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Melkior gets KL Gold vote of confidence

Jul 28, 2020

Mining Life & Exploration News

It will come as no surprise to anyone in northeastern Ontario mining circles that KL Gold now has its fingerprints on West Timmins. On the heels of a terrific exploration news release in early May, Melkior Resources announced that Kirkland Lake Gold had agreed to invest $1 million into Melkior’s Carscallen Project.
 It’s a region that KL Gold President Tony Makuch is intimately familiar with. The west Timmins gold region is home to the Lakeshore Gold Mine, (now operated by Pan American Silver) a mine that Makuch helped build from the ground up many years ago.
“We are extremely proud to announce this landmark equity investment and potential joint-venture agreement with one of the world’s most respected gold mining companies,” said Jonathon Deluce, Chief Executive Officer of Melkior Resources.
“We believe this may provide our shareholders with the upside of discovery with limited share dilution to advance the property. Kirkland Lake Gold CEO Tony Makuch was President and CEO of Lake Shore Gold, from 2008 until its acquisition by Tahoe Resources in 2016. The operation was later acquired again by Pan American Silver, which shares a 9km border with our Carscallen gold project,” added Deluce.
The market liked the announcement as well. Melkior’s share price rose from 27 cents to as much as $1 by the middle of the month.
Under terms of the deal, Kirkland can acquire an option on the Carscallen Property, which is 25 kms west of Timmins. KL Gold will have the right to earn up to a 50% interest in the Property over a five year period as long as they spend money on exploration. Upon completion of the earn in and formation of a joint venture, Kirkland would retain the right to acquire an additional 25% interest in the property over a subsequent five year period.
“Mr. Makuch and his technical team have a comprehensive understanding of the geological setting within the Timmins gold camp, which we felt as a board made this the perfect fit,” said Deluce. “We will continue to focus on advancing our other assets while providing updates as they come available at the Carscallen Project. We want to thank our long-standing shareholders as we look forward to welcoming Kirkland Lake Gold as a strategic partner upon completion of the financing.”
 The news, however, didn’t stop there. On May 21, just days after the KL Gold announcement, Melkior released more drilling numbers that took it into a world other than gold – silver, copper and zinc.
Melkior said it believes it has discovered a new VMS (volcanogenic massive sulphide ) hosted environment in Carscallen in its recent drill program.
The discovery occurred approximately 264 meters south of the current deep drilling program initiated in early March of 2020. The third drill hole, CAR-20-06 tested a mise-a-la-masse (MALM) conductor and encountered strong chalcopyrite (copper), sphalerite (zinc) mineralization, described as clots and disseminations, as well as arsenopyrite, pyrite and pyrrhotite mineralization with visible gold hosted within lithologies such as a previously unknown massive rhyolite which typically hosts mineralization in VMS environments.
Detailