Balmoral Resources Ltd. (TSX: BAR) announced drill results this morning from eight core holes at its Northshore Property in Northwestern Ontario. The property was optioned to GTA Resources & Mining Inc. (TSX.V: GTA) in 2011. GTA has agreed to fund a minimum of $5.5 million in exploration expenditures over five years in exchange for a 70% interest in the property.
Results from this morning’s news release represent drilling completed within the Afric Gold Zone of the Northshore property, where mineralization has now been extended along strike and at depth.
Drill hole WB-12-33 returned 1.37 g/t gold over 68 meters, including 12.16 g/t gold over 4 meters, beginning at a depth of 421 meters. The intercept represents the deepest to date and shows great potential for discovery of further broad zones of mineralization at depth.
Other intercepts of note in the news release included:
Located in the Hemlo-Schreiber greenstone belt of Ontario, the Northshore Property covers five patented and two unpatented mining claims. Noranda Exploration and Cyprus Canada conducted heavy exploration on the property throughout the 1990’s.
Noranda also released a geologic resource estimate (non 43-101 compliant) in 2002 that outlined two million tonnes grading 2.20 g/t gold in the Afric Gold Zone. This zone represents only one of six mineralized areas outlined to date.
Balmoral acquired the property in 2010 and leased it to GTA Resources in 2011. Since becoming project operator, GTA has completed over 8,000 meters of drilling. A fourth phase of drilling it set to commence in February. An initial NI 43-101 resource estimate was released by GTA in early 2012, which can be viewed by clicking here.
Details of the option agreement call for GTA to incur $5.5 million in exploration expenditures over five years, issue 3.5 million shares to Balmoral, and make cash payments totaling $150,000.
Balmoral shares gained nearly 35% in 2012 and are up 7% thus far in 2013. The company is well positioned with over $15 million in cash and multiple drill programs in progress. Focused on making new discoveries in historic districts, Balmoral has been a bright spot in a weak junior resource sector over the last two years.