Balmoral Resources Ltd. announced that the company’s first drill testing of the Area 52 gold target on its Fenelon Property in Quebec has successfully achieved multiple objectives, highlighted by the discovery of a new, near-surface, high-grade gold zone located proximal to the Sunday Lake deformation zone. Hole A52-19-03 intersected a 9.65 metre wide zone of anomalous gold mineralization averaging 5.00 g/t gold, centered around a high-grade interval of 3.29 metres grading 14.03 g/t gold. Including this important new discovery, the initial four-hole Area 52 exploration drill program has successfully: Intersected high-grade gold mineralization both within the southeast-northwest trending Area 51 corridor AND along the east-west trending Sunday Lake deformation zone; Confirmed the extension of the Area 51 gold system into Area 52; Intersected three distinct styles of gold mineralization, each in a separate geological/structural setting; Demonstrated a good correlation between initial widely-spaced geophysical surveying and the gold mineralization intersected. High-Grade Gold Mineralization: High-grade gold mineralization was intersected in holes A52-19-01 and A52-19-03, in two distinct geological environments, and along two separate structural trends. In hole A52-19-01, visible gold mineralization is present in a discrete quartz-shear vein associated with coarse cubic pyrite. This discovery occurs within the Area 51 gold corridor. There is limited alteration surrounding the shear vein and no significant gold mineralized halo around it. In this, it appears to be similar to many of the visible gold-bearing intercepts from the adjacent Fenelon mine property. In contrast, the quartz-vein hosted, higher-grade visible gold bearing zone discovered in hole A52-19-03 (Photo 1b) is surrounded by a 9.65 metre halo of strong sericite alteration, shearing, quartz+/-sulphide veining and anomalous gold mineralization suggesting a more robust mineralized system. This discovery occurs in what is interpreted to be one of a series of second order, east-west trending shear zones which parallel, or may in fact mark the north contact of, the Sunday Lake deformation zone. A second occurrence of visible gold occurs in a wider shear zone located below the main interval. Southern Extension of Area 51 Corridor: Holes A52-19-01, -02 and -04 targeted the southern extension of the Area 51 corridor. Only hole A52-19-04 collared into the target monzonite intrusion, the other two holes collaring east of the contact. Anomalous gold mineralization was intersected intermittently over broad intervals in holes A52-19-01 and -04, associated with polymetallic sulphide (+/- quartz) veining. The sulphide-rich veining occurs both within the target monzonite and within the adjacent sedimentary sequence, typically associated with weak to moderate shearing. This style of mineralization appears to be consistent with what is reported, but not well described, on the adjacent Fenelon mine property, confirming the extension of the Area 51 corridor south into Area 52. Style of Gold Mineralization: One of the more interesting aspects of the drill results from Area 52, aside from the high-grade gold discoveries, is that three distinct and different styles of gold mineralization were observed. Each of these styles differs somewhat from the narrow gold mineralized quartz vein system at the Fenelon Mine. As discussed above, the high-grade gold discovery in hole A52-19-03 occurs within a zone of strong shearing as dominantly visible, very fine to medium sized free gold grains hosted in quartz-carbonate-sericite veins with 1-5% sulphide. The veins are surrounded by a strong sericite alteration halo. The quartz veining is locally laminated indicating multiple phases of vein formation and protracted fluid flow through the shear zone. This is one of several shear zones developed in hole A52-19-03, two of which contain visible gold mineralization. The visible gold bearing, high-grade gold intercept in hole A52-19-01, as previously described, occurs within discrete, polyphase shear veins, in an otherwise at best weakly altered and deformed siltstone. Veining of this nature is not uncommon on the Fenelon property but appears to increase in frequency proximal to the Area 51 corridor. Within the Area 51 corridor, broader intervals of lower grade gold mineralization occur in association with polymetallic sulphide vein swarms in weak to moderately sheared and fractured monzonite and sediments. Sulphide content within individual veins typically exceeds 75%. This style of mineralization (“A51 style”) consistently returned grades between 0.1 g/t to 3.62 g/t gold in holes A52-19-01, 02 and 04, over variable widths. A51 style mineralization occurs intermittently over a 73 metre wide interval within the monzonite sill in hole A52-19-04 and then again over a 111 metre wide interval in the same hole at the contact between the monzonite and adjacent sedimentary rocks where the degree of deformation is somewhat higher. Geophysical Correlation: Hole A52-19-03 was drilled to test a distinct resistivity anomaly located along the projection of the Sunday Lake deformation zone identified by Balmoral early this year. This anomaly appears to correlate well with the gold mineralized shear corridor intersected. Similar anomalies occur on lines 300 metres, which equals the line space of the reconnaissance survey, to the east and west. The magnetic anomaly which marks the eastern contact of the Area 51 monzonite appears to be related to conversion of pyrite to magnetic pyrrhotite in the altered sedimentary and lesser volcanic rocks located along the eastern margin of the monzonite sill. The contact is variably sheared and A51 style gold mineralization is developed within the shear corridor. The monzonite itself is, at least locally, marked by a resistivity anomaly allowing it to be traced in the sub-surface.