Melkior - Carscallen Drilling Proceeding
Head Office: 66 Brousseau Ave., Suite 207, Timmins, ON P4N 5Y2 Canada
MELKIOR - CARSCALLEN DRILLING PROCEEDING
July 12, 2017 Trading Symbol: MKR
TSX Venture Exchange
Timmins, Ontario. Melkior Resources Inc. (“ Melkior ”) is pleased to announce the issuance of the
Exploration Permit by the Ministry of Northern Development and Mines for the Carscallen Project,
Timmins, Ontario. Drilling is expected to commence on July 19, 2017. An initial budget for 2,700
meters drilling has been allocated and is fully fun ded. Drilling is expected to last approximately
five weeks.
The 2017 Carscallen Project exploration plan expand s the area of exploration within the confines
of supporting historical exploration data. Gold mineralization on the Carscallen Project is associated
with north-south trending structures within granite. Historical exploration on the Carscallen Project
has been focused on a couple mineralized structures. The Carscallen Project area hosts other faults
and inferred faults and structures in the granite that merit evaluation for their gold bearing potential.
The evaluation of these companion structures is the focus of the 2017 exploration plan.
Drilling will be initiated as outlined within the 2 017 Exploration Plan available on the Melkior
website ( http://www.melkior.com/wp-content/uploads/MKR-2017-Exploration-Plan.pdf ).
A summary of some of the initial targets is present ed below (maps within the above link for the
2017 Exploration Plan provide improved context for the following discussion):
Target A is an inferred north-south trending fault about 75 meters west of the Zamzam zone that
has not been directly targeted by drilling or surficial work. Gold mineralization was encountered in
several drill holes at depth within both granitic and the underlying volcanic rock that are
interpreted to be related to the Target A structure. The exploration drill holes are located to
simultaneously evaluate an inferred east-west structure that has a collocated IP Zone. This IP Zone
is also associated with Target B. This east-west striking mineralized zone could host gold
mineralization or have acted as a redox trap for hydrothermal fluids within north-south fault zones
like Target A and the parallel Zamzam Zone. Some of the most spectacular gold assays from
Carscallen come from massive fine grained pyrite veins, these may represent remobilized
mineralization from a nearby source. High grade pyrite rich seams are present in historic drill
holes beneath Target A and in the adjacent Zamzam and Jowsey Zones. The evaluation of Target A
northwards trends towards the contact of the granitic pluton with mafic volcanic terrain to the
north. This projected fault and contact area is up dip from some of Melkior’s most prolific
exploration drill holes within the underlying volcanic rocks. A shallow drill intercept in Target A
would allow for a methodological drilling program to follow the mineralization to depth and
potentially to the volcanic contact below.
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Target B is located 400 m southwest of the Zamzam Zone and has elements of both a north-south
and east-west trending structural systems. Target B hosts three independent gold assay points (two
in drill intersections and one surficial grab sample) within an east-west trending IP Zone. This
target is located in a swampy area with sparse outcrop. A surface bedrock grab sample collected in
2008 returned a gold assay of 5.97 ppm from a quartz vein overlying Target B. CAR-73-2011,
intersected 15 g/t gold over 0.65 m at a downhole depth of 372.50m within a 16cm wide quartz
vein. CAR-12-2009 intersected a 20m wide feldspar porphyry, the margin of which assayed 4.86
g/t over one meter, with associated quartz veining. The east-west trending IP Zone may reflect
disseminate pyrite within east-west trending feldspar porphyries with associated gold mineralized
at the contact.
The proposed drill holes on Target B will scissor the IP Zone above the CAR-73-2011 intercept of
15 g/t gold over 0.65 m. Additional drilling may result from evaluation of the initial results.
Target C is the northern extension of the 1010 North zone, where TW-08-13 yielded 14.30 g/t over
0.5 m in a swampy low lying area, barren of outcrop. The selection of drill hole locations is
deferred until adjoining target areas ‘B’ and ’D ‘a re evaluated. The evaluation of Target B could
result in a north-south mineralized structure that could then be followed towards the Target C area
located 200 m to the southeast.
