(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 – June 14, 2023 - Melkior Resources Inc. (“ Melkior ” or the“ Company ”) ( TSXV:MKR )( OTC:MKRIF ) ispleased to announce that it has signed a Definitive Agreement toacquire 100% of the Beschefer East Project (“Beschefer East” orthe “Project”) from SOQUEM Inc (“SOQUEM”), an entity atarms’ 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 areexcited to announce signing the Definitive Agreement with SOQUEM atthe Beschefer East Project and will shortly commence our summerfieldwork. We believe that the Project has significant potential giventhe multi-kilometre gold-copper-silver targets identified by SOQUEM.With the amount of mineralization intercepted to date amongst theselarge targets, we believe there is a higher metal factor source whichwe will target in upcoming programs. We also believe that the B14 goldzone extends onto the Beschefer East Project, which is one of our toptargets for Phase 1 drilling. To prepare for our maiden(Melkior-operated) drill program, we will shortly commence our surfacegeochemical program. This program aims to screen the large targetsidentified to determine priority drill areas.”
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 DefinitiveAgreement:
Under the terms of the Definitive Agreement, Melkiorhas the right to earn a 100% interest in the Project through anoption, subject to a net smelter return royalty of up to 2.5% oncertain claims made up of a historical NSR of 1.5% and 1% granted toSOQUEM. To earn an undivided 100% interest in the Project, Melkiormust make total cash payments of $50,000, issue $500,000 worth ofcommon shares in the capital of Melkior toSOQUEM and incur Work Expenditures of $1,500,000 in total, all inaccordance with the anniversary dates in the table below:
Date | Cash | Shares | Work Expenditures |
On the Effective Date (1) | $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 Effective Date | NA |
On or before the first anniversary of the EffectiveDate | $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 theEffective Date | $375,000 in aggregate Work Expenditures |
On or before the second anniversary of the EffectiveDate | $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 Effective Date | $750,000 in Work Expenditures in the aggregate(including the $375,000 Year 1 Work Expenditures) |
On or before the third anniversary of the EffectiveDate | $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 theEffective Date | $1,500,000 in Work Expenditures in the aggregate(including the Year 1 and Year 2 Work Expenditures) |
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(1) Effective Date refers to the date that is 5days after TSXV approval of the Definitive Agreement.
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 of mining properties in Quebec. SOQUEM alsocontributes to maintaining strong local economies. Proud partner andambassador for the development of Quebec’s mineral wealth, SOQUEMrelies on innovation, research and strategic minerals to bewell-positioned for the future.
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 Beschefer (#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 closing and payments thereunder and statements withrespect to the non-current 43-101 resource estimates on the propertyto be acquired by the Company. Any statement that discussespredictions, expectations, beliefs, plans, projections, objectives,assumptions, future events or performance (often but not always usingphrases such as “expects”, or “does not expect”, “isexpected”, “anticipates” or “does not anticipate”,“plans”, “budget”, “scheduled”, “forecasts”,“estimates”, “believes” or “intends” or variations of suchwords and phrases or stating that certain actions, events or results“may” or “could”, “would”, “might” or “will” betaken to occur or be achieved) are not statements of historical factand may be forward-looking statements. Consequently, there can be noassurances that such statements will prove to be accurate and actualresults and future events could differ materially from thoseanticipated in such statements. Except to the extent required byapplicable securities laws and the policies of the TSX VentureExchange, the Company undertakes no obligation to update theseforward-looking statements if management’s beliefs, estimates oropinions, or other factors, should change. Factors that could causefuture results to differ materially from those anticipated in theseforward-looking statements include risks associated with the failureto complete the terms of the Agreement, possible accidents and otherrisks associated with mineral exploration operations, the risk thatthe Company will encounter unanticipated geological factors, thepossibility that the Company may not be able to secure permitting andother governmental clearances necessary to carry out the Company’sexploration plans, the risk that the Company will not be able to raisesufficient funds to carry out its business plans, and the risk ofpolitical uncertainties and regulatory or legal changes that mightinterfere with the Company’s business and prospects.; the businessand operations of the Company; unprecedented market and economic risksassociated with current unprecedented market and economiccircumstances due to the COVID-19 pandemic, as well as those risks anduncertainties identified and reported in the Company's public filingsunder its SEDAR profile at www.sedar.com. Accordingly, readers shouldnot place undue reliance on the forward-looking statements andinformation contained in this news release. Except as required by law,the Company disclaims any intention and assumes no obligation toupdate or revise any forward-looking statements to reflect actualresults, whether as a result of new information, future events,changes in assumptions or changes in factors affecting suchforward-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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