Melkior Discovers New VMS Setting and Intersects 5.6 g/t Gold and 6.4 g/t Silver over 9.5 Meters, Including 0.5 Meters of 67.9 g/t Gold, 79.8 g/t Silver, 0.62% Copper and 0.27% Zinc on the Carscallen Property

2020-05-21 / @thenewswire

(TheNewswire)

May 21, 2020 – TheNewswire - Timmins, Ontario - Melkior Resources Inc. (“Melkior” or the “Company”) (TSXV:MKR) (OTC:MKRIF) believes it has discovered a new VMS (volcanogenic massive sulphide ) hosted environment in Carscallen Township approximately 25 kilometers west of Timmins, Ontario in its recent drill program. The discovery occurred approximately 264 meters south of the current deep drilling program initiated in early March of 2020. The third drill hole, CAR-20-06 tested a mise-a-la-masse (MALM) conductor and encountered strong chalcopyrite (copper), sphalerite (zinc) mineralization, described as clots and disseminations, as well as arsenopyrite, pyrite and pyrrhotite mineralization with visible gold hosted within lithologies such as a previously unknown massive rhyolite which typically hosts mineralization in VMS environments.

Drill hole CAR-20-06 intersected 5.6 g/t Au and 6.4 g/t silver over 9.5 meters from 486.5 to 496.0 meters, including 23.9 g/t Au over 0.5 meters from 486.5 to 487.0 meters and 67.9 g/t Au with 79.8 g/t Ag over 0.5 meters from 495.0 to 495.50 meters. The final interval from 495.5 to 496.0 also returned 0.62% copper and 0.27% zinc. In addition, CAR-20-05 which intersected 25.7 g/t Gold over 6.0 meters from 357.0 to 363.0 meters, ( Melkior press release, May 7, 2020) had previously not been analyzed for the 36 multi-element analysis and has recently returned assays of 3.6% copper and 27.8 g/t Silver over 0.7 meters from 360.5 to 361.2 meters in addition to the 205 g/t Au previously reported. Between 303 and 750 meters, 311 samples were taken, which returned 100% anomalous copper, 100% anomalous zinc, and 88% anomalous gold. Pyritic and pyrrhotitic mineralization was prevalent throughout the entirety of the VMS environment encountered.

Highlights:

- The Carscallen Gold Project lies within the township of Carscallen, approximately 25 kilometers southwest of the City of Timmins, Ontario. It is comprised of 301 claim units covering 47 square kilometers with 100% ownership by Melkior.

- The third drill hole, CAR-20-06, with a target depth of 600 meters, was extended an additional 150 meters to 750 meters and terminated within pyritic and pyrrhotitic mineralization. Melkior believes it may be within what is described as a Bimodal mafic VMS environment as the rock types include mafic massive basalts, pillowed mafic flows with localized hyaloclastite, subaqueous debris flow breccias and dacitic to rhyolitic massive flows with no pyroclastic all characteristic of this VMS classification (see accompanying photos).

- Typical as well of this class of VMS encountered in CAR-20-06 were numerous feldspar porphyry dikes and alteration, including chloritization, sericitization, silicification, and epidotization.

- The drill hole intersected bands of semi-massive pyrrhotite and clusters of coarse pyrite from 454 to 468 meters. These types of systems typically contain a significant amount of pyrrhotite, an iron sulphide which is strongly magnetic and believed to be the principal conductor in the MALM survey and recognized in the VTEM total magnetic intensity as a significant elevated response.

- Significant concentrations of gold have now been established approximately 264 meters south of the first two holes drilled with further drill testing required to establish continuity and the possible expansion into a larger gold system. Gold and silver values are usually highest in the fringe and cooler upper portions of VMS systems.

- In 2012, CAR-84-2012 collared approximately 275 meters northwest of CAR-20-06, intersected iron formation consisting of centimeters thick magnetite interbedded with chert, chlorite, pyrite, and hematite within mafic volcanics typical of the distal portion of a VMS (Melkior press release, November 17, 2012). This historic drill hole may provide a vector in future drilling based upon the results in CAR-20-06.

- A second MALM survey has been completed on CAR-20-06, which appears to exhibit stronger conductivity between CAR-20-06 and the first two drill holes CAR-20-04 and CAR-20-05. These first two holes in the program also returned strong copper disseminations within a chlorite-rich alteration of a possible copper-rich VMS stringer zone.

- Further TDEM (time-domain electromagnetic) borehole surveys are planned to be conducted on CAR-20-06 and CAR-20-04. Drill grid patterns have also been planned to reflect the potential for both the gold-bearing system between these drill holes and the recognized VMS system, but may be modified pending the results of the TDEM surveys.

