(TheNewswire)
Highlights:
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Large land package consisting of2,906 hectares within the prolific Selbaie Camp; located 14 east and45 km north, respectively, of the Selbaie and Casa Berardi Mines, 30km from Wallbridge’s Fenelon Gold Deposit which hosts an indicatedresource of 21.6 Mt at 3.4 g/t Au and 7 km east of SOQUEM’s B26 deposit,which hosts an indicated resource of 6.97Mt at 1.32% Cu, 1.8% Zn, 0.6g/t Au and 43g/t Ag. 1
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Along strike of the BescheferProject, where historical drilling has identified 55.63 g/t gold over5.57 metres, including 224 g/t over 1.23 metres. The extension of this structure has seenlimited testing on the Beschefer East side.
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Historical hole 1172-99-30intercepted 2.03 g/t Au over 6.1 metres with limited follow-updrilling .
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Systematic exploration has outlined hree targeted gold structures,each 2-3 km in size, open for expansion that are largely untested.These targets also have Cu-Ag potential hosted in a felsic volcaniccomplex.
Timmins, Ontario – TheNewswire – April 18 th , 2023 - MelkiorResources Inc. (“ Melkior ” or the “ Company ”)( TSXV:MKR )( OTC:MKRIF ) ispleased to announce that it has entered into a letter of intent (the“LOI”) to acquire 100% of the Beschefer East Project (“BescheferEast” or the “Project”) from SOQUEM Inc (“SOQUEM”), anentity at arms’ length to the Company. SOQUEM is a subsidiary ofInvestissement Québec. The Beschefer East Project is locatedapproximately 90 km west of Matagami and 100 km north of La Sarre,Québec, with good road access and a powerline running through theProject.
The Project has significant gold and polymetallicpotential with geological similarities to SOQUEM’s B26 deposit,located 7 km east, which hosts an indicated resource of 6.97 Mt at1.32% Cu, 1.80% Zn, 0.60 g/t Au and 43 g/t Ag, and an inferredresource of 4.41 Mt at 2.03% Cu, 0.22% Zn, 1.07 g/t Au and 9 g/t Ag(Soquem.qc.ca). 1 The Project shares a border with GoldseekResources’ Beschefer Project, where historical drilling hasidentified 55.63 g/t gold over 5.57 metres, including 224 g/t over1.23 metres within the B14 Gold Zone. 1
Jonathon Deluce, CEO of Melkior, stated, “We believethat the Project has significant potential given the multi-kilometregold-copper-silver targets identified by SOQUEM. With the amount ofmineralization intercepted to date amongst these large targets, webelieve there is a higher metal factor source which we will target inupcoming programs. We also believe that the B14 gold zone extends ontothe Beschefer East Project, which is one of our top targets for Phase1 drilling. During our due diligence, we have been impressed by thedensity and quality of the database compiled by SOQUEM. This willenable us to capitalize on prior program investment while rapidlydetermining the next steps for the Project, including a surfacegeochemical survey to target a new discovery. We look forward tofinalizing a definitive agreement (the “Definitive Agreement”)with SOQUEM in the coming weeks.”
Figure 1: Project Outline and AreaMap
Project Summary:
Location: TheProject comprises 55 claims covering 2,906 hectares in the EeyouIstchee Baie-James territory, Nord du Québec region.
History: TheProject was worked intensively from the sixties to the early ninetiesby BHP Billiton while operating the Selbaie Mine. The use of diversegeophysical approaches in conjunction with overburden gold samplingwas essential due to the thick overburden blanket. It led to thediscovery of multiple gold, copper, silver, and zinc anomalies in afelsic volcanic rock environment.
The Project was then systematically explored by SOQUEMbetween 1992 and 2012, building a tight grid of geophysical anomalies,followed by drill testing. Exploration was done using a checkeredgeophysics line pattern to evaluate the potential of differentstructural orientations. Around 300km of surveyed lines were completedin conjunction with drilling 11,200 metres distributed in 42 holes.The Company aims to expand on the gold, copper and silver anomaliesidentified in prior drill programs and integrate data to confirm goldtrends spatially associated with extensive low-grade base metalmineralized systems.
