Balmoral Releases Initial Resource Estimate For Grasset Ni-Cu-Co-PGE Deposit, Detour Trend Project, Quebec

March 7th, 2016
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(Vancouver, March 7, 2016) Balmoral Resources Ltd. (“Balmoral” or the “Company”) (TSX: BAR; OTCQX: BALMF) today reported the initial resource estimate for the Company’s Grasset Ni-Cu-Co-PGE deposit. The Grasset deposit is located on the Company’s wholly owned and royalty free Grasset Property, part of the Detour Trend Project in West-Central Quebec.

The Grasset deposit is comprised of the sub-parallel H3 and H1 zones. The H3 zone has been intersected from the bedrock surface to a depth of approximately 550 vertical metres and remains open below that level for further expansion. The H1 zone, targeted by considerably less drilling to date, has been intersected for over 1,000 metres along strike and to a vertical depth of 450 metres. It remains open along strike to the northwest and to depth across its entire strike length.


The initial independent resource estimate for the Grasset deposit has been prepared by Mr. Pierre-Luc Richard (P.Geo., M.Sc.) and Mr. Carl Pelletier (P.Geo., B.Sc.) of InnovExplo Inc. and is summarized below. Mr. Richard and Mr. Pelletier are independent Qualified Persons pursuant to NI 43-101.

At a 1.00% NiEq* cutoff grade the H3 + H1 zones contain a combined resource of:

Indicated Resource – 3.45 million tonnes @ 1.79% NiEq* = 1.56% Nickel, 0.17% Copper, 0.03% Cobalt, 0.34 g/t Platinum and 0.84 g/t Palladium; which equates to 136,279,000 nickel equivalent lbs

Inferred Resource - 91,100 tonnes @ 1.19% NiEq* = 1.06% Nickel, 0.11% Copper, 0.02% Cobalt, 0.20 g/t Platinum and 0.48 g/t Palladium; which equates to 2,393,900 nickel equivalent lbs

  • 99% of the Indicated Resource is contained within the H3 Zone
  • 97.5% of the estimated resources are in the Indicated Category

“The initial resource estimate focusses on the higher-grade central core of the Grasset deposit, which should provide the clearest path to delineation of a potentially viable project. At this tonnage and grade it would represent an opportunity similar in scale (tonnage and metal equivalent grade) to the currently producing Bracemac-McLeod base metal mine 55 kilometres to the east, or to the original (pre-Thunder Creek) Timmins West gold mine which a number of our shareholders will be familiar with” said Darin Wagner, President and CEO of Balmoral. “As demonstrated by the tables below, this higher grade central core is surrounded by a larger volume of nickel sulphide mineralization of similar character. As an example, at a cut-off grade of 0.50% NiEq* the Grasset deposit would yield an estimated indicated tonnage of 9.43 mt @ 1.09% NiEq* (see Table 2a below). This larger sulphide mass outlines the potential for possible resource growth through further optimization of the initial resource model parameters (improvements in metallurgical recoveries through more extensive testing, estimated mining costs and evaluation of alternative mining methods, processing/smelting costs, shipping costs, etc.), increases in metal prices/currency exchange ratios from those incorporated into this initial estimate, and/or via additional drilling to expand the higher-grade resource base.”

Table 1 – Base Case Current Resource Estimate

The current mineral resource estimate is based on results from 111 diamond drill holes (39,999metres) completed by the Company since 2014. As indicated below, the base case current resource is reported above a 1.00% NiEq* cutoff grade after incorporation of estimates for mining recoveries, mining dilution, milling recoveries, smelting and refining charges and certain penalties, as well as estimated operating costs based on those associated with mines currently operating in the local region.

Figures 1 and 2 (below) show the grade shell block model and the location of the Indicated and Inferred Resources contained in the base case estimate. The majority of the Resources are contained within the steeply plunging core of the H3 zone from surface to a vertical depth of approximately 550 metres. This core zone remains open to depth for potential expansion. Two additional lenses are separated from the main body by localized zones of deformation. More closely spaced drilling in this areas would have the potential to increase the size of the two secondary bodies.

Tables 2a and 2b (below) provide an analysis of the volumetric resources at a range of cut-off grades for the combined H3 and H1 zones as calculated by the Qualified Persons. The Base Case Current Resource (>1.00% NiEq* cut-off) is highlighted for comparison.

