Gold and Nickel-PGE Mineralization

The initial focus of exploration on the Grasset Property is the 20+ kilometre long section of the Sunday Lake Deformation Zone which crosses the Property and a similar stretch of the Lower Detour Deformation Zone which crosses the southern portion of the Property. The Sunday Lake Deformation Zone hosts the 20+ million ounce Detour Gold Deposit 80 kilometres to the west and is one of four principal regional scale fault system which cuts across the Abitibi greenstone belt in Quebec.

Gold Mineralization

Initial testing of the Sunday Lake Deformation Zone in 2011 intersected a promising zone of quartz-carbonate vein hosted gold mineralization. Hosted with mafic intrusive rocks immediately north of the contact between the mafic intrusive and a sequence of strongly deformed polylithic "Timiskaming-type" conglomerates which returned an average grade of 1.66 g/t gold over 33.00 metres including two high grade sections grading 6.15 g/t gold over 4.40 metres and 4.18 g/t gold over 5.00 metres. The location and style of mineralization is similar to that associated with a number of gold deposits in the Timmins and Val d'Or gold districts to the South.

Follow-up drilling in the immediate vicinity of the Grasset Gold discovery indicated the presence of an anastomosing quartz-carbonate vein system along this contact which appears to increase in intensity to depth. Additional drilling is warranted to test this discovery at depth and to continue to test the northern contact of the Sunday Lake Deformation Zone across the Property.

Nickel-Copper-PGE Mineralization

Following the discovery of the gold mineralized zone above Balmoral conducted broadly spaced drilling (500 metre centres) along the northern contact of the Sunday Lake Deformation Zone proximal to the discovery. One of these holes, GR-12-09, located approximately 1,000 metres east of the Grasset gold discovery, intersected an ultramafic intrusive on the north side of the Sunday Lake Deformation Zone. Disseminated pyrrhotite-penlandite and minor chalcopyrite mineralization occurs over approximately 15 metres at/near the base of the ultramafic and hosts nickel-copper-platinum-palladium mineralization which is interpreted to be magmatic in character.

Analysis of the sulphide bearing section within the ultramafic returned an intercept of 0.51% Ni, 0.09% Cu, 0.15 g/t Pt and 0.33 g/t Pd over 9.17 metres including a high-grade interval of 1.34% Ni, 0.17% Cu, 0.16 g/t Pt and 0.54 g/t Pd. This mineralized zone occurs at the southern termination of a 1,000 metre long magnetic trend interpreted to represent the ultramafic intrusion.

Follow-up geophysical work completed in the fall of 2013 from the location of the discovery for 1,200 metres to the northeast along the trend of the magnetic anomaly and a near coincident airborne EM anomaly outlined a strong chargeability anomaly increase in intensity from the area of the discovery. The chargeability anomaly is associated with a zone of low resistivity/moderate conductivity over most of its length. This anomaly corresponds nicely with the airborne EM anomaly and is a high priority drill target for the Company.

With anomalous nickel-copper-PGE mineralization known for over 8.5 kilometres within the Grasset-Fenelon volcanic sequence, and very limited drilling along this trend or to the north, there is a large enough volume of ultramafic magmatic activity to have generated a nickel deposit of scale. It must also be remember that the southern portion of this sequence is terminated by the Sunday Lake deformation zone and that strongly magnetic rocks to the east of the discovery are virtually untested by drilling.

The presentation below outlines the nickel-copper-PGE target on the Grasset Property.

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