Highlighted by Discovery of 7.58 metres grading 1.05% Nickel, 0.31% Copper, 0.05% Cobalt, 0.20 g/t Platinum and 0.48 g/t Palladium
Includes a Massive Sulphide Intercept grading 4.14% Nickel, 0.26% Copper, 0.18% Cobalt, 0.81 g/t Platinum and 1.93 g/t Palladium over 0.65 metres
(Vancouver, January 17, 2019) Balmoral Resources Ltd. (“Balmoral” or the “Company”) (TSX: BAR; OTCQX: BALMF) today announced the discovery of numerous nickel-copper-cobalt-PGE sulphide mineralized zones within the central portion of the Grasset Ultramafic Complex (“GUC”) in Quebec. The new discoveries are located 7 kilometres northwest of, and along strike from, Balmoral’s Grasset nickel-copper-cobalt-platinum-palladium deposit (Figure 1). These discoveries reinforce the district scale and multi-deposit potential of the GUC.
Results are highlighted by an intercept of 7.58 metres grading 1.05% nickel, 0.31% copper, 0.05% cobalt, 0.20 g/t platinum and 0.48 g/t palladium from one of three new discoveries, each of which returned greater than 1% nickel, intersected in drill hole FAB-18-58. A massive sulphide intercept returning 4.14% nickel, 0.26% copper, 0.18% cobalt, 0.81 g/t platinum and 1.93 g/t palladium over 0.65 metres occurs at the base of this intercept (Photo 1).
A second intercept, located approximately 100 metres shallower and along the same stratigraphic horizon in drill hole FAB-18-56, returned 1.35% nickel over 3.94 metres, including 3.59% nickel over 1.03 metres with similar copper, cobalt, platinum, and palladium values (see Table 1 below). The central ultramafic (komatiite) volcanic unit that hosts these discoveries remains largely untested on the property.
Follow-up borehole EM work has identified strong conductors associated with these new semi-massive to massive sulphide discoveries in multiple holes. The conductors indicate the potential for additional along-strike, up-dip and down-dip/plunge continuity of the sulphide horizons. Off-hole EM anomalies, indicating the potential for additional massive to semi-massive sulphide discoveries within the host ultramafic volcanic sequence, have also been identified. These geophysical anomalies provide immediate targets for follow-up drilling.
“These new discoveries are a great way to begin our renewed nickel exploration of the GUC, and clearly demonstrate the highly prospective nature of the complex,” said Darin Wagner, President and CEO of Balmoral Resources. “The drill holes announced today have greatly enhanced our understanding of the geology and economic potential of the GUC. The confirmation of Type 1 komatiite hosted nickel sulphide mineralization in the belt opens up exciting new avenues for exploration and significantly broadens the prospective target area on the Fenelon and Grasset properties.”
Table 1: Fall 2018 Results - Fenelon Property
* Reported drill intercepts are not true widths. Insufficient drilling has been conducted in this area to date to determine true widths. All values presented uncapped
** Style or Mineralization Type: 1 = Volcanic Hosted - Type 1, 2 = Sill/Intrusive Hosted - Type 2, 1C = Intrusive Contact Hosted
Geology and Mineralization
Today’s results, along with previous work by Balmoral, has outlined a 950+ metre thick, dominantly bi-modal, ultramafic (komatiite) - felsic (rhyolite and rhyolite tuff) volcanic sequence which is locally intruded by a series of ultramafic (peridotite) sills and late gabbro dykes (Figure 2). Nickel sulphide mineralization is now known to occur at several locations within this thick stratigraphic sequence, as well was within the sills and along the sill contacts. The lithologic sequence, styles of nickel sulphide mineralization, and age of the host rocks are all strongly analogous to the prolific Kambalda nickel camp of Australia, which hosts numerous current and past-producing nickel sulphide deposits.
A short presentation on the GUC and the similarities to deposits in the Kambalda region is available by following this link, and a short summary of komatiite hosted nickel deposits is available at this link.
The new nickel sulphide discoveries announced today provide the first confirmation of Type 1 komatiite hosted nickel sulphide mineralization in the region. This style of nickel sulphide mineralization is hosted by cumulate, peridotite sequences at the base of individual komatiite flow units within a sequence of stacked ultramafic and lesser felsic volcanic flows. This mineralization exhibits classic sulphide segregation/settling textures grading down-sequence from disseminated, through net textured (matrix), to massive sulphide (Photo 1, Photo 2 and Figure 2). As is the case with most productive systems of this type, the thickest accumulation of nickel sulphide mineralization occurs at the base of the central ultramafic sequence where it comes in contact with - and appears to have thermally eroded - the basement volcanic-sedimentary sequence.
By comparison, the H3 zone of the nearby Grasset deposit (a Type 2 komatiite hosted deposit, see presentation linked above) occurs within the upper portion of an intrusive phase of the GUC, near the top of the currently recognized ultramafic sequence. Similar mineralization to that observed in the H3 Zone occurs in drill holes FAB-15-46 and FAB-15-47 and FAB-18-54 and FAB-18-57 from the current drill campaign over locally broad widths. This series of occurrences may represent the distal expression of a Grasset type deposit located down-plunge within the host intrusive body. This style of mineralization is, within the GUC, characterized by the highest nickel tenors.
Type 1 nickel sulphide mineralization is also evident at the margins of the ultramafic intrusive bodies within the GUC. To date this style of mineralization is best characterized by the H1 Zone of the Grasset deposit and a newly discovered occurrence in drill hole FAB-18-55.
Bore Hole EM Results
Bore hole electromagnetic surveys were completed on the majority of holes completed during the recent program. Numerous in-hole and off-hole conductors were outlined, including strong conductive responses associated with the nickel sulphide/VMS mineralization located at the 200-225 metre down-hole level in holes FAB-18-56 to 58, and with the nickel sulphide mineralization located within the basal portion of the Central ultramafic sequence in the same holes.
The strongest conductor identified was from the surveying of drill hole FAB-18-57. It occurs off-hole to the northwest and along the up-dip projection of the nickel sulphide zone(s) intersected in holes FAB-18-56 and FAB-18-58. Hole FAB-18-57 intersected a late, high angle gabbro dyke along the projected trend of the mineralization. The observed anomalies are currently interpreted to indicate both up- and down-dip continuity of the nickel sulphide mineralized horizons and provide high-priority targets for follow-up drilling.
The geophysical program also confirmed observations that the ultramafic volcanic components of the GUC exhibit significantly weaker magnetic signatures than the intrusive phases of the complex, which the Company has mainly targeted to date. As a result they are virtually indistinguishable from the mafic and local felsic volcanic lithologies with which they are interlayered regionally. This opens up the potential for the komatiite sequence to be much more laterally extensive than previously recognized, and for it to extend much further along strike to the northwest, and to higher stratigraphic levels to the southwest, than previous interpreted. Both of these areas have seen very limited historic drill testing.
- Balmoral’s drilling has identified multiple new nickel sulphide zones within the GUC, 7 kilometers along strike to the northwest from the Grasset deposit
- Nickel sulphide intercepts range from 0.31% to a high of 4.14% nickel with elevated to strongly elevated cobalt, copper, platinum, and palladium values and occur in at least three distinct geological settings within the GUC.
- Type 1 komatiite hosted nickel sulphide mineralization has been confirmed for the first time in the belt, increasing the potential for additional discoveries
- BHEM anomalies associated with intersected sulphide mineralization provide high-priority follow-up targets
- The ultramafic sequence has proven to be much thicker and potentially laterally extensive than previously recognized
- Strong analogies between the GUC and globally significant komatiite hosted nickel sulphide camps have been confirmed.
- Additional results from 5 drill holes, targeting expansions to the Grasset deposit, should be finalized within the next 2-3 weeks. These results will include the deepest drill test of the Grasset system to date.
Mr. Michael Tucker (P. Geo. B.C., Ont. and Temporary Permit, Que.), Project Geologist for the Company, is the non-independent qualified person for the technical disclosure concerning the Fenelon property in this release. Mr. Tucker supervised the fall 2018 drill program described herein and has worked on the Grasset and Fenelon properties since 2014. Mr. Darin Wagner (P.Geo. B.C., Ont. and Restricted Permit, Que.), President and CEO of the Company, is the non-independent qualified person for the balance of the technical disclosure contained in this news release. Mr. Wagner has supervised the Company’s exploration activities since inception. Both individuals have reviewed the technical content of this release.
About Balmoral Resources Ltd. - www.balmoralresources.com
Balmoral is a 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.
On behalf of the board of directors of
BALMORAL RESOURCES LTD.
President and CEO
John Foulkes, Vice-President, Corporate Development
Tel: +1 (604) 638-5815 / Toll Free: +1 (877) 838-3664
This press release contains forward-looking statements and forward-looking information (collectively, “forward looking statements”) within the meaning of applicable Canadian and United States securities laws. All statements, other than statements of historical fact, included herein, including statements regarding the nature and potential of certain zones of mineralization, the utility and usefulness of certain geophysical surveys, the correlation of geophysical anomalies to mineralization of interest to the Company, the assay results from sulphide or other mineralization intersected in on-going drilling and anticipated results and timing of the Company’s exploration programs in general are forward-looking statements. Forward-looking statements are typically identified by words such as: believes, expects, anticipates, intends, estimate, postulate and similar expressions or are those which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, there can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results may differ materially from those in forward-looking statements. Important factors that could cause actual events and results to differ materially from the Company’s expectations include those related to the mineral tenor of mineralization intersected on the properties, the success or failure of the geophysical contractors to survey individual drill holes and interpret the results from the surveys, factors relating to weather, staffing and costs which may be beyond the control of the Company, metal prices and economic considerations related to mining and exploration, access to financing to continue the Company’s exploration activities and the financial stability of the other companies mentioned and the market fluctuations in prices for securities of exploration and mining stage companies. Trading in the securities of the Company should be considered highly speculative.All of the Company’s public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the latest technical reports filed with respect to the Company’s mineral properties.
This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.