OTTAWA, ONTARIO – Melkior Resources Inc. (TSXV – MKR) (“Melkior”) has received assay results from its recent 1566 metre drill program on its Carscallen gold property in West Timmins, Ontario. Two holes returned broad intersections of significantly anomalous gold mineralization, ranging from 13 to 41.75 metres, within a new geological environment similar to the Wire Gold occurrence, which consist of pyroclastic rocks associated with a volcanic massive sulphide system. A third hole was the extension of previously drilled CAR-61-2010 and intersected gold mineralization within and beyond the contact zone of the granite and mafic volcanics. From the geology, assay results and modelling, the two holes were collared too far eastward of the Shenkman system.
Drill holes CAR-81-2012 and CAR-82-2012 were collared east of the Shenkman zone and were designed to intersect the Shenkman gold zone underlying the volcanic, which was confirmed by previous drilling. A major fault zone was encountered in both holes, which appears to have displaced the zone east of the area tested to date. Broad intersections of gold mineralization were returned within the two drill holes which is encouraging because they appear to represent a major halo around a completely other system that is possibly juxtaposed to the Shenkman system.
Drill hole CAR-61X-2012 was an extension of previously drilled CAR-61-2010. CAR-61-2010 was originally terminated in granite at 350 metres after intersecting the Shenkman gold zone assaying 13.3 metres of 4.84 grams per tonne gold from 272 metres to 285.3 metres (see press release dated Jan. 11, 2011). The hole was extended to investigate the thickness of the granite and the nature of the underlying volcanics. Gold mineralization was intersected within the mafic volcanics four metres downhole from the granite-volcanic contact and within altered mafic volcanic rocks.
NEW RESULTS FROM CURRENT PROGRAM
Interval * (m)
*Note: Reported drill intercepts are not true widths. At this time, there is insufficient data with respect to the shape of the mineralization to calculation true orientations in space.
Volcanic breccia was intersected in holes CAR-81-2012 and CAR-82-2012, and displays strong similarities to volcanic breccia present at the Wire Gold occurrence, which is 500 metres due northeast of the reported drilling and represents a new geological environment hosting gold mineralization. Most of the mafic volcanic units that lay underneath the granite at the Shenkman – ZamZam complex are pillow lavas and massive volcanic flow (mafic in composition). Volcanic breccia and pyroclastic rocks were intersected locally in previously drilled holes CAR-79-2012 and CAR-80-2012 (see press releases March 26, 2012 and April 12, 2012) and these horizons are thicker in holes CAR-81-2012 and CAR-82-2012. These volcanic breccia and pyroclastic units contain a high background in gold which does not reflect the values or thickness typically encountered in the Shenkman – ZamZam complex. Based on these geological observations, Melkior considers holes CAR-81-2012 and CAR-82-2012 to host another geological environment, most likely related to the Wire Gold volcanic complex. The part of drill hole CAR-79-2012, which contains the copper intersection, may also be related to the same volcanic environment as the Wire Gold showing. The nature of the contact between these two different geological environments is most likely a major fault zone encountered in all of the four holes (CAR-79-2012 to CAR-82-2012).
Significance and follow-up
Holes CAR-81-2012 and CAR-82-2012 did not encounter the Shenkman zone at depth because of an unexpected fault zone on the east side of the property. Although the zone was not intersected, the two holes actually hit another geological environment which is juxtaposed with respect to the ZamZam – Shenkman system. This new environment carries a wide gold anomalous background and could represent a large halo around a potentially new gold system or the existing one (i.e. Shenkman). The next drilling campaign will focus on the Shenkman zone west of the fault zone and follows targets along the granite – mafic volcanic contact zone where it intersects the Shenkman veining system. A 2000 metre drill program is planned to begin in the second week of September 2012.
Core processing included descriptive logging and systematic sampling for analysis. The drill core was sawn in half, with one-half delivered to a commercial laboratory and the other half retained for future reference. Assays were submitted to ALS Chemex Laboratories in Timmins, Ontario. The processed samples were submitted to a standard fire assay with AA technique (Au-AA-23) and inductively coupled plasma emission spectroscopy (ME-ICP-41) on a 30-gram subsample. Standards and blanks were inserted randomly into the sample shipments as part of the sampling protocol. For samples returning greater than ten g/t gold, follow-up analysis using fire assay with a gravimetric finish is completed. Following receipt of assays, visual analysis of mineralized intercepts is conducted, and additional analysis may be requested to ensure the accurate representation of the mineralized zones.
This press release was prepared by Dr. Eric Hebert, PGeo, of GeoVector Management Inc., qualified person under National Instrument 43-101. Dr. Hebert has supervised the diamond drill program, logged the core, designed the sampling program and reviewed the quality control information.
Melkior is a junior exploration company with active exploration projects in West Timmins and holds several other exploration properties of which the most important is the 100% owned Launay gold property in West Quebec.
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Melkior Resources Inc.
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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.