| Melkior Resources
Inc. ("Melkior")(TSX VENTURE:
MKR)is pleased to announce that it has agreed to
acquire a 50% interest in approximately 100 claims
(1500 claim units) or 24000 hectares in the McFauld's
Lake "Ring
Of Fire" area of Northern Ontario. The property is
located approximately 33 kilometres north east of
the Double Eagle (Cu, Ni, PGE) discovery by Noront
Resources Ltd. The exact number of claims will be
specified when all recording documentation has been
received from the Ontario Ministry of Northern Development
and Mines.
The property has been staked over
the largest gravity anomaly in the McFauld's Lake
area. This anomaly is of sufficiently large size
and amplitude to suggest that it is a mafic/ultramafic
body that could be the central intrusive source for
the massive nickel/copper mineralization recently
found by Noront. This interpretation would be consistent
with the Noront mineralization occurring as an offset
dyke from the main intrusive center similar to offset
dyke deposits in the Sudbury basin.
It is believed
that the gravity anomaly could host world
class Ni/Cu magmatic orebodies similar to those found
in the Sudbury Intrusive Complex or Norilsk or
Voisey's Bay. Supporting this interpretation of possible
giant magmatic Ni/Cu deposits are the following
points:
- Presence of significant gravity
anomalies suggesting a large volume of mafic/ultramafic
rocks
- Presence of magmatic sulfides
in this area based on Noront's recent discoveries
- Presence of major
crustal scale structures
- Proximity to the
margin of the Archean Craton.
Melkior will pay
the owners $350,000 upon approval and undertake
geophysical surveys of $250,000 during
the first year. Melkior will be the operator and
will have a first right of refusal to acquire the
50% retained by the owners.
Two of the six owners
are insiders of Melkior namely Jens Hansen President
of Melkior and Norman Farrell a director of Melkior.
Jens Hansen via his 75% ownership in Geotest Corp.
will receive 34% of the $350,000 purchase price
and Norman Farrell will receive 10% of the $350,000
purchase price. These percentages represent the contribution
of the insiders to the claim acquisition costs.
The share ownership by the insiders of the 50% retained
by the owners is 21.25% for Geotest Corp. and 6.25%
for Norman Farrell.
The McFauld's area is fast
becoming the most exciting exploration area in
Canada . Melkior will own a 50% interest in one of
the largest most prospective areas within the new
McFauld's nickel-copper exploration camp.
The acquisition
is subject to regulatory approval.
This news release
was prepared by Jens E. Hansen , P. Eng Director
and President of Melkior. |
