Melkior Resources Inc.

Melkior Resources Inc.

May 06, 2008 08:00 ET

Melkior Acquires More Nickel Claims on Gravity Anomalies

OTTAWA, ONTARIO--(Marketwire - May 6, 2008) - Melkior Resources Inc. ("Melkior") (TSX VENTURE:MKR), has recently increased its land holdings and commenced exploration activity in the James Bay Lowlands where Noront Resources has made a significant nickel-copper-PGE discovery. On March 27, 2008 Melkior announced its initial acquisition of a 50% interest in a group of claims located 33 kilometres northeast of the Noront Eagle One discovery. This property, East Rim Nickel, covers a strong regional gravity anomaly.

Subject to regulatory approval, Melkior will acquire additional properties as follows:

East Rim Nickel:

The East Rim Nickel property consists of 1356 unpatented claim units totalling 21696 hectares. Melkior has previously announced the acquisition of a 50% interest (NR-27-03-08). Following the present acquisition Melkior will acquire the remaining 50%, subject to a 2% net smelter return royalty, 1% of which can be purchased by Melkior for $2,000,000. These claims are on the east bank of the Attawapiskat River and adjoin the "Ring of Fire" (ROF).

West Rim Nickel:

The West Rim Nickel property consists of 909 claim units totalling 14544 hectares. Melkior will acquire all of the vendors' rights in an agreement entered into by Geotest Corporation, Geovector Management Inc. and a third party on March 12, 2008 in connection with the West Rim Nickel property, subject to a 1% net smelter return royalty, 0.5% of which can be purchased by Melkior for $1,000,000. The West Rim Nickel property is 20km due north of the Noront Double Eagle discovery and covers most of a second significant gravity anomaly within the "Ring of Fire".

The acquisition of the properties is made in consideration for a payment of $350,000 in cash and the issuance of 2,500,000 common shares of Melkior.

Two of the six vendors are related parties of Melkior, namely, Geotest Corporation, whose president and director is Jens E. Hansen, who is also President of Melkior, and Norman Farrell, who is also a director of Melkior. The transaction will therefore constitute a "related party transaction" within the meaning of Regulation 61-101 respecting protection of minority security holders in special transactions, which will be exempted from the formal evaluation and from the minority approval with regards to the acquisition of the properties, as neither the fair market value of the securities being issued nor the consideration paid exceeds 25% of Melkior's market capitalization.

Norman Farrell and Jens E. Hansen will not receive any common shares of Melkior and have abstained from voting on the acquisition of the properties.

Following these acquisitions, Melkior will become a significant landholder in the Ring of Fire exploration area. Melkior will own an interest in 2265 claim units or 36240 hectares.

The East Rim Nickel and the West Rim Nickel claim blocks cover the majority of two significant gravity anomalies that straddle and partly coincide with the "Ring of Fire" magnetic trend.

The two gravity anomalies are of sufficiently large size and amplitude to suggest that they are caused by mafic/ultramafic bodies that could be the central intrusive source for the massive nickel-copper mineralization in the area. The major nickel camps of the world such as Sudbury, Thompson, Raglan, Norilsk and others have coincident or are adjacent to regional gravity anomalies and have magnetic signatures. The presence of widespread high grade mineralization in the region, of mafic/ultramafic rocks and of gravity anomalies present a very promising exploration environment.

The ideal way to locate massive sulphide targets that are typically the hosts of nickel-copper mineralization within the "Ring of Fire" and the gravity anomaly environments is to employ deep searching geophysical techniques such as MEGATEM to be followed by ground surveys and drilling. Melkior has completed a MEGATEM airborne magnetic electromagnetic survey by Fugro Airborne Surveys and expects to receive the results within 3 weeks. Potential massive sulphide targets will be followed up by precise ground geophysics and by drilling.

Melkior is well financed to undertake this and other work with more than $4,000,000 in its treasury.

For map showing the location of Melkior's properties with respect to Noront's discovery, the gravity anomalies and the magnetic please refer to Melkior's website:

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
    613-828-7268 (FAX)