Melkior Val d'Or Property Highest Soil Sample Returns 277ppb Gold, Closes $700,000 FT Financing at $1.15
(via TheNewswire)
August 27, 2020 - TheNewswire - Timmins, Ontario - Melkior Resources Inc. ("Melkior" or the "Company") (TSXV:MKR) (OTC:MKRIF) is pleased to announce the results of its soil sampling program that was completed on July 20th 2020. From the strong gold anomalies in soils found across the property, 4 distinct targets were identified. The highest gold soil return was 277ppb gold in addition to a boulder sample that ran 14 g/t silver.
Figure 1. Targets on the Property
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Jonathon Deluce, CEO of Melkior, comments: "We are extremely pleased with the results of our soil program at the Val d'Or Property. Now that we have identified 4 prospective drill targets, we are now in a position to begin planning for a drill program on the property this fall/winter as we are fully financed. The area has seen increased exploration activity with great results coming from neighboring properties held by O3 Mining, Probe Metals, and Eldorado/Sparton.
While we await the finalization of the Carscallen Gold Project JV/Option with Kirkland Lake Gold, we will continue to focus on unlocking shareholder value by working diligently and actively on our vast portfolio of exciting exploration assets. In the coming weeks, we will share our next steps on the Val d'Or Property.
We appreciate our shareholder's patience as we enter into the next stage of our corporate development."
Target 1 is situated in the western area of the Property and could be an anomaly associated with intrusion-related gold mineralization. This target is generated using multiple soil samples that are anomalous in different elements including: Au, Ag, As, Te, Mo, Pb, Sb, Bi, Sn, and W. The Company has added 13 new claims (746.2 ha) to the Property to make sure it covers the potential source of this anomaly. The source is expected to come from the granodiorites located just north of that area, and the unit already includes gold showing in similar geological context to what is expected to be the source of the anomaly (the Jenson showing is grading at 6.7 g/t Au and is hosted in intrusions, approximately 3-4km NE of the anomaly and outside of the Property).
Target 2 could be the source of an anomalous area in gold that is located in the northern part of the Property and is spatially close to 0.45 oz per ton of silver assayed in a metric sized boulder. The 2m x 1m boulder indicates that the source of the anomaly may be located close-by to the boulder. The target also includes anomalies in Mo, Se, Hg and Bi.
Target 3 is related to a high gold anomaly (277 ppb Au) in till and is located in the North-East area of the Property. This anomaly is also associated with Ag and W. The Company has multiple claims up-ice from the anomaly and will further inspect the suspected source of the anomaly.
Additionally, the Company's top priority target is named Target 4, which is located in the southern area of the Property, on strike with previously discovered gold mineralization by Sparton Resources. The anomaly is multi-elemental (Ag, As, Ni, Co, Cu, Mo, Zn, Rb and W) and could be associated with gold and base metal mineralization. Its source is expected to be located on strike with the Bruel showing and is also on strike with the discoveries done by Sparton Resources (https://www.spartonres.ca/wp-content/uploads/2017/08/Sparton-Bruell.jpg). The target is based on soil anomalies that indicate a possible source located up-ice, on the Property. The Company will test the up-ice area of the anomaly, which may be the western extension of the Bruell showing. The Bruell showing is part of multiple mineralizations that include 4 gold showings located less than 300m east, on strike of the soil anomaly's suspected source. This local context, the historical magnetic airborne survey, and the soil anomalies support this specific area being investigated by an IP survey in the following month. The IP survey will allow the Company to plan a drill program on the potential source of the soil anomaly which could allow the Company to discover new mineralization in the area, on strike with the Bruell showing.
The three other targets will be prospected for boulder samples to further complement and inspect the type of mineralization associated with the anomalies. Following the boulder sampling, additional geophysics and drilling will be carried on those targets. Figure 1 shows the different targets on the Property.
Val d'Or Property:
The property is located 35km east of Val d'Or and is accessible by a well-maintained dirt road as well as logging roads. The property consists of 120 claims, which covers approximately 6,333.04 hectares.
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Melkior's claims cover volcanic rocks, the same geological formation that contains the quartz veins and shear zones that include the mineralization in the showings displayed on our website, here: https://www.melkior.com/val-dor-property/
The historical mineshaft of the Bruel mine, owned by Sparton, is located 200m south of the Property's limit. The new discovery by Sparton is located 600m east in the same direction. The regional magnetic anomalies associated with the gold mineralization also extend onto the Property, further indicating that the volcanic unit is found on the Property.
Financing
Melkior is pleased to announce that it has closed a non-brokered flow-through private placement (the "Private Placement") for gross proceeds of C$700,000, subject to final TSX Venture Exchange (the "TSXV") approval.
The Private Placement will be flow-through common shares issued at a price of $1.15 per common share, with each such share issued as a "Flow-Through Share" within the meaning of the Income Tax Act (Canada).
Proceeds of the Private Placement will be used to conduct further exploration on the Company's Quebec mineral properties. The Company issued 42,609 finders' warrants exercisable for a period of 24 months at an exercise price of $1.15 and paid finders' fees of $49,000 in respect of the Private Placement as permitted by the TSXV, and applicable securities laws.
All securities issued under the Private Placement will have a hold period of four months and a day from closing.
Sampling Methodology
A total of 344 sample sites were visited during the first phase of soil sampling. Out of the sites, a total of 201 soil samples were taken in till material. 143 sites didn't have till at surface or in the immediate area of the planned sample point.
1 to 1.5 kg of B or C horizon were taken on site by a team of a geologist and a technician using an Auger. The samples were described using a cellphone application and were then put into a cotton bag with a sample tag. The samples were brought to the camp and were bagged in group of 15 to 25 samples inside of rice bags. They were directly brought to ALS Canada's Val D'Or laboratory.
At the laboratory, the soil samples were prepared using method SCR-41, which consists of filtering of any minus 180 um size fraction for analysis. The fine fraction was then analyzed using method AuME-TL44 which consist of an Aqua Regia digest with a 50g charge weights to combat nugget effect. The metal content of the digested elements is then determined by ICP-MS and ICP-AES. Analyzed elements include Au, Ag, Al, As, B, Ba, Be, Bi, Ca, Cd, Ce, Co, C, Cs, Cu, Fe, Ga, Ge, Hf, Hg, In, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, TL, U, V, W, Y, Zn and Zr.
Nine (9) grab samples were taken as part of the current program and were subject to the same assaying protocol as the soil samples.
Nine (9) duplicate samples were also taken. The statistical analysis will be done during the reporting of the results to the Ministry of Energy and Natural Resources.
Qualified Person
This press release was prepared Steven Lauzier, P.Geo, OGQ, who is a qualified person as defined under National Instrument 43-101 and has reviewed and approved the geological information provided in this news release
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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TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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