Balmoral Resources Ltd. (BAR:TSX; BALMF:OTCQX) announced on Feb. 15 that drilling has extended the Bug South gold deposit on the Martiniere Property in Quebec to a depth of 350 vertical meters and it "remains open down-plunge below this level." The company also announced the best intercept to date at the Detour East Property, 40 miles to the west.
Prior to that, Balmoral reported the discovery of a new, near-surface zone of high-grade mineralization on its Martiniere Property, the "fourth new discovery from the summer/fall 2016 drill program." The intercept returned 11.66 meters grading 6.25 g/t gold. According to the company, the "new discovery is located 250 to 300 metres east of the projection of the main Bug Lake Gold Trend in a largely untested area of the property."
The company also announced the commencement of a 25,000-meter drill program for 2017, focusing on the "continued expansion and delineation of the Bug Lake gold deposits and other recent high-grade, near surface gold discoveries on its Martiniere Property."
Darin Wagner, president and CEO of Balmoral, noted, "Our summer/fall 2016 drill program more than doubled the known footprint of the Bug South and Bug Lower Steep gold deposits and continued to extend the Bug North deposit down-plunge. Those results included some of the broadest gold mineralized intercepts from the property to date from our expansion drilling of the Bug South deposit, which is the initial focus of drilling this winter."
The new results have caught the attention of analysts and experts. Analyst Philip Ker of PI Financial noted that Balmoral "continues to hit these high-grade zones while continuing to step-out and better define known mineralized systems at Martiniere." With the discovery, "Balmoral is expanding its mineralized footprint across the property and provides future upside as exploration efforts continue to home in and define the extensive gold system."
Gary Baschuk of PearTree Securities wrote that "the discovery of the new zone we believe is significant and illustrates the potential for additional discoveries between the Sunday Lake Deformation Zone and the Lac du Doigt Fault." Looking ahead, Baschuk stated, "We expect Balmoral to have another year of hits and discoveries as the company gains further insight into the regional and local structural controls and more importantly the subtle controls of the gold mineralization."
Byron King writing in Gold Speculator stated, "Balmoral released more drilling results from the summer/fall exploration program, revealing more gold discoveries at sites named Bug Lake and Detour. The grades are solid and quite commercial. There's definitely mineable ore; it's a question of determining how large the ore body is and then moving to calculate a current resource estimate."
He noted that "Balmoral's steady, focused approach to exploration has yielded a steady stream of news, supporting strong prospects of mineralization for gold, copper, nickel and other valuable elements. . .Looking ahead, Balmoral is cashed up and moving ahead with its winter drilling program. . .Balmoral is an attractive joint venture or takeover target for larger companies that must—sooner or later—add to their resource base."
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1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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