Introduction

Advanced Exploration - Gold - Detour Lake Area, Quebec

  • Centrally located within the Company's Detour Gold Trend Project, approximately 45 kilometres east of, and along geological trend from, Canada`s second largest gold deposit -the Detour Gold Mine, and a similar distance north of the Hecla’s high-grade Casa Berardi gold mine.
  • The Martiniere gold system features a number of, typically high-grade, gold bearing structural zones. These include the Sunday Lake deformation zone (which hosts the Detour Gold Mine), the Bug Gold Trend, the Martiniere West Trend and the recently discovered Lac Du Doigt fault system.
  • The Bug Gold Trend extends for a minimum of 1,800 metres in a roughly north-south direction and high-grade gold mineralization has been intersected to vertical depths of over 740 metres. The trend features three deposits – Bug North, Bug South, Bug Lower Steep – which sub-crop and plunge parallel to each other to the south-southeast. All three are currently open for expansion and the current focus of resource delineation drilling.

  • The Martiniere West Trend can be traced for over 700 metres along strike and features the high-grade Martiniere West Deposit which has been intersected from the bedrock surface to vertical depths of over 300 metres. Several additional occurrences have been intersected along this trend.

  • Central Zone - Initially discovered by Cyprus Canada the Central Zone consists of several high-grade intercepts located between the Martiniere West Deposit and the Bug Deposits.
  • Martiniere East Area – Drilling east of the Bug Gold Trend his identified a series of, commonly high-grade gold zones and occurrences including the ME16, ME23 and recent Horsefly discoveries which highlight the continued exploration potential of the Martiniere system.

  • In 2015 Balmoral conducted the first testing of the Lac du Doigt (`Finger Lake``) fault system and to date has identified gold mineralization within this east-west trending feature across 750 metres. This mineralization is open in all directions and a high-priority exploration target based on analogies to other gold camps in the Abitibi region.

  • The vast majority of the 9.5 x 7.0 kilometre Martiniere Property remains untested

  • Balmoral owns a 100% Interest in the Martiniere Property

Gold Potential

Balmoral is in the process of defining an important new, high grade gold bearing system on the Martiniere Property. To date the Company has intersected gold mineralization along four major structural trends – the Sunday Lake, Bug, Lac du Doigt and Martiniere West Trends. Within the Bug Lake system high-grade gold mineralization has been intersected to a depth of 740 vertical metres, confirming that this system, like so many in the Abitibi region has potential to extend to considerable depths.

Gold mineralization on the Martiniere Property is typical of gold deposits throughout the Abitibi region of Ontario and Quebec. It exhibits a strong element of structural (shear/fault) control, is gold dominant with only minor associated silver mineralization (typical gold/silver ratios are in the range of 1:1 to 1:3), demonstrates a strong association with certain lithologies or lithological contacts and, to date, demonstrates significant vertical continuity. The vast majority of the large gold deposits in the Abitibi have vertical dimensions which exceed their horizontal dimensions - often by a fact of 3 or 4:1. Several deposits have been mined to vertical depths exceeding 1,500 metres at average grades in the 7-8 g/t range. Unlike many Abitibi systems however the Bug Lake deposits exhibit a broad envelope of gold mineralization around the higher grade core which may provide an option for early, low cost open pit entry into the system.

The Martiniere Gold System is located in area of complete overburden cover which has historically hidden it from the prying eyes of prospectors and explorers. However since its first drill holes in 2011 Balmoral has successfully applied modern exploration technologies in the search for gold at Martiniere. With several deposits in delineation and new gold discoveries emerging from virtually every drill program Martiniere has continued to evolve into a flagship asset with exciting upside. It is now the second largest gold system along the Detour Gold Trend and typically exhibits grades well in excess of the operating Detour Gold Mine 45 km to the west.

The Bug Lake Trend, discovered by Balmoral in 2012, features several, sub-parallel gold bearing deposits located along an early, and frequently re-activated north-south oriented fault system. Similar to deposits throughout the Abitibi region this discovery is characterized by high-gold grades, variable widths and strong silica-sericite-carbonate alteration. The Bug Lake Trend remains open for expansion but has been traced thus far across 1,800 metres of strike length and to vertical depths of over 740 metres. Current testing is focussed on delineating the shallow potential of the system before progressing with additional deeper testing.

MDE-14-143 Bug Lake North Deposit, Footwall Zone
Gold Smeared on Outside of Core

Outside the Bug Gold Trend the Company has identified, through drilling, no fewer than 20 additional gold zones/occurrences include the Martiniere West deposit and the recent high-grade Horsefly discovery. Gold on the property is found in several different lithologies and in several different structures located between the east-west trending, parallel Lac du Doigt and Sunday Lake faults.

The summer of 2017 will see testing of several new target areas within the broader Martiniere Property as the Company looks to build overall potential within the Martiniere system while advancing the known deposits toward their initial resource estimates and economic evaluations.

Base Metal Potential

In 2011 Balmoral reported the discovery of a volcanogenic massive sulphide ("VMS") system on the Martiniere Property (Martiniere East VMS). VMS systems similar to the one discovered at Martiniere are globally important suppliers of copper and zinc and can also contain significant gold, silver, lead as well as recoverable quantities of other metals. Drilling in the winter of 2015 (see NR15-05, Apr. 20, 2015) intersected semi-massive sulphides believed to be associated with this discovery which reported copper, zinc, gold and silver assay results of potential economic interest. As well the Company intersected a strongly brecciated interval at the upper margin of the Martiniere East VMS system which returned 74.60 g/t gold and 1,390 g/t silver along with strongly elevated copper, zinc, cadmium and tungsten (see drill hole MDE-11-09 – NR11, Dec. 5, 2011).

Immediately to the south of the Martiniere Property is the former producing Selbaie deposit which produced 53 million tonnes of ore at average grades of 1.0% copper, 1.9% zinc, 41 g/t silver and 0.6 g/t gold. The Mattagami VMS camp, which hosted a number of productive VMS deposits including the currently producing Bracemac-MacLeod deposit, sits in the same geological domain approximately 100 kilometres to the east, just southeast of the Company’s Grasset Property.

Second Potential VMS System at Martinere - Alteration Pipe

Exhalative Horizon