Results: Thebest gold results were obtained from the Power Line target located inthe northern part of the Project. Hole 1172-99-30 returned a series ofindividual mineralized intervals from 2 to 5 g/t over lengths of 0.5 to 6metres within a large interval of 70 metres.Hole 1172-13-40 intercepted 2.1 g/t over 5.4 metres, including 7.9 g/t over 0.9metres . Gold mineralization is hosted in aquartz-carbonate centimetric veins network cross-cutting felsic to theintermediate volcanic rock affected by variable pervasive alterationassociated with minor amounts of pyrite. Hole 1172-98-24 intersectedthe same type of mineralization but was hosted in deformed andcarbonate-altered andesite located in the southern half of theproperty.
Short anomalous copper anomalies were intersected in asector identified as the Noramco target. From prior SOQUEM programs,the best results were 0.26 %over 4.8 metres and 0.24% over 4 metres ( 1172-98-24 and 1172-99-30, respectively).
A summary of selected historical drill results isreported in Table 1:
Drill Hole | From (m) | To (m) | Length (m) 1 | Au (g/t) |
1172-98-24 | 196.0 | 197.5 | 1.3 | 3.2 |
1172-99-30 | 127.7 | 128.7 | 1 | 4.99 |
184.1 | 184.7 | 0.6 | 5.38 | |
191.8 | 197.9 | 6.1 | 2.03 | |
1172-13-40 | 92.1 | 97 | 4.9 | 2.1 |
Incl. | 92.1 | 93 | 0.9 | 7.88 |
1172-13-41 | 37 | 43 | 6 | 1 |
Drill Hole | From (m) | To (m) | Length (m) 1 | Cu (%) |
1172-98-28 | 146.57 | 151.4 | 4.8 | 0.26 |
1172-13-34 | 171 | 175 | 4 | 0.24 |
Notes:
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True widths of mineralization are not known.
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Some intervals presented vary from those in Figure 1due to the table including re-assaying results.
Geology: TheProject is located in the eastern part of the Brouillan volcaniccomplex, which is a part of the North Volcanic Zone of the AbitibiGreenstone Belt. The drill coverage has highlighted the felsic domefacies, along with related lapillis and fine tuffs that have beenaffected by a north-east trending polyphased folding pattern. To thesouth, basalt and gabbros have been identified interlayered withgraphitic sediments and cherts. Hydrothermal alterations havefavorable characteristics for the exploration of volcanogenic massivesulfides deposits (VMS). On the west side of the Brouillansyn-volcanic intrusion, the Selbaie Mine produced 53 Mt of ore atgrades of 0.96% Cu, 1.9% Zn, 40.7 g/t Ag, and 0.58 g/t Au. The rockunits of the Project have been affected by deformation and structuralelements related to the Bapst Fault. Additionally, the north-eastdeformation zones, including the extension of the Beschefer goldstructure, are interpreted to pass through the property.
Figure 2: Property WideTargets
Note:
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Approximate updated property boundary shown in yellow.
Terms of the LOI Agreement:
Under the terms of the LOI, Melkior has the right toearn a 100% interest in the Project through an option, subject to anet smelter return royalty of up to 2.5% on certain claims made up ofa historical NSR of 1.5% and 1% granted to SOQUEM. To earn anundivided 100% interest in the Project, Melkior must make total cashpayments of $50,000, issue $500,000 worth of common shares in thecapital of Melkior to SOQUEM and incur WorkExpenditures of $1,500,000 in total, all in accordance with theanniversary dates in the table below:
Date | Cash | Shares | Work Expenditures |
Upon execution of the Definitive Agreement | $50,000 | $50,000 worth of common shares issued at the higher of0.20 per share or the weighted average price of the common shares forthe 10 trading days immediately preceding the date of the DefinitiveAgreement | NA |
On or before the first anniversary of the execution ofthe Definitive Agreement | $0 | $100,000 worth of common shares issued at the higher of0.20 per share or the weighted average price of the common shares forthe 10 trading days immediately preceding the first anniversary of theDefinitive Agreement | $375,000 in aggregate Work Expenditures |
On or before the second anniversary of the execution ofthe Definitive Agreement | $0 | $150,000 worth of common shares issued at the higher of0.20 per share or the weighted average price of the common shares forthe 10 trading days immediately preceding the second anniversary ofthe Definitive Agreement | $750,000 in Work Expenditures in the aggregate(including the $375,000 Year 1 Work Expenditures) |
On or before the third anniversary of the execution ofthe Definitive Agreement | $0 | $200,000 worth of common shares issued at the higher of0.20 per share or the weighted average price of the common shares forthe 10 trading days immediately preceding the third anniversary of theDefinitive Agreement | $1,500,000 in Work Expenditures in the aggregate(including the Year 1 and Year 2 Work Expenditures) |
The LOI will shortly be replaced with the DefinitiveAgreement and the Definitive Agreement and issuance of shares toSOQUEM thereunder is subject to TSX Venture Exchange (“TSXV”)approval and the Company’s filing requirements with TSXV. All commonshares of Melkior issued under the Definitive Agreement will besubject to a hold period of 4 months and one day from the date ofissuance.