Target D is a 125 m wide gap in drilling between the 1010 Zone and the 1010 North Zone. This
gap is situated immediately north of the most northerly historical shaft on the 1010 Zone. There is
potentially an offsetting structure crossing the target area with an associated IP Zone and a gold in
soil anomaly. It is proposed to collar a drill hole to undercut the northerly strike extension of the
1010 zone, to traverse the IP Zone under the gap area and continue the drill holes far enough to
evaluate any parallel faulting to the west (Target E). This will lead directly into and aid in the
evaluation of Target E.
Target E is a north-south inferred fault zone, parallel to, and located approximately 100 m west of
the 1010 fault and gold zone. There is no IP anomaly associated with this fault zone. Re-
evaluation of drill hole data indicates that there is one drill hole that supports this inferred fault
zone. CAR-29-2010 intersected 18.65 g/t gold over 0.65 meters at a downhole depth of 147.6
meters (100 m vertical). This drill intercept is located only 100 m west of the 1010 Zone. The gold
is situated within a series of fractures and quartz veins along the margin of a QFP intrusive. There
is an associated 20 m wide halo of 1 ppm gold within in the QFP. The QFP was encountered from
131 – 218 meters downhole. An unusual number of la mprophyres are noted in drill logs in this
area, potentially indicating deep complex faulting.
The first proposed drill hole would target the inferred fault 50 m vertically above the CAR-29-2010
intercept of 18.65 g/t gold over 0.65 meters. Based on the results of this first hole a series of holes
would be drilled to the south. The southerly evaluation of this target area leads into Target F area
located 150 m to the south.
Target F is located less than 100 m from the southerly extent of the 1010 Zone where trenching
shows that the 1010 vein meets an offsetting structure that hosts a gold mineralized porphyry. The
porphyry trends to the south west and was followed by surface trenching to the limits of
mechanical trenching where a sharp increase in overburden depth was encountered (fault zone?).
Soil sampling has identified three anomalous and contiguous gold in soil samples immediately
south of the limits of historical drilling. This area has not been drill tested.
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Recent prospecting and sampling has validated and helped to define Targets D and F. A narrow
quartz vein in angular tonalite float over Target D returned 2.89 g/t gold. Angular and delicate
feldspar porphyry boulders with mineralized quartz veins immediately overlying the Target F area
have returned 32.3 g/t gold.
It is proposed to drill one hole to undercut the three contiguous soil anomalies, the area below the
mineralized feldspar porphyry boulder and co-incidentally also undercutting the area immediately
south of and on strike with the 1010 Zone.
Complete assay results from the initial reconnaissa nce program on the Maseres Project have still
not been received. The Maseres Project is located about 14 km southwest of the Osisko Black Dog
Deposit. A future news release will discuss these r esults and Melkior exploration plans for the
Maseres Project and developments within the White Lake (Hemlo) Project.
Jim Deluce, CEO of Melkior states, “I am excited wi th our change in exploration focus and we
hope to generate several new exploration centers on the Carscallen Project. With a greater selection
of available exploration centers, our exploration e xpenditures can be more effectively used to
advance the project and ultimately enhance shareholder value. I am extraordinarily pleased that we
have been able to advance the Carscallen Project to this stage without dilution to Melkior
shareholders.”
Wade Kornik, P.Geo., has approved the information c ontained in this release. Mr. Kornik is the
Exploration Manager of the Company and is Qualified Person as defined by National Instrument
43-101.
ON BEHALF OF THE BOARD
Keith James Deluce, CEO
For more information, please contact:
Melkior Resources Inc.
E-mail: [email protected]
Tel: 705-267-4000
The reader is invited to visit Melkior's web site www.melkior.com.
This news release may contain or refer to forward-looking information based on current expectations, including, but not
limited the prospect of the Company achieving succe ss in exploring the Carscallen Project and the impa ct on the
Company of these event, including the effect on the share prices. Forward-looking information is subje ct to significant
risks and uncertainties, as actual results may diff er materially from forecasted results. Forward-look ing information is
provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events
or circumstances.
Neither TSX Venture Exchange nor its Regulation Ser vices Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the ad equacy or accuracy of this release.