Melkior Resources Inc.
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Melkior Resources Inc.

July 18, 2016 08:30 ET

Melkior Expands Zam Zam-Shenkman Gold Zone and Intersects 6.5 g/t over 3.12 Metres

OTTAWA, ONTARIO--(Marketwired - July 18, 2016) - Melkior Resources Inc. ("Melkior") (TSX VENTURE:MKR)(OTC PINK:MKRIF)(FRANKFURT:MEK) is pleased to announce the completion of a 2,612 metre drill program on its 100% owned Carscallen Property.

The Carscallen property is located approximately 25 kilometres west of the centre of Timmins Ontario and 5.5 kilometres west of the Tahoe/Lake Shore Gold Corp's Timmins West Mine. The Carscallen property shares a roughly 8 km long border with the Timmins West Mine property.

http://media3.marketwire.com/docs/figure1718.pdf

The drill program was successful in further defining the nature of the volcanic hosted mineralization in the Zam Zam Shenkman zone with an intersection of 6.5 g/t gold over 3.12 metres (CAR-16-101). The northern limit of the zone was extended approximately 170 metres to the north (CAR-16-100). The zone is open in all directions and to depth. In addition previously unrecognized mineralized zones were identified west of the Zam Zam Shenkman zone.

The drill program was done in three phases for three different objectives:

Volcanic Hosted Mineralization

The first objective was to further define the depth and strike extension of the Zam Zam-Shenkman (also called the Greenstone Zone in previous press releases). The area of investigation of the current drilling is gold-pyrite mineralized zones located in mafic volcanic rocks beneath the granitic cover on the property. A total of 1,746 metres, two holes from surface and two hole extensions of previous drilling were drilled in Phase 1.

Bulk Sample

The second objective was to define near surface gold mineralization on the Zam Zam Zone in preparation for a potential bulk sample. Eighteen short holes were drilled for a total of 455 metres. This involves closely spaced holes to determine near surface continuity of one system of veins

Big Marsh Property Exploration

The third objective was to test a coincident IP chargeability, airborne electromagnetic and soil gas hydrocarbon anomaly on the Big Marsh property located approximately 4.7 km north of the Carscallen Property. One hole was drilled for a total of 411 metres.

The data is still being analyzed for Objective 2 and 3 and will be discussed in a subsequent press release.

Results Volcanic Hosted Mineralization

Drill hole CAR-16-101 intersected 6.5 g/t gold over 3.12 metres at a depth of at a down-hole depth of 435 metres (true width not known at this time). CAR-16-101 was drilled 100 metres north of previous drilled hole CAR-80-2012. CAR-80-2012 intersected 51.92 g/t over 3.70 metres (Melkior press release April 12th 2012). CAR-16-101 intersected granitic rocks to about 291 metres down hole and then entered mafic volcanic rocks and ended at 678 metres.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/Figure10718.pdf

Hole CAR-16-100 was drilled approximately 790 metres northwest of CAR-16-101 to intersect an IP chargeability anomaly on strike with the northern extension of the Zam Zam Zone. The hole was drilled approximately 170 metres north of any previous drilling on the property. CAR-16-100 was drilled totally in mafic volcanic rocks and intersected a mineralized zone at a down-hole depth of 274.5 metres that analyzed 1.93 g/t gold over 1.55 metres including 3.84 g/t over 0.55 metres. This intersection, while not high grade, indicates continuity of the mineralization to the north.

Two holes CAR-16-34X and CAR-16-32X were extensions of existing holes drilled in 2010 to determine if more mineralization was present at depth and to the west of the known zones of mineralization. These holes successfully intersected three previously unidentified zones of gold mineralization between the Zam Zam Zone and the 1010 Zone approximately 500 metres to the southwest. Based on projected dips, these zones would sub-crop in an overburden covered area of the property and have not been investigated on the surface or known to previous workers on the property.

Hole-16-34X was an extension of a hole originally drilled in 2010 to 518 metres. The hole was extended an additional 326 metres for a total of 844 metres. Original hole 34 intersected a mineralized zone interpreted to be part of the Zam Zam-Shenkman system that analyzed 3.26 g/t over 2.25 metres including 8.58 g/t over 0.7 metres. The extension of Hole 34 produced the following new or previously unknown mineralized intersections:

Hole From (m) To (m) Width (m) Gold (g/t)
CAR-16-34x 509.5 510.2 0.7 1.47
CAR-16-34x 526.54 527.5 0.96 0.63
CAR-16-34x 542 543 1 0.52
CAR-16-34x 563.45 568.52 5.07 0.55
including CAR-16-34x 563.45 564 0.55 3.03
CAR-16-34x 575 576 1 0.58
CAR-16-34x 577.63 578.57 0.94 4.95
CAR-16-34x 611.86 612.65 0.79 0.81
CAR-16-34x 797.58 798.43 0.85 0.75

