SSE trending zone. 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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• The winter 2015 program has allowed to expand and constrain the multiple gold mineralized zones
within the Bug Lake Trend. Drill results of the winter 2015 campaign come from the northern segment of the
Bug Lake Trend and from within the upper steep where the fault system exhibits near vertical geometry with
south-plunging gold zones (cigars) developed within vertically dipping structural zones (see Exhibit 1). Results
were essentially highlighted by the intercept of 15.75m @ 9.30 g/t Au including 7.51m @ 18.11 g/t Au (hole
MDE-15-175A) from the Footwall Zone which is 12m below MDE-15-166, which returned an intercept 44.45m @
19.55 g/t Au (see April. 21, 2015 Analyst Note). We estimate that grade x thickness of this intercept is ~68 g/t x
m using 50% of the interval thickness. The confirmation infill drilling of 11 holes in the northern segment has an
average grade x thickness of ~17g/t Au x m (estimated true thickness) in the lower end of the previous results
and slightly below our expectations. Holes MDE-15-180 to-183 tested the northern ramp-flat section (20-45
degree dip) characterized by broad zones of gold mineralization but weaker development of the higher grade
structural zones which characterize the "steeps" further to the south. Assay results gave 68.7m @ 0.68 g/t Au
starting at a shallow 22m depth. We understand that interpretation of the new results suggest a possible local
fault repeat of the Footwall Zone in the vicinity of hole MDE-15-166 and hence its thickness, however results
continue to demonstrate the very high grade nature of the Footwall Zone near surface and expand its footprint
down-plunge as a cigar plunging moderately southwards.
• The Bug Lake fault corridor hosts a number of sub-parallel, steeply dipping and moderately
south-plunging gold zones which have been intersected to vertical depths of ~400m and which remain
open. The Bug Lake Trend is a ~1,280m long by 50 to 120m wide, roughly NNW-SSE fault striking corridor
sub-divided into a northern and a southern segment roughly half way through its known strike length by a late,
NW directed fault with a ~75m dextral offset. These include the very high-grade Footwall Zone, the Upper and
Lower Bug Lake Zones and the Hanging Wall Zone. Mineralized zones 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. The Bug Lake Trend also cross-cuts local, NNE striking moderately south-dipping volcanic stratigraphy
(host to the Martinière East VMS occurrence) at a high angle (75 to 85 degrees); the gold VMS-type
mineralization remain prime targets on the property.
• 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 as attested by the
58N zone of Detour Gold along the Lower Detour (see April 30, 2015 Analyst Note). We understand that ~9
remaining infill holes on Martinière’s Bug Lake northern segment zone remain pending and should continue to
better define the sigmoid south plunging cigars and the near-surface potential of the Bug Lake zone. On Grasset
Ni-Cu-PGE, 7 step out (deep and to the NW) holes on Grasset Horizon 3 Central zone and 1 additional hole
testing a Horizon 1 target remain to be disclosed as well as 5 exploration holes on the 20km-long Grasset
Ultramafic Complex. 2 metallurgical holes from Horizon 3 Central zone are expected in Q3/15 and completed
ground I.P. should assist in defining other targets along the Grasset Ultramafic Complex with more drilling to
resume in the next months and followed by additional drilling along the Bug Lake Gold Trend by Q3 2015.
Balmoral remains very active.
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