Big Picture – A Deep Dive Examination of Balmoral Resources
Balmoral Resources Snapshot
What Does the Value Equation Look Like in Today's Mining Sector?
For several years now the mineral exploration and development business, along with the mining sector as a whole, has faced difficult headwinds brought on, in part, by the excesses of the lofty heights reached between 2005 and 2010. In the gold sector a focus on "ounces produced" vs. profits produced led to the exposure of investors to poor quality (typically lower grade), high ounce count assets, often in high risk jurisdictions.
Balmoral, like its predecessor companies, is focused on the discovery and delineation of high quality (read higher grade, higher potential margin) assets in proven, low political risk mining districts. We focus solely in jurisdictions where there is a district premium, rather than a jurisdictional discount to valuation, places where producing companies want to operate. Our team has a strong geological bias to those mining districts which have an extensive history of producing high-margin/profit assets, regions on the low end of the exploration and development cost spectrum and on the assembly of larger, "district scale" exploration opportunities.
Thus our current, singular focus on the Abitibi greenstone belt in the Canadian province of Quebec. Outside the Witwatersrand Basin in South Africa no other area on Earth has generated as much wealth from the extraction of gold ores as has the Abitibi. With historic production now exceeding 130 million ounces of gold the Abitibi is renowned for high-grade gold deposits which exhibit tremendous vertical continuity, high profit margins and well understood "big picture" controls. Add to that an exceptional secondary endowment of base metal and specialty metal opportunities and you will find that most the world's major mining companies are currently or have been active in the Abitibi.
Balmoral follows a time tested and proven model of aggressive, drill focused exploration driven by the latest geophysical techniques, geochemical methods and geological models. Our success in identifying several promising mineral discoveries in a belt which has been extensively explored for over a century speaks both to the incredible mineral endowment of the belt and the excellent work done by our exploration team.
All of our hard work and success in the field means nothing however without the ability to communicate with the investing public and our shareholders. We pride ourselves in our ability to clearly and concisely communicate with our shareholders and to create value through the exploration process. We continue to work hard to expand our shareholder base and to expose the Company to new markets and opportunities. We can promise a solid effort on all fronts as we move forward.
So what does the value equation look like:
World Class Geological Potential + Low Political Risk + Sound Geological Sleuthing + Hard Work + Outstanding Shareholder Support + A Pinch of Luck = the Discovery of High Quality Mineral Deposits = the Creation of Shareholder Value
Advanced Exploration - Gold - Detour Lake Area, Quebec
Centrally located within the Company's Detour Trend Project, approximately 45 kilometres east of the Detour Gold Deposit, and a similar distance north of Hecla's Casa Berardi gold mine.
The Martiniere gold system features a number of typically high-grade, gold-bearing structural zones. The two largest gold-bearing trends identified to date are the Bug Lake Trend, the current focus of activities, and the Martiniere West Zone Trend.
The Bug Lake Trend extends for a minimum of 1,200 metres in a north-south direction and to vertical depths of over 400 metres. It remains open to the south and to depth on all section lines. The Bug Lake Trend features a number of sub-parallel, steeply dipping gold zones including the bonanza grade Footwall Zone.
The Martiniere West Trend can be traced for over 700 metres along strike and features the high-grade West Zone which has been intersected from surface to vertical depths of over 300 metres. Several additional occurrences have been intersected along this trend.
Central Zone - Initially discovered by Cyprus Canada the Central Zone consists of several high-grade intercepts located approximately 300 metres along projected strike from the West Zone along the West Zone Trend.
ME-16 Zone and other discoveries - The ME-16 Zone is defined by a series of holes which represent the most easterly tests of the Martiniere Gold System completed to date. It is one of several high-grade vein zones on the Property which await additional follow-up testing.
The vast majority of the 9.5 x 7.0 kilometre Martiniere Property remains untested.
Balmoral owns a 100% Interest in the Martiniere Property.
Balmoral is in the process of defining an important new high-grade gold-bearing system on the Martiniere Property. To date the Company has intersected gold mineralization along two major structural trends -- the Bug Lake and Martiniere West Trend -- which in aggregate extend for over 1,900 metres along strike and to depths of over 400 vertical metres. Both trends remain open to depth.
