Balmoral's Positive Drill Results Lead to Resource Estimate Target Increase

Drilling at Balmoral Resources’ Bug South gold deposit continues to return high-grade gold mineralization, leading one analyst to increase his estimated resource target at Martiniere.

Balmoral Resources Ltd. (BAR:TSX; BALMF:OTCQX) reported this morning that drilling at the Bug South gold deposit at its Martiniere property in Quebec “continues to return broad intersection of high grade gold mineralization and show good continuity between sections.”

The results have been well received by analyst Philip Ker of PI Financial. In a Jan. 23 research report, Ker stated, “Step-out drilling along the Bug Lake gold trend has been successful on various fronts in results delivered thus far from Balmoral’s fall drilling campaign. Today’s assays continue to confirm good continuity in mineralization at Bug South which exhibited increasing thicknesses from 5.83 – 88.36m.” In addition, he noted, “Balmoral also intersected a new zone of zinc-lead-silver-gold veining that has been relatively undefined across the Martiniere property. . .The current origin and relationship of this new mineralization is unknown at this time. However, further results from the fall program are anticipated in the coming weeks along with Balmoral commencing its winter exploration campaign.”

Ker also noted that the winter exploration program, which is fully funded, should begin in the coming weeks: “The winter season will include ~7,500-8,000m of drilling dominantly across the Bug Lake targets with specific holes designed for infill drilling to support data required for a maiden resource estimate.”

His conclusion on results released today: “Impact: Positive. Continuity and grades supporting to a larger maiden resource,” adding, “after updating our model, we have pushed back our outlook on a start-up operation at Grasset in 2019 to 2021 and re-defined and increased our estimated resource target at Martiniere from 1.25Moz to 2Moz.”

Balmoral released results from seven holes, including hole MDE-16-246B in the Upper Bug …read more

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