Jonathon Deluce, CEO of Melkior, remarks, “We are excited with the last of our results from our March 2020 drill program. We are very encouraged to intercept high-grade gold veins in our 264-meter step-out hole with indications of metals found within a VMS environment. We believe the Carscallen Project has a lot of potential for both the high-grade gold system and the increased likelihood of being in a VMS environment as well. Hole CAR-20-06 demonstrated consistent anomalous mineralization over 447 meters, and that consistency combined with strong down-hole conductive readings supports us potentially being on the fringe of a VMS system.”

LOCATIONS, DIPS, AZIMUTHS AND HOLE LENGTHS 2020 DRILL HOLES

----------------------------------------------------------- |Hole ID |Easting UTM|Northing UTM|Length (m)|DIP|Azimuth| |---------------------------------------------------------| |CAR-20-04|451927 |5358046 |600.0 |-78|240 | |---------------------------------------------------------| |CAR-20-05| 451957 | 5358091 | |-76|240 | | | | | 600.0 | | | |---------------------------------------------------------| |CAR-20-06| 451957 | 5357827 | |-65|240 | | | | | 750.0 | | | -----------------------------------------------------------

RESULTS FROM CAR-20-06

-------------------------------------------------------- |Hole ID |From (m) |To |Length|Au |Cu |Zn |Ag | | | |(m)|(m) |(g/t)|(%)|(%) |(g/t) | |------------------------------------------------------| |CAR-20-05|360.50|361.20 |0.7 |205 |3.6| |27.8 | |------------------------------------------------------| |CAR-20-06|217.50|218.0 |0.5 |3.31 | | | | |------------------------------------------------------| | |373.50|374.0 |0.5 | |.22| | | |------------------------------------------------------| | |445.0 |449.0 |4.0 |1.19 | | | | |------------------------------------------------------| |Including|445.0 |446.0 |1.0 |3.51 | | | | |------------------------------------------------------| | |486.50|496.0 |9.5 |5.63 |.05|.026|6.4 | |------------------------------------------------------| |Including|486.50|487.0 |0.5 |23.9 |.06|.03 |17.7 | |------------------------------------------------------| |And |495.0 |495.50 |0.5 |67.9 |.62|.27 |79.8 | |------------------------------------------------------| | |620.0 |620.5 |0.5 |4.96 | | | 2.6| |------------------------------------------------------| | |640.0 |642.0 |2.0 |2.12 | | | | |------------------------------------------------------| |Including|640.0 |640.50 |0.5 |4.45 | | | | --------------------------------------------------------

* Stated lengths are core lengths as drilled. True widths are estimated to be 80% of reported core length intervals.

Click Image To View Full Size

Figure 1 Silicified and sericitized massive rhyolite with 9.5 meters of 5.68 g/t gold, 6.4 g/t silver, and 0.5 meters of .62% copper and .27% zinc from 486.50 to 496.0 meters

**The photos are of selected intervals and are not necessarily indicative of the mineralization hosted on the property.

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Figure 2 Clots and disseminations of chalcopyrite and sphalerite within quartz vein crosscutting rhyolite. 67.9 g/t Au, 79.8 g/t Ag, .62% copper and .27% zinc over 0.5 meters from 495.0 to 495.50 meters

**The photos are of selected intervals and are not necessarily indicative of the mineralization hosted on the property.

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Figure 3 Banded semi-massive pyrrhotite and blebby subhedral pyrite within brecciated chloritic and sericitic mafic volcanic.

**The photos are of selected intervals and are not necessarily indicative of the mineralization hosted on the property.

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Figure 4 Brecciated volcaniclastic quartz silica zone grading into subaqueous volcanic debris flow with subrounded silica clasts within chloritized matrix.

**The photos are of selected intervals and are not necessarily indicative of the mineralization hosted on the property.

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Figure 5 Visual representation cross-section of a typical volcanogenic massive sulphide (VMS) ore deposit

QA/QC and Core Sampling Protocols

The program was carried out under the supervision of Peter Caldbick, P.Geo and a consultant for Melkior Resources Inc., the qualified person responsible for this news release. The drill core was split with half sent to Actlabs in Timmins, On and fire assayed with an AA and gravimetric finish. Whole metallic assays are performed on samples greater than 10 g/t gold and samples containing visible gold. In addition, all three drill holes were treated with the 1E3 36 element multi element package with aqua regia analyses. Duplicates, standards and blanks were inserted into the sample stream.

Qualified Person

All technical information in this press release has been reviewed and approved by Peter Caldbick, P.Geo. Mr. Caldbick is a consultant for Melkior and a Qualified Person for the purposes of National Instrument 43-101.

ON BEHALF OF THE BOARD

Jonathon Deluce, CEO

For more information, please contact:

Melkior Resources Inc.

E-mail: info@melkior.com

Tel: 226-271-5170

The reader is invited to visit Melkior's web site www.melkior.com.

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