Gold mineralization on the Martiniere Property is typical of gold deposits throughout the Abitibi region of Ontario and Quebec. It exhibits a strong element of structural (shear/fault) control, is gold dominant with only minor associated silver mineralization, demonstrates a strong association with certain lithologies or lithological contacts and, to date, demonstrates significant vertical continuity. The vast majority of the large gold deposits in the Abitibi have vertical dimensions which exceed their horizontal dimensions - often by a factor of 3 or 4:1. Several deposits have been mined to vertical depths exceeding 1,000 metres at average grades in the 7-8 g/t range. The Martiniere Gold System is located in an area of complete overburden cover which has historically hidden it from the prying eyes of prospectors and explorers.
The Bug Lake Trend, discovered by Balmoral in 2012, features several sub-parallel gold-bearing zones located along an early, and frequently re-activated north-south oriented fault system. Similar to deposits throughout the Abitibi region this discovery is characterized by high gold grades, variable widths and strong silica-carbonate alteration. The Bug Lake Trend remains open for expansion but has been traced thus far across 1,200 metres of strike length and to vertical depths of over 400 metres. Current testing is focused on delineating the shallow potential of the system before progressing with additional deeper testing. Its scale and grade make Bug Lake the largest gold system along the Detour Trend and an important asset for the Company.
Located 600 metres west of the central portion of the Bug Lake Trend the West Zone is a second prominent, high-grade gold-bearing feature. Originally discovered by Cyprus Canada in the late 1990's Balmoral has now drill-defined the West Zone for 400 metres along strike and to vertical depths of over 300 metres. The West Zone sits in a separate structural zone from Bug Lake. This shear zone also hosts a number of gold occurrences on the Property which warrant additional examination.
In addition to these two better defined zones of gold mineralization Balmoral has identified at least 10 other prominent gold occurrences on the Martiniere Property, the most recent of which is some 2.0 kilometres east of any previous gold-bearing intercepts. In addition, the historic Norbug gold occurrences, located over 3.0 kilometres northeast of the core of the Bug Lake Trend suggest the presence of a large gold-bearing system in the greater Martiniere area, only a small portion of which has been tested to date.
Base Metal Potential
In 2011 Balmoral reported the discovery of a volcanogenic massive sulphide ("VMS") system on the Martiniere Property. VMS systems similar to the one discovered at Martiniere are globally important suppliers of copper and zinc and can also contain significant gold, silver and lead as well as recoverable quantities of other metals. Drilling in the winter of 2015 (see NR15-05, Apr. 20, 2015) intersected semi-massive sulphides believed to be associated with this discovery which reported copper, zinc, gold and silver assay results of potential economic interest.
Immediately to the south of the Martiniere Property is the former producing Selbaie deposit which produced 53 million tonnes of ore at average grades of 1.0% copper, 1.9% zinc, 41 g/t silver and 0.6 g/t gold. The Mattagami VMS camp, which hosted a number of productive VMS deposits including the currently producing Bracemac-MacLeod deposit, sits in the same geological domain approximately 100 kilometres to the east, just southeast of the Company's Grasset Property.
In addition to the recent Cu-Zn-Ag-Au results, and the development of weakly anomalous gold mineralization throughout the dominantly iron (pyrite) rich Martiniere East VMS system Balmoral has intersected (see drill hole MDE-11-09 -- NR11, Dec. 5, 2011) intersected a narrow, strongly brecciated interval near the upper margin of the Martiniere East VMS system which returned 74.60 g/t gold and 1,390 g/t silver along with strongly elevated copper, zinc, cadmium and tungsten. This intercept suggests potential within this system, and potentially in association with other as-yet-undefined systems elsewhere on the property, for the discovery of a polymetallic VMS discovery.
To learn more about Balmoral projects click here
President, CEO & Director
Mr. Wagner is a Professional Geologist with 25 years of exploration and corporate development experience. Mr. Wagner spent the first 10 years of his career with two of Canada’s largest and most successful exploration and mining companies (Noranda (now Glencore) and Cominco (now Teck)) as a project geologist and manager in North and South America.
In 1999 Mr. Wagner became Vice-President, Exploration for New Millennium Metals Corp. which was successfully merged with Platinum Group Metals Ltd. in 2002. Mr. Wagner served as Exploration Manager for TSX listed Platinum Group Metals through the acquisition, discovery and initial delineation of the multi-million ounce West Bushveld PGE deposit in South Africa.
Mr. Wagner became President of Sydney Resource Corp., in September 2005 and helped engineer the successful merger between Sydney and Band Ore Resources to form West Timmins Mining Inc. in 2006. He then served as a President, CEO, Director and Qualified Person for West Timmins Mining through the discovery of the high-grade Thunder Creek Gold Zone in Timmins, Ontario and the acquisition of West Timmins by Lake Shore Gold in an all share deal valued at $424 million which was completed in November of 2009.
Mr. Wagner and the Balmoral team have been twice recognized as the Explorers of the Year in Quebec for Balmoral’s Martiniere and Grasset discoveries. Mr. Wagner and the team at Platinum Group Metals were awarded the NWOPA Explorer of the Year Award in 2004 for the Seagull Pt-Pd discovery near Thunder Bay, Ontario. In addition to his duties with Balmoral Mr. Wagner currently serves on the Board of Directors of Newcastle Gold and is co-founder Falco Resources
Chief Financial Officer
Ms. Wu has served as an advisor to the Company on financial matters since 2011. She is a Chartered Professional Accountant with strong working knowledge of International Financial Reporting Standards, Canadian and US Generally Accepted Accounting Principles and public company reporting requirements. She is currently the CFO for Indico Resources Ltd. and Corvus Gold Inc., resource based companies listed on the TSXV and TSX. Ms. Wu’s previous experience includes acting as Financial Reporting Specialist for a number of resource based companies including Balmoral. As well, she served as Supervisor at Smythe Ratcliffe LLP, Chartered Accountants from 2007 to 2010, where she oversaw all aspects of financial reporting for several publicly traded companies.
Ms. Chipperfield has 12 years experience in regulatory filing and compliance for public companies in the resource sector. As corporate secretary for the Company, Ms. Chipperfield ensures that the Company is in compliance at all times with all securities filing requirements, is up to-date with latest corporate governance practices and maintains the corporate records of the Company. Ms. Chipperfield was involved with West Timmins Mining at the time of its acquisition by Lake Shore Gold in a deal valued at $424 million which was completed in November of 2009. Ms. Chipperfield is also a member of the Canadian Society of Corporate Secretaries.
Vice President, Exploration
Mr. Mann has over 16 years experience in the mineral exploration industry and has served with Balmoral Resources as V.P. Exploration and Exploration Manager since initiation of Quebec exploration in early 2011. Prior to his work at Balmoral he held positions for Barrick Gold Corporation, where he was led exploration efforts on and around the world-class Porgera gold deposit in Papua New Guinea and Barrick Gold’s Canadian project development and exploration team. He has also held exploration positions in Canada with Cominco Ltd. and the Hope Bay/Miramar joint venture. During his career Mr. Mann has gained extensive experience exploring for a wide range of base and precious metal mineral deposit styles in active mine to extremely remote grassroots environments. Mr. Mann is responsible for day to day management of Balmoral’s exploration programs and is part of Balmoral’s project evaluations team.
Vice President, Corporate Development
Mr. Foulkes has over 20 years of experience as both a successful explorer and manager of corporate development and investor relations programs for Canadian and US public companies. During this time he has helped raise over $120M for mineral exploration and development projects around the world.
Mr. Foulkes’ most recent corporate activities included managing the corporate development and investor relations programs of Candente Copper, Platinum Group Metals, and MAG Silver. He also served as the Manager of Corporate Development, and was actively involved in the investor relations programs for West Timmins Mining prior to their 2009 acquisition by Lakeshore Gold.
Before his corporate roles, Mr. Foulkes had a notable seven year career in mineral exploration, including leading the teams that discovered the Jericho and Gahcho Kué diamond mines in the Canadian Arctic. He holds Bachelor degrees in Geology and Education from the University of British Columbia.
Balmoral Resources Ltd.
Suite 1750-700 West Pender St
Vancouver, British Columbia
Canada V6C 1G8
North American Toll-Free:
Vice President, Corporate Development
Email: [email protected]
Vice President, Exploration
Email: [email protected]
Email: [email protected]