Melkior - Carscallen Drilling Proceeding

2017-07-12 / @thenewswire

(TheNewswire)

Timmins, Ontario / TheNewswire / 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 funded. Drilling is expected to last approximately five weeks.

The 2017 Carscallen Project exploration plan expands 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 2017 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 presented 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.

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 'are 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 lamprophyres 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.

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 reconnaissance 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 results 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 with 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 expenditures 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 contained 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: info@melkior.com

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 success in exploring the Carscallen Project and the impact on the Company of these event, including the effect on the share prices. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking 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 Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.