Table 2a: Indicated Resource at Range of Cut-Off Values

Table 2b: Inferred Resource at Range of Cut-Off Values

Resource Estimate Assumptions and Notes:

  • The Independent and Qualified Persons for the Mineral Resource Estimate, as defined by NI 43‑101, are Mr. Pierre-Luc Richard, P.Geo., M.Sc., and Mr. Carl Pelletier, P.Geo., B.Sc., both of InnovExplo Inc. The effective date of the Estimate is January 12, 2016
  • These mineral resources are not mineral reserves as they do not have demonstrated economic viability.
  • While the results are presented undiluted and in situ, the reported mineral resources are considered to have reasonable prospects for eventual economic extraction.
  • The estimate includes two (2) mineralized zones (Horizon 1 and Horizon 3).
  • Resources were compiled at NiEq cut-off grades of 0.30%, 0.40%, 0.50%, 0.60%, 0.70%, 0.80%, 0.90%, 1.00%, 1.10%, 1.20%, 1.30%, 1.40%, 1.50%, and 2.00%. The base case resource potential is reported at a 1.00% NiEq cut-off grade.
  • Cut-off calculations used: CAD 48.00$ Mining, 6.00$ Maintenance, 10.00$ G&A;, 22.00$ Milling for a total of 86.00$ operating costs. A mining dilution factor of 7.5% was also applied to the cut-off grade calculation.
  • *NiEq = [[(NiGrade(%) x NiCR(%) x NiPayable(%) x NiPrice($)) + (CuGrade(%) x CuCR(%) x CuPayable(%) x CuPrice($)) + (CoGrade(%) x CoCR(%) x CoPayable(%) x CoPrice($))] x 2205 + [(PtGrade(g/t) x PtCR(%) x PtPayable(%) x PtPrice($)) + (PdGrade(g/t) x PdCR(%) x PdPayable(%) x PdPrice($))] / 31.1035 - CrPenalty($)] / (NiPayable(%) x NiCR(%) x NiPrice($) x 2205); where CR(%) is a variable concentrate recovery ratio derived from metallurgical balance study, and Payable(%) is applied on concentrates. Note that a minimum deduction of 0.20% Co was applied on concentrate.
  • NiEq calculations used: USD/CAD exchange rate of 1.14, Nickel price of US$6.56/lb, Copper price of US$2.97/lb, Cobalt price of US$13.00/lb, Platinum price of US$1,302.30/oz, and Palladium price of US$737.20/oz (These are 3-year trailing averages calculated at the effective date); Payable of 70% for Nickel, 75% for Copper, 75% for Cobalt (minimum deduction of 0.20%), 45% for Platinum, and 45% for Palladium applied on expected concentrate based on analysis of available smelting and refining cost parameters
  • Cut-off and NiEq calculations would have to be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, smelting terms, and mining costs).
  • Density values were estimated for all lithological units from measured samples. Density values for the Horizon 1 and Horizon 3 mineralized zones were interpolated from both a measured density database and a correlation database accounting for a selection of metals (Ni, Fe, Co) yielding the best correlation with the measured database.
  • The resource was estimated using GEMS 6.7. The estimate is based on 111 diamond drill holes (39,999.43 m). A minimum true thickness of 3.0 m was applied, using the grade of the adjacent material when assayed, or a value of zero when not assayed.
  • High grade capping was done on raw assay data and established on a per zone basis for Nickel (15.00%), Copper (5.00%), Platinum (5.00g/t), and Palladium (8.00g/t). Capping grade selection is supported by statistical analysis.
  • Compositing was done on drill hole sections falling within the mineralized zones (composite = 1.0 m).
  • Resources were evaluated from drill holes using a 3-pass ID2 interpolation method in a block model (block size = 5 x 5 x 5 m).
  • The Mineral Resources presented herein are categorized as Indicated and Inferred based on drill spacing, geological and grade continuity. Based on the nature of the mineralization, a maximum distance to the closest composite of 50 m was used for indicated Resources. The average distance to the nearest composite is 22.9 m for the Indicated resources and 53.6 m for the Inferred resources.
  • Ounce (troy) = metric tonnes x grade / 31.10348. Calculations used metric units (metres, tonnes and g/t). Metal contents are presented in ounces and pounds.
  • The number of metric tonnes was rounded to the nearest hundred. Any discrepancies in the totals are due to rounding effects
  • The quantity and grade of reported Inferred resources in this Mineral Resource Estimate are uncertain in nature and there has been insufficient exploration to define these Inferred resources as Indicated or Measured, and it is uncertain if further exploration will result in upgrading them to these categories.
  • CIM definitions and guidelines for mineral resources have been followed.
  • The Qualified Persons are not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues, or any other relevant issue, that could materially affect the Mineral Resource Estimate.