Qualified Person
This press release was reviewed and approved by MartinDemers, P.Geo, OGQ No 770, who is a qualified person as defined underNational Instrument 43-101, and responsible for the technicalinformation provided in this news release. Mr. Demers is a consultantfor Melkior.
About SOQUEM:
SOQUEM, a subsidiary of Investissement Québec, isdedicated to promoting the exploration, discovery and development ofmining properties in Quebec. SOQUEM also contributes to maintainingstrong local economies. Proud partner and ambassador for thedevelopment of Quebec’s mineral wealth, SOQUEM relies on innovation,research and strategic minerals to be well-positioned for thefuture.
Source of information:
1. ARTINIAN, B., DESBIENS-LEVESQUE, J.-F.,2014. RAPPORT D'EXPLORATION AUTOMNE 2013, BESCHEFER (1172). SOQUEMINC, rapport statutaire soumis au gouvernement du Québec; GM68956, 366 pages, 11 plans.
2. Rapport de la campagne de forages – Décembre1995/Janvier 1996 – Projet Beschfer (#1172-1), Verschelden R.,Soquem, Assesssment report GM-56628.
3. NI 43-101 Technical Report for the Detour-FenelonGold Trend Property, Quebec, Canada, March 3,2023
ON BEHALF OF THE BOARD
Jonathon Deluce, CEO
For more information, pleasecontact:
Melkior Resources Inc.
E-mail: info@melkior.com
Tel: 226-271-5170
The reader is invited to visit Melkior’s web site https://www.melkior.com .
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the
TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.
Cautionary Note RegardingForward-Looking Information
This news release containsstatements that constitute “forward-looking information”(collectively, “forward-looking statements”) within the meaning ofthe applicable Canadian securities legislation. All statements,other than statements of historical fact, are forward-lookingstatements and are based on expectations, estimates and projections asat the date of this news release, and include statements with respectto the anticipated timing of entry into the Definitive Agreement andclosing and payments thereunder and statements with respect to thenon- current 43-101 resource estimates on the property to be acquiredby the Company. Any statement that discusses predictions,expectations, beliefs, plans, projections, objectives, assumptions,future events or performance (often but not always using phrases suchas “expects”, or “does not expect”, “is expected”,“anticipates” or “does not anticipate”, “plans”,“budget”, “scheduled”, “forecasts”, “estimates”,“believes” or “intends” or variations of such words andphrases or stating that certain actions, events or results “may”or “could”, “would”, “might” or “will” be taken tooccur or be achieved) are not statements of historical fact and may beforward-looking statements. Consequently, there can be no assurancesthat such statements will prove to be accurate and actual results andfuture events could differ materially from those anticipated in suchstatements. Except to the extent required by applicable securitieslaws and the policies of the TSX Venture Exchange, the Companyundertakes no obligation to update these forward-looking statements ifmanagement’s beliefs, estimates or opinions, or other factors,should change. Factors that could cause future results to differmaterially from those anticipated in these forward-looking statementsinclude risks associated with the failure to complete the terms of theAgreement, possible accidents and other risks associated with mineralexploration operations, the risk that the Company will encounterunanticipated geological factors, the possibility that the Company maynot be able to secure permitting and other governmental clearancesnecessary to carry out the Company’s exploration plans, the riskthat the Company will not be able to raise sufficient funds to carryout its business plans, and the risk of political uncertainties andregulatory or legal changes that might interfere with the Company’sbusiness and prospects.; the business and operations of the Company;unprecedented market and economic risks associated with currentunprecedented market and economic circumstances due to the COVID-19pandemic, as well as those risks and uncertainties identified andreported in the Company's public filings under its SEDAR profile atwww.sedar.com. Accordingly, readers should not place undue reliance onthe forward-looking statements and information contained in this newsrelease. Except as required by law, the Company disclaims anyintention and assumes no obligation to update or revise anyforward-looking statements to reflect actual results, whether as aresult of new information, future events, changes in assumptions orchanges in factors affecting such forward-looking statements.
1 References to nearby properties is forinformation purposes only and there are no assurances the Company willreceive the same results.
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