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Update on Exploration Activities of Balmoral Resources

Balmoral Resources Ltd. has provided an update on the fall 2018 exploration program on its Detour Gold Trend Project in Quebec, together with updates on activities on its other exploration properties in Quebec and Ontario, Canada.

(Credit: Balmoral Resources Ltd.)

Grasset Ultramafic Complex Drill Program (Nickel-Copper-Cobalt-PGE)

Drilling is being carried on with two drills still active on Balmoral’s Grasset and Fenelon properties in Quebec targeting nickel-copper-cobalt-platinum-palladium mineralization within the Grasset Ultramafic Complex (GUC). One drill is actively working to expand the Grasset nickel-copper-cobalt-PGE deposit, which now features an open-ended Indicated Mineral Resource estimate of 3.45 Mt @ 1.56% nickel, 0.17% copper, 0.03% cobalt, 0.34 g/t platinum and 0.84 g/t palladium.

The Grasset deposit has been delineated to a vertical depth of just over 500 m, below which it remains open for expansion. Approximately 2,500 m of drilling has been finished thus far as part of the 2018 resource expansion program at Grasset. This includes a >1,000 m long ‘pilot’ hole whose main purpose is to serve as a platform for the assessment of the Grasset deposit at vertical depths of 500 to 750 m via a series of wedge cuts.

Six to seven kilometers northwest of the Grasset deposit Balmoral has five holes have been completed, totaling 2,900 m, testing a series of targets within both extrusive and intrusive phases of the GUC. Preliminary borehole electromagnetic work on several of these holes has successfully defined EM conductors directly—or interpreted to be—related with recently identified zones of sulfide mineralization. These anomalies are high priority targets for additional drill testing.

Preliminary analytical results from the GUC drill program are expected within the following three to four weeks. The present drill program will continue into late November before pausing to allow for the conclusion of logging in the area being investigated. The planned logging activities will boost the company’s access for follow-up drilling.

Detour East Property (Gold)

On the Detour East property, Balmoral reported that it has identified the extension of the Vortex Gold Zone discovered by the Midland Exploration Inc./Soquem Inc. joint venture on the neighboring Casault property. A single drill hole collared about 195 m west of the eastern boundary of the Detour East property has successfully intersected the Vortex Gold Zone Extension, returning a downhole intercept grading 1.60 g/t gold over 7.00 m (from 352 to 359 m down hole) including, 4.01 g/t gold over 0.69 m.

With the verification of the Vortex Extension onto the Detour East property, gold mineralization has currently been traced for 1,600 m across the two properties and remains open to depth and to the west on ground operated by Balmoral. The Vortex Gold Zone appears along the sheared contact between interpreted tholeiitic and calc-alkaline volcanic sequences, directly south of a distinct magnetic horizon which can be traced west across the company’s holdings for no less than 3,500 m. This widespread new zone of gold mineralization occurs within the same regional-scale deformation corridor that hosts the adjacent Detour Lake Gold Mine.

RUM and Gargoyle Properties (Nickel-Copper-Cobalt-PGE)

The airborne magnetic-electromagnetic survey (AEM) of the RUM nickel properties in Quebec has begun. The survey has advanced slowly because of extremely poor weather conditions in the region which seem set to continue in the near term. Up to the present time, approximately 8% of the planned survey has been finished and the Balmoral has not received any results.

The AEM survey of the recently acquired Gargoyle and Goblin nickel properties in Ontario is due to begin on or about November 12th, 2018. The commencement of this survey is also dependent on weather conditions.

Northshore Joint Venture (Gold)

Balmoral has been advised by the operator of the Northshore property joint venture, GTA Resources and Mining Ltd. that a 1,000+ meter diamond drill program is set to start on the Northshore property located near Schreiber, Ontario. The first two holes planned are designed to assess the Afric Gold deposit on the property at or below the 350 m vertical level, which will signify the deepest tests of the deposit so far.

Taking into consideration the limited scope of the drill program, and minor dilution to its current 46% joint venture interest which will result, Balmoral has elected not to contribute to this program. Results from the program are expected in early 2019.

Hwy 810 Property (Gold and Base Metals)

The earlier disclosed geophysical program on the Hwy 810 property has been finished. Induced polarization anomalies were detected on all five grids surveyed, several of which correlate with airborne EM anomalies and/or interpreted structural corridors on the property. The surveyed areas, which contain either gold or base metal targets, are at present drill ready. Balmoral may carry on with primary drill testing of the Hwy 810 property in 2019, or seek a partner to aid in the progress of this large property, which is strategically situated between the producing Casa Berardi gold mine and the former producing Selbaie zinc-copper-gold silver mine in Quebec.

Sale of Fenelon Mine Property Royalty

The sale of the 1% NSR royalty held by the Balmoral on the Fenelon Mine Property in Quebec, stated on October 10, 2018, has been finalized. Balmoral received a cash payment of $500,000 as well as 1,000,000 common shares of Ely Gold Royalties Inc. and common share purchase warrants which the company may, at its discretion, exercise over a period of 18 months from November 2nd, 2018 to obtain up to an additional 1,000,000 common shares of Ely Gold Royalties Inc. at a price of $0.10 per share.

Qualified Persons

Mr. Michael Tucker (P. Geo. B.C., Ont. and Restricted Permit, Que.), Project Geologist for the Company, is the non-independent qualified person for the technical disclosure concerning the Grasset and Fenelon properties in this release. Mr. Tucker is presently supervising the fall 2018 drill program on those properties and has worked on the Grasset and Fenelon properties since 2014. Mr. Darin Wagner (P.Geo. B.C., Ont. and Restricted Permit, Que.), President and CEO of the Company, is the non-independent qualified person for the balance of the technical disclosure contained in this news release. Mr. Wagner has supervised the Company’s exploration activities since the beginning. Both persons have reviewed the technical content of this release.

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