Qualified Persons

The Independent and Qualified Persons for the Mineral Resource Estimate, as defined by NI 43-101, are Mr. Pierre-Luc Richard, P.Geo., M.Sc. and Mr. Carl Pelletier, P.Geo., M.Sc. of InnovExplo Inc. They confirm that they have reviewed this press release and that the scientific and technical information is consistent. The Qualified Persons will prepare and deliver to Balmoral a technical report in support of this initial resource estimate. Balmoral will, in accordance with National Instrument 43-101, file the report on SEDAR ( within 45 days of this release. The Company will provide notification once the report has been filed.

Figure 1: Block Model and Grade Distribution for 1% NiEq Cut-Off Grade

Figure 2: Indicated and Inferred Resources Grasset Deposit at 1% NiEq Cut-Off Grade

About Balmoral Resources Ltd. –

Balmoral is a well-funded, Canadian-based company currently focused on the delineation of its high-grade gold discoveries, and on the further expansion of the Grasset nickel-copper-cobalt-PGE deposit on its wholly owned, 700 square kilometre Detour Trend Project in Quebec, Canada. Employing an award winning exploration team, Balmoral has a philosophy of creating value through the drill bit. By focusing our efforts in proven productive precious/base metal belts in one of the world’s pre-eminent mining jurisdictions, Balmoral is following an established formula with a goal of maximizing shareholder value through discovery and definition of high-grade, Canadian gold and base metal assets.

On behalf of the board of directors of


Darin Wagner

President and CEO

For further information contact:

John Foulkes, Vice-President, Corporate Development

Tel: (604) 638-5815 / Toll Free: (877) 838-3664

E-mail: [email protected]

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 economic, metallurgical, mining price/cost estimated here in, potential for any future mining at or production from the companies properties, longer term fluctuations in metal prices, potential for future expansion or further delineation of the H1 and H3 deposits, anticipated exploration programs and expenditures, the discovery and delineation of mineral deposits/resources/reserves, the ability of the Company to expand the stated resource through future exploration and drilling, the timing of the receipt of assay results and resource estimates, the prospective nature of the Company’s land holdings, the potential future viability of the project and assets under discussion, the nature and style of the mineralization discussed and its interpreted continuity, interest of investors in the results generated by the Company’s exploration activities and business and financing plans and trends, are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, 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 weather, equipment and staff availability; performance of third parties; risks related to the exploration stage of the Company’s projects; market fluctuations in prices for securities of exploration stage companies and in commodity prices; and uncertainties about the availability of additional financing; risks related to the Company’s ability to identify one or more economic deposits on the properties, and variations in the nature, quality and quantity of any mineral deposits that may be located on the properties; risks related to the uncertain nature and interpretation of geological and geophysical models, risks related to the Company’s ability to obtain any necessary permits, consents or authorizations required for its activities on the properties; and risks related to the Company’s ability to produce minerals from the properties successfully or profitably. Trading in the securities of the Company should be considered highly speculative. All of the Company’s public disclosure filings may be accessed via and readers are urged to review these materials, including the latest technical reports filed with respect to the Company’s mineral properties.

Cautionary Note Regarding References to Resources and Reserves

National Instrument 43 101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this press release have been prepared in accordance with NI 43-101 and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the “CIM Standards”) as they may be amended from time to time by the CIM.

United States shareholders are cautioned that the requirements and terminology of NI 43-101 and the CIM Standards differ significantly from the requirements and terminology of the SEC set forth in the SEC’s Industry Guide 7 (“SEC Industry Guide 7”). Accordingly, the Company’s disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms “mineral resources”, “inferred mineral resources”, “indicated mineral resources” and “measured mineral resources” are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher resource category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit amounts. The term “contained ounces” is not permitted under the rules of SEC Industry Guide 7. In addition, the NI 43-101 and CIM Standards definition of a “reserve” differs from the definition in SEC Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made, and a “final” or “bankable” feasibility study is required to report reserves, the three-year historical price is used in any reserve or cash flow analysis of designated reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company’s 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.