Hole-16-32X was an extension of hole CAR-32-2010. CAR-32 ended at 500 metres depth and was extended an additional 304 metres for a total of 804 metres in the present drill program. Previous reported mineralized intersections included 4.73 g/t over 2.5 metres including 10.2 g/t over 0.6 metres and is interpreted to be part of the Zam Zam Shenkman zone. This mineralization was located in the mafic volcanics at a down hole depth of 451 metres. New zones intersected in the extension of hole 32 are listed below:

Hole From (m) To (m) Width (m) Gold (g/t)
CAR-16-32x 529 529.97 0.97 1.06
CAR-16-32x 629.4 630 0.6 2.98
CAR-16-32x 632 632.7 0.7 0.74
CAR-16-32x 645.65 646.45 0.8 1.34

The Zam Zam Shenkman Zone has now been traced by diamond drilling for a distance of approximately 780 metres along strike. Below is a figure showing selected drill hole intersections over the entire length of the Zam Zam Shenkman zone.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/figure20718.pdf

Conclusions

1) The drill program was successful in further defining the nature of the volcanic hosted mineralization in the Zam Zam Shenkman zone with an intersection of 6.5 g/t gold over 3.12 metres (CAR-16-101).

2) The northern limit of the zone was extended approximately 170 metres to the north (CAR-16-100). The zone is open in all directions and to depth.

3) In addition previously unrecognized mineralized zones were identified west of the Zam Zam Shenkman zone.

Recommendations

1) Trace the recently identified, mineralized zones to surface through additional drilling and do some mechanical stripping to expose the zones on surface.

2) Continue to drill the Zam Zam Shenkman Zone below the granitic cover to further define and extend the mineralization intersected to date in Figure 3. This mineralization is open in both directions and to depth.

3) Drill a fence of deeper holes on the order of 1,500 to 2,000 metres each to assess the deep potential of the Zam Zam Shenkman mineralization.

A complete chart of mafic volcanic hosted gold intersections for Phase 1 of the 2016 drilling (including previous reported results for the extended holes) is listed below:

Hole From (m) To (m) Width (m) Gold (g/t)
CAR-16-100 274.5 276.05 1.55 1.93
including CAR-16-100 275.5 276.05 0.55 3.84
CAR-16-100 377.4 378 0.6 0.68
CAR-16-101 277.5 278.36 0.86 0.88
CAR-16-101 435.2 438.32 3.12 6.52
including CAR-16-101 435.75 436.29 0.54 28.60
CAR-32-2010 282.75 283.5 0.75 0.72
CAR-32-2010 294.35 296 1.65 1.71
including CAR-32-2010 295.15 296 0.85 2.51
CAR-32-2010 313.35 313.85 0.5 0.56
CAR-32-2010 315.3 344.2 28.9 0.54
including CAR-32-2010 343.7 344.2 0.5 1.86
CAR-32-2010 450.5 453 2.5 4.73
including CAR-32-2010 451.2 451.8 0.6 10.20
CAR-16-32x 529 529.97 0.97 1.06
CAR-16-32x 629.4 630 0.6 2.98
CAR-16-32x 632 632.7 0.7 0.74
CAR-16-32x 645.65 646.45 0.8 1.34
CAR-34-2010 274.6 275.25 0.65 2.42
CAR-34-2010 294.2 294.8 0.6 1.07
CAR-34-2010 300.4 300.9 0.5 4.99
CAR-34-2010 309.1 309.7 0.6 0.78
CAR-34-2010 343.55 345.8 2.25 3.26
including CAR-34-2010 343.55 344.25 0.7 8.58
CAR-16-34x 509.5 510.2 0.7 1.47
CAR-16-34x 526.54 527.5 0.96 0.63
CAR-16-34x 542 543 1 0.52
CAR-16-34x 563.45 568.52 5.07 0.55
including CAR-16-34x 563.45 564 0.55 3.03
CAR-16-34x 575 576 1 0.58
CAR-16-34x 577.63 578.57 0.94 4.95
CAR-16-34x 611.86 612.65 0.79 0.81
CAR-16-34x 797.58 798.43 0.85 0.75

The contents of this press release have been reviewed by Jens Hansen, P.Eng, and Wayne Holmstead, P.Geo, Qualified Persons as defined by National Instrument 43-101.

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