| Melkior Resources
Inc. ("Melkior")(TSX VENTURE:
MKR), has recently increased its land holdings
and commenced exploration activity in the James
Bay Lowlands where Noront Resources has made a
significant nickel-copper-PGE discovery. On March
27, 2008 Melkior announced its initial acquisition
of a 50% interest in a group of claims located
33 kilometres northeast of the Noront Eagle One
discovery. This property, East Rim Nickel, covers
a strong regional gravity anomaly.
Subject to regulatory
approval, Melkior will acquire additional properties
as follows:
East Rim Nickel:
The
East Rim Nickel property consists of 1356 unpatented
claim units totalling 21696 hectares . Melkior
has previously announced the acquisition of a 50%
interest (NR-27-03-08). Following the present acquisition
Melkior will acquire the remaining 50%, subject
to a 2% net smelter return royalty, 1% of which can
be purchased by Melkior for $2,000,000. These claims
are on the east bank of the Attawapiskat River
and adjoin the "Ring of Fire" (ROF).
West
Rim Nickel:
The West Rim Nickel property
consists of 909 claim units totalling 14544 hectares
. Melkior will acquire all of the vendors' rights
in an agreement entered into by Geotest Corporation,
Geovector Management Inc. and a third party on
March 12, 2008 in connection with the West Rim
Nickel property, subject to a 1% net smelter
return royalty, 0.5% of which can be purchased by
Melkior for $1,000,000. The West Rim Nickel property
is 20km due north of the Noront Double Eagle discovery
and covers most of a second significant gravity
anomaly within the "Ring of Fire".
The acquisition
of the properties is made in consideration
for a payment of $350,000 in cash and the issuance
of 2,500,000 common shares of Melkior.
Two of the
six vendors are related parties of Melkior, namely,
Geotest Corporation, whose president and director
is Jens E. Hansen , who is also President of Melkior,
and Norman Farrell , who is also a director of
Melkior. The transaction will therefore constitute
a "related
party transaction" within the
meaning of Regulation 61-101 respecting protection
of minority security holders in special transactions ,
which will be exempted from the formal evaluation
and from the minority approval with regards to
the acquisition of the properties, as neither the
fair market value of the securities being issued
nor the consideration paid exceeds 25% of Melkior's
market capitalization.
Norman Farrell and Jens
E. Hansen will not receive any common shares
of Melkior and have abstained from voting on the
acquisition of the properties.
Following these acquisitions,
Melkior will become a significant landholder in
the Ring of Fire exploration area. Melkior will own
an interest in 2265 claim units or 36240 hectares.
The
East Rim Nickel and the West Rim Nickel claim blocks
cover the majority of two significant gravity anomalies
that straddle and partly coincide with the "Ring
of Fire" magnetic trend.
The two gravity anomalies
are of sufficiently large size and amplitude
to suggest that they are caused by mafic/ultramafic
bodies that could be the central intrusive source
for the massive nickel-copper mineralization
in the area. The major nickel camps of the world
such as Sudbury , Thompson, Raglan, Norilsk and others
have coincident or are adjacent to regional gravity
anomalies and have magnetic signatures. The presence
of widespread high grade mineralization in the
region, of mafic/ultramafic rocks and of gravity
anomalies present a very promising exploration environment.
The ideal way to locate massive
sulphide targets that are typically the hosts of
nickel-copper mineralization within the "Ring of
Fire" and the gravity anomaly
environments is to employ deep searching geophysical
techniques such as MEGATEM to be followed by ground
surveys and drilling. Melkior has completed a MEGATEM
airborne magnetic electromagnetic survey by Fugro
Airborne Surveys and expects to receive the results
within 3 weeks. Potential massive sulphide targets
will be followed up by precise ground geophysics
and by drilling.
Melkior is well financed to undertake
this and other work with more than $4,000,000 in
its treasury.
For map showing the location of
Melkior's properties with respect to Noront's discovery,
the gravity anomalies and the magnetic please refer
to Melkior's website: www.melkior.com
This news release was prepared
by Jens E. Hansen , P. Eng, President Melkior Resources
Inc., a Qualified Person under NI 43-101. |
