Melkior Resources Inc.

Melkior Resources Inc.

March 27, 2008 08:00 ET

Melkior Acquires 50% of 1500 McFauld's Area Claim Units

OTTAWA, ONTARIO--(Marketwire - March 27, 2008) - Melkior Resources Inc. (TSX VENTURE:MKR) is pleased to announce that it has agreed to acquire a 50% interest in approximately 100 claims (1500 claim units) or 24000 hectares in the McFauld's Lake "Ring Of Fire" area of Northern Ontario. The property is located approximately 33 kilometres north east of the Double Eagle (Cu, Ni, PGE) discovery by Noront Resources Ltd. The exact number of claims will be specified when all recording documentation has been received from the Ontario Ministry of Northern Development and Mines.

The property has been staked over the largest gravity anomaly in the McFauld's Lake area. This anomaly is of sufficiently large size and amplitude to suggest that it is a mafic/ultramafic body that could be the central intrusive source for the massive nickel/copper mineralization recently found by Noront. This interpretation would be consistent with the Noront mineralization occurring as an offset dyke from the main intrusive center similar to offset dyke deposits in the Sudbury basin.

It is believed that the gravity anomaly could host world class Ni/Cu magmatic orebodies similar to those found in the Sudbury Intrusive Complex or Norilsk or Voisey's Bay. Supporting this interpretation of possible giant magmatic Ni/Cu deposits are the following points:

1 - Presence of significant gravity anomalies suggesting a large volume of mafic/ultramafic rocks

2 - Presence of magmatic sulfides in this area based on Noront's recent discoveries

3 - Presence of major crustal scale structures

4 - Proximity to the margin of the Archean Craton.

Melkior will pay the owners $350,000 upon approval and undertake geophysical surveys of $250,000 during the first year. Melkior will be the operator and will have a first right of refusal to acquire the 50% retained by the owners.

Two of the six owners are insiders of Melkior namely Jens Hansen President of Melkior and Norman Farrell a director of Melkior. Jens Hansen via his 75% ownership in Geotest Corp. will receive 34% of the $350,000 purchase price and Norman Farrell will receive 10% of the $350,000 purchase price. These percentages represent the contribution of the insiders to the claim acquisition costs. The share ownership by the insiders of the 50% retained by the owners is 21.25% for Geotest Corp. and 6.25% for Norman Farrell.

The McFauld's area is fast becoming the most exciting exploration area in Canada. Melkior will own a 50% interest in one of the largest most prospective areas within the new McFauld's nickel-copper exploration camp.

The acquisition is subject to regulatory approval.

This news release was prepared by Jens E. Hansen, P. Eng, President Melkior Resources Inc., a Qualified Person under NI 43-101.

The TSX Venture Exchange (TSX-V) has not reviewed and does not accept 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 the Company' periodic reports including the annual report or in the filings made by the Company from time to time with securities regulations. The Company undertake no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated event.

Contact Information

  • Melkior Resources Inc.
    Jens E. Hansen