Balmoral Reports Recoveries of 91% from Preliminary Metallurgical Testing of Bug Lake Zones

Balmoral today announced that gold recoveries of 91.4% and silver recoveries of 80.2% have been achieved in preliminary metallurgical testing conducted on a composite sample comprised of material from the four principal gold bearing zones located along the Bug Lake Trend on the Company’s Martiniere Property in Quebec. Results were achieved by standard flotation followed by cyanide leaching of the flotation concentrate and tails.

The Bug Lake Composite sample was collected from previously drilled core holes. It was dominantly comprised of material from the Lower Bug Lake Zone, but included representative material from the Hanging Wall, Upper Bug Lake and Footwall Zones. The average assayed head grade for the Bug Lake Composite was 6.3 g/t gold and 7.1 g/t silver. The current metallurgical testing was performed on behalf of the Company by Blue Coast Research Ltd. of Parksville, British Columbia following an initial stage of work conducted by SGS Minerals in Lakefield, Ontario.

“Today’s results provide a very positive start to the metallurgical work on the Bug Lake Zones, indicating plus 90% gold recoveries” said Darin Wagner, President and CEO of Balmoral. “The preliminary work suggests there are no concerns regarding the blending of the multiple zones located along the Trend and indicates some room to potentially increase recoveries with more detailed testing now that general metallurgical parameters have been established. The very fast leach kinetics, potential to work with a relatively coarse grind, and lack of deleterious elements were additional positives from the testing.”

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