Resource World Magazine

26 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 4 b r o k e r ' s p i c k s S h a y n e N y q u v e s t Balmoral Resources Ltd. [BAR-TSX] has made a significant nickel discovery while looking for gold along its Detour Gold Trend Project. The company controls over 82 km of the Sunday/ Detour Lake deformation zone in northwest Québec. This defor- mation zone is one of the principal gold-bearing fault systems in the Abitibi greenstone belt and is home to the 18+ million ounce Detour Gold deposit. While following up on a promising gold vein discovery, Balmoral intersected a previously unknown occurrence of nickel- PGE mineralization on its wholly-owned Grasset property. The discovery hole intersected 9.17 metres grading 0.5% nickel, 0.1% copper, 0.33 g/t palladium and 0.15 g/t platinum. This included a high-grade interval of 1.34% nickel, 0.17% copper, 0.16 g/t plati- num and 0.54 g/t palladium. The nickel mineralization is located at the very southern end of a 16-km long belt of strongly magnetic mafic-ultramafic rocks. This same rock sequence is known to host similar Ni-Cu-PGE mineralization on Balmoral's Fenelon property located eight km to the northeast. Follow up drilling has intersected numerous intervals of high- grade Ni-Cu-PGE mineralization. The best hole drilled to date, GR-14-25, cut 1.79% nickel, 0.19% copper, 0.42 g/t platinum and 1.04 g/t palladium over 45.28 metres, starting at less than 100 metres vertical depth. This included a 1.11-metre interval of mas- sive to semi-massive sulphide which returned 10.60% Ni, 0.45% Cu, 2.04 g/t Pt and 5.23 g/t Pd. This confirms the potential for very high-grade nickel and PGE values within the system. For simplicity, let's put these nickel assay values into prospec- tive; a 1.79% nickel grade means the rock contains 39.46 lbs of nickel per tonne of rock. At current market prices of US $8.59/lb, this tonne of rock (in the ground) is worth US $339. In terms of an equivalent comparable gold intercept, Balmoral's hole GR-14-25, intersected 7.9 g/t gold over 45.28 metres (This does not include the value of the copper or PGM's also contained in the drill interval). What I find exciting is the fact that this interval was just one of four near surface, "stacked" zones of nickel mineralization inter- sected in the hole. This could indicate significant width potential and makes the project more attractive to a potential open-pit min- ing scenario (if proven economic). To date, mineralization has been tested over a distance of about 840 metres and to a maximum depth of 300 metres and remains open for expansion. This discovery lies at the end of a 16-km long zone of favourable host rock 100% owned by Balmoral. In addi- tion, geophysics indicates numerous prospective targets along this trend. Balmoral's management team is no stranger to discovery and has already made its mark in the region selling its Thunder Creek deposit (held by West Timmins Mining) to Lake Shore Gold in a $424 million deal. After topping up its till with a recent $4.5 mil- lion bought deal financing, Balmoral is well financed for the next phase of drilling. I believe the company will continue to maxi- mize the value of this new nickel discovery for its investors. With the recent bullish attitude in the nickel and PGM markets and the lack of new nickel discoveries over the past several years, Balmoral is well positioned to attract significant interest from investors in both the precious and base metal sectors. n The information in this article does not constitute a research report. This article is solely the work of its author, Shayne Nyquvest, a regis- tered Investment Advisor at Jordan Capital Markets Inc., a member of both the Investment Industry Regulatory Organization of Canada ("IIROC") and the Canadian Investor Protection Fund ("CIPF"). The views (including recommendations) expressed in it are those of the author alone, and are not necessarily those of Jordan Capital Markets. The information contained herein is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it does the author or Jordan Capital Markets assume any liability. At this time the author does own shares in Balmoral Resources. Balmoral Resources makes Québec nickel discovery

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