Estimate of deposit size -BAR 7. Conclusion
Balmoral Resources is dedicated to advance its two major projects in Qubec, although progress varied at Martiniere and Grasset. After all, these properties were acquired six years ago, drilling started very soon afterwards at Martiniere, and the quest for nickel at Grasset started in 2012. Grasset saw its maiden resource estimate this year although small, whereas Martiniere's maiden resource estimate is expected by me in Q3 2017. It is believed that Grasset has to grow substantially before becoming economic.
Martiniere could have an estimated resource containing anywhere between 1.8 and 2.4Moz Au, at an estimated average grade of 2.8 g/t, with still lots of exploration potential as new mineralization is found at many locations. The combination of high grade near surface mineralization which could most likely be open pittable, and decent grade underground mineralization will most likely provide a substantial, economic operation. Especially since all deposits are open at depth, and the style of mineralization in this area is of deep trending zones, I don't rule out the possibility that Martiniere could become significantly bigger, maybe even to the tune of 4-5Moz Au.
The maiden estimate for flagship Martiniere, if successful according to my estimates, will probably put Balmoral firmly on the radar of many investors and analysts as economic 2Moz+ Au deposits in safe jurisdictions are very rare. Its two-pronged approach could pay off in the near future as having exposure to both precious metals and base metals, but my cards would be on developing Martiniere to the biggest deposit possible if I were management of Balmoral. I'm curious about the potential, and so should you.