Carscallen

Details

CARSCALLEN

Early Stage Exploration – Gold

100% Owned
25,000 metres of drilling completed
High grade grab samples grading 843.72g/t, 601.60g/t, 30.06g/t
Drill results include 8.58g/t over 7.5m, 3.19g/t over 12.4m, 2.64g/t over 13.5m, 4.84g/t over 13.3m, 2.45g/t over 19.89m and 1.86g/t over 12m.
Significant gold bearing fault structures over 1 kilometre in length with surface work and drilling confirming continuity of the zones. Open on strike and at depth.

Overview

Melkior Resources Inc. owns a 100% interest in the Carscallen property in the Timmins West area of northeastern Ontario. The property is located 25 km southwest of the city of Timmins in Carscallen and Denton townships. The property is 5 km west from Lake Shore Gold Corp's operating Timmins Mine, which has an NI 43-101 compliant indicated resource of 3.2 Mt @ 12.24 g/t Au (uncut), for a total of 1.28 Moz of gold. The Carscallen property shares approximately 9 km of common boundary with Lake Shore's property that contains the Timmins Mine and several other promising deposits/advanced prospects. Melkior is exploring the property for gold.

The property consists of 21 claims totaling 104 claim units. Access to the property is excellent, via a series of roads and trails which connect to Highway 101, which forms the southern border of the central portion of the property.

Melkior's exploration is focused in the eastern part of the property; access to this area is via a north-trending road which intersects Highway 101 approximately 6.5 km west of the turnoff to Highway 144. The road gives direct access to the main showings and trenches on the property. The roads and trails are in relatively good condition and a 4-wheel drive vehicle is not necessary for most of the property. In the winter, the main roads are easily maintained.

Geology

The bedrock of the Carscallen property consists mainly of felsic plutonic rocks of the Carlton Lake Pluton in the western part of the property, intruding into mafic metavolcanic rocks of the Deloro assemblage. The rock types observed at the surface and in core include: granite/granodiorite, mafic volcanic rocks, iron formation (sulphide and oxide facies), quartz-feldspar porphyry intrusions/dikes and locally lamprophyre dikes.

Gold mineralization occurs in pyrite-quartz veins/stringers which contain 10 to 50% pyrite. The veins are typically several cm to almost half a meter thick grading generally between 1 g/t Au to 100 g/t Au, and mostly occur within corridors several m wide. Three main mineralized corridors are recognized: ZamZam/Shenkman, Jowsey and 1010. Quartz-feldspar porphyry dikes appear to be spatially related to these mineralized corridors. At depth, near the granite/mafic volcanic rock contact, gold mineralization occurs in the granite within pyrite-rich mafic xenoliths. Gold is also associated with iron formation at the Wire Gold showing in the northeast part of the property.

The property has been intermittently explored since the 1920's. Most of the surface showings were found by earlier workers, and several holes had been drilled into the mineralized corridors prior to acquisition of the property by Melkior. Melkior is the first company to systematically explore the property, and to evaluate the mineralization in a methodical manner.

Exploration

Exploration in 2009 included two ground magnetic and Induce Polarization (IP) surveys, a soil geochemistry survey (B-horizon and Mobile Metal Ion), and the drilling of 21 diamond drill holes. In 2010, Melkior drilled 37 diamond drill holes on the property and surveyed 25 holes with borehole IP. Additional prospecting was also completed.

Magnetic information is useful to deduce the presence of late diabase dikes and to track the iron formation. A Mobile Metal Ion (MMI) survey produced several anomalies that have not yet been completely tested.

Melkior drilled 21 holes totalling 4,111.5 m in 2009 and 37 holes totalling 13,538.38 m in 2010 (including two holes that were extended). Pre-2009 drilling by Melkior was focused on the 1010 mineralized structure and the upper levels and northern parts of the ZamZam/Shenkman zone. Initial drilling in 2009 was mainly in the ZamZam area, following up previous intersections and new IP targets. A new interpretation suggested that an east-west trend was present, and a series of holes (CAR-01-2009 to CAR-16-2009) were designed to test the existence of such a trend. Toward the end of 2009 and into 2010, drilling was spread out, including the 1010 zone, the Shenkman zone, including at depth on the zone, and testing one MMI anomaly (CAR-30-2010; not the main MMI anomaly). Drilling in mid-2010 was focused on the deep part of the ZamZam/Shenkman gold system. The focus shifted during fall of 2010 after a detailed geological interpretation of the drill sections revealed that two major mineralized "corridors" (namely ZamZam and Jowsey zones) intersect each other at a depth of approximately 200 m and could produce wider/thicker targets at a medium depth. Although these intersections were in fact thicker (between 12 m and 14 m), the grade remains however moderate (<5 g/t Au). The position of these thicker intersections is relatively predictable within a 25 m to 50 m range. High grade intersections were also returned from this system, although their distribution is somewhat irregular.

Gold is associated with quartz, carbonate and pyrite veins and stringers, which tend to be preferentially concentrated in the mineralized zones. Veins/stringers range from several mm to 1 m in thickness, and have limited associated alteration (ankerite/sericite within several mm to cm adjacent to the veins). The gold grade appears to be influenced by the proportion of pyrite in the veins and the dominant accessory mineral. For instance, pyrite within carbonate-rich veins/stringers generally has lower grades; where quartz is the dominant accessory mineral, the grades are typically moderate to high, and semi-massive to massive pyrite seems to carry the highest gold values.

Ongoing geological analysis suggests that three features are important in the localization of gold: i) the intersection between the steeply east-dipping ZamZam zone and the subvertical to west-dipping Jowsey zone; ii) the granite/mafic volcanic contact -the contact appears to have been an important fluid pathway, and zones of granite with mafic xenoliths are especially prospective; and iii) the presence of quartz feldspar porphyry dikes. In these three geological circumstances, longer intervals of low to moderate grade material have been encountered. These scenarios are being pursued by drilling in 2011.

There also remains the potential for a major high grade system at depth on the Shenkman zone resulting from the complexity of the structure; i.e. several shear zones, multi-phase folding and/or the presence of QFPs that could result in the thickening and/or duplication of mineralized zones. The presence of strong and pervasive alteration (including fuschite, sericite and ankerite) is significant in some areas and could point toward a major system in the vicinity or at depth under the Shenkman zone.

Maps

LOCATION MAPS

GEOLOGY MAPS

DRILLING MAPS