OTTAWA, ONTARIO – Melkior Resources Inc. (TSX VENTURE:MKR) (“Melkior” or the “Company”) is pleased to provide a budget update following its recently completed private placement which resulted in total gross proceeds in excess of $6.0 million. With cash on hand in excess of $8.0 million, the Company plans to aggressively expand its work programs as follows:
1. Substantially expand drilling on its 100% owned West Timmins Carscallen Gold property located adjoining Lake Shore Gold Corp.
2. Explore and drill its 100% owned Ring of Fire East Rim Nickel property
3. Drill its 100% owned Timmins Eldorado Nickel property
West Timmins Carscallen:
Drilling of 7 holes totalling 1,960 metres has been completed on the West Timmins Carscallen property prior to the December 16 holiday break. Samples from potential mineralized sections have been sent for assay. The expanded drill program for 2010 is expected to total approximately 10,000 metres at greater depths.
To date, gold bearing structures have been detected over a total strike length of approximately 1,000 metres and these have been drilled to a depth of approximately 150 metres. Narrow, high grade gold veins similar to early Melkior results were typical of early near surface exploration by Lake Shore Gold Corp (TSX: LSG) and West Timmins Mining Inc. (acquired by LSG). Deeper drilling led to significant discoveries. The current drilling and expanded program is planned to test the zones to the depths where LSG encountered important widths and gold grades. New geophysical surveys have covered a portion of the property where it extends into Denton Township. New Induced Polarization anomalies, located south of current drilling, will be investigated. Deep gold deposits are characteristic of the new West Timmins discoveries.
The allocated budget for the West Timmins Carscallen property is approximately $3.0 million.
Ring of Fire:
Melkior holds a 100% interest in 1,492 claim units or 23,872 hectares in the East Rim Nickel project in the McFaulds “Ring of Fire” exploration area in Northern Ontario. MEGATEM and VTEM airborne surveys have been completed and a series of targets with massive sulphide geophysical signatures have been located. It is anticipated that these will be drill ready in March-April 2010.
Melkior also owns a 50% interest in 934 claim units or 14,960 hectares in the West Rim project. MEGATEM airborne surveying has been completed on this property. Both the East and West Rim blocks were staked to cover large regional gravity anomalies which are typically associated with the worlds major nickel districts (Sudbury, Raglan, Norilsk). Drilling by Noront Resources Limited (TSXV: NOT) has demonstrated the potential for significant nickel-copper-PGE discoveries in the “Ring of Fire”.
Melkior’s planned budget for this program is $1.5 million.
Melkior holds 328 claim units or 5,248 hectares in Eldorado and Shaw Township located approximately 10 kilometres south of Timmins. The property adjoins Liberty Mines Inc (TSX: LBE) which, following a recent financing by Jilin Jien Nickel Industry Co., Ltd, has resumed nickel production at its Redstone and McWatters Mines. Redstone is approximately one kilometre south of Melkior’s claims.
An airborne VTEM survey has identified several massive sulphide signal targets which will be drilled using a budget of up to $400,000.
Melkior owns 49% of the Kenty Lake nickel, copper, platinum group element deposit in the Raglan belt of Northern Quebec. Previous data is being reviewed.
Melkior is very pleased with the response to its financing led by M Partners and Invespro.
Investors are invited to visit the Melkior IR Hub at http://agoracom.com/ir/Melkior where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to[email protected] where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.
This Press Release was prepared by Jens E. Hansen, P.Eng, President of Melkior, Qualified Person under National Instrument 43-101.
Melkior is a junior exploration company with active exploration projects in West Timmins and the Mc Faulds “Ring of Fire” areas of Ontario. Melkior also holds a 49% interest in the Delta Kenty nickel-copper-platinum-palladium deposit in Ungava and has several other gold properties in Ontario and Quebec.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Melkior’s periodic reports including the annual report or in the filings made by Melkior from time to time with securities regulatory authorities.