Carscallen

Details

Metals of interests: Gold

Ownership: 100 % Melkior

Location : 30 km southwest of the City of Timmins – Accessible by road all year-round.

Surface area : 102 claims covering a total area of 16.03 km2

Highlights :

Significant gold bearing fault structures over 1 kilometre in length with surface work and drilling confirming continuity of the veins. Open on strike and at depth.
In the past 3 years, more than 5389 metres of drilling has been conducted on the property by Melkior, with over 90% of the holes encountering gold.
Drill cores intersected significant gold values including 60.27 g/t over 1.8 metres and 19.8 g/t over 3.3 metres.
The Carscallen gold property is located 5km west of the new Lake Shore Gold mine.

Description:

Drilling of 7 holes was completed on the West Timmins Carscallen property prior to the December 16 holiday break. The gold assay results were disclosed on January 11, 2010 (see detailed result table on January 11 , 2010 press release) for the seven new holes (1959.5 metres) from its 10,000 metre ongoing diamond drill program on its 100% owned West Timmins Carscallen gold project. The property covers 16.32 sq kilometres, is contiguous to Lake Shore Gold Corp. (TSX: LSG) on its eastern and southern boundaries and is located 5 kilometres due west of the new developing Timmins Mine. Nebu Resources Inc. adjoins the Melkior claims on the southwestern boundary.

Drilling resumed on the Carscallen property on January 18 2010 with up to 8,000 metres planned for the next two phases. This program is intended to extend drilling to below the 500 metre level. To date gold has been traced by drilling for over 1000 metres of strike and consistently to a depth of 150 metres (and up to 225m in deeper holes) on the Zam-Zam, Shenkman, Mystery and 1010 zones.

The December drilling was concentrated specifically on the northern portion of the Zam-Zam zone with one hole (CAR23-09) drilled 450 metres to the south of the Shenkman. These holes continued to intersect gold in quartz pyrite veins. The gold-bearing zone near the surface consists of a single thick quartz pyrite vein (between 0.5 to 1m-thick). At depth, the zone is not confined to a single vein but rather consists of a series of thin quartz pyrite veins (< 5cm-thick) at a metre-scale interval. The total width of the altered envelope varies from 5 to 20 metres.

A second zone was intersected near the surface east of Zam-Zam and consists of quartz pyrite veins (see table for grade). The veins are a few cm thick and occur within a ~2 to 5m wide corridor. This zone is clearly distinct from the main Zam-Zam zone and occurs about 80 to 90m above it (east of it; i.e. uphole). The deeper holes continued to intersect this second gold-bearing zone, occurring closer to the main zone (about 30m from it; uphole). The point of intersection could provide greater widths at depth.

Hole CAR23-09 was drilled on the Shenkman zone to test its continuity at depth. It consists of pyrite stringers hosted in a Quart Feldspar Porphyry (QFP) intrusion. The QFP was intersected from 76-93 metres and contains two gold-bearing zones (see table). New zones were encountered above and under the QFP intrusion. They consist of 2-3cm thick quartz pyrite veins hosted in granite (see table). The continuity of these quartz pyrite vein systems in the QFP remain to be tested. The presence of gold in a wide QFP is considered highly promising for the emplacement of gold at greater depths.

Two shallow holes were drilled to improve 3D modeling.

The 8,000 metres program will continue to test Zam-Zam deeper and also to drill Shenkman, Mystery and 1010 to a target depth of more than 500 metres. The zone is still open North of Zam-Zam and at depth (also a potential if the main zone intersects with the secondary one).

Induced Polarization (IP) surveys have detected new structures on the property that will be drilled in an exploratory fashion. These new zones present southward extensions of the Mystery Zone. IP anomalies have also been encountered toward the southwest boundary of the property. More IP surveying is underway.

Melkior is placing a high priority on drilling its West Timmins Carscallen gold property located in the centre of what is becoming a new gold mining district in West Timmins where there is superb infrastructure and a 100 year history of gold production. Melkior is highly encouraged by the consistency of encountering gold as drilling proceeds deeper.

The allocated budget for the West Timmins Carscallen property has been increased following the $6M financing to approximately $3.0 million.

Maps

PROPERTY LOCATION