Introduction

On May 25, 2016 Balmoral announced that it had entered into a Letter of Intent to sell the Discovery Zone Property, a sub-division of the larger Fenelon Property hosting the Discovery Gold Zone, to Wallbridge Mining Limited. The sale of the Discovery Zone Property is expected to be completed prior to September 25, 2016. The lower map at right shows the Discovery Zone Property relative to the larger Fenelon Property and Balmoral's regional land holdings.

Advanced Exploration - Gold - Detour Gold Trend Project, Quebec

  • Centrally located within the Company's Detour Trend Project, approximately 65 kilometres east of the Detour Gold Deposit,
  • The Fenelon Property hosts the Discovery Gold Zone which is comprised for several high-grade gold bearing veins hosted by an ultramafic sill.
  • The Discovery Gold Zone extends for a minimum of 160 metres along strike and to vertical depths of over 250 metres. Over 95% of the drilling to date has been above 125 metres vertical depth. It remains open to depth.
  • Historic work on the Zone has included bedrock stripping, underground access and construction of two shallow vertical drifts and metallurgical testing (95%+ recoveries)
  • Drilling along the projected trend of the UM host sequence has intersected a number of occurrences of gold mineralization
  • Recent work by Balmoral suggests this sill may be related to the larger Grasset Ultramafic Complex (“GUC”) which hosts the Company’s nearby H3 Ni-Cu-PGE discovery
  • Drilling by Balmoral in early 2015 identified several occurrences of Ni-Cu-PGE mineralization on the Fenelon Property within the GUC and also discovered a new high-grade gold occurrence which returned 216 g/t gold over 0.76 metres along the basal margin of the GUC, a Discovery Zone type setting
  • Balmoral owns a 100% Interest in the Fenelon Property; certain portions of the Property are subject to underlying royalties

Gold Potential

The Fenelon Property has demonstrated potential to host high-grade mesothermal gold mineralization (Discovery Gold Zone, recent discovery near base of GUC). The southern portion of the Property straddles the Sunday Lake Deformation Zone, host to the multi-million ounce Detour Gold deposit) for over 10 kilometres. Proximity to regional gold-bearing deformation zones of this nature is key to the discovery of gold mines throughout the Abitibi. A number of other gold occurrences are known from drilling on the Property and the discovery potential remains high.

Base Metal Potential

Magmatic Ni-Cu-PGE

The eastern margin of the Fenelon Property covers a series of highly magnetic rocks, beneath extensive overburden cover, which are interpreted to be the northwestern extension of the Grasset Ultramafic Complex (“GUC”). The GUC hosts Balmorals’ H1 and H3 Ni-Cu-PGE discoveries on the adjacent Grasset Property. Drilling by Balmoral in 2015 demonstrated the presence of similar mineralization on the Fenelon Property up to 8.3 km northwest of the H3 Zone. The property is thus considered to be very highly prospective for additional Ni-Cu-PGE discoveries and the expansion of the recently discovered zones of mineralization.

Cu-Zn-Ag-Au VMS Mineralization

The third largest felsic volcanic complex known in the region, after the productive Selbaie and Mattagami VMS camps, is located on the Fenelon and adjacent Jeremie and Grasset Properties. Work by a predecessor company in 2006-07 identified a number of occurrences of Cu-Zn-Ag-Au mineralization within this felsic volcanic sequence which is locally cut by the GUC. To date Balmoral has not concentrated on this style of mineralization but in targeting nickel mineralization within the GUC has discovered significant sulphide accumulations in the felsic sequence of possible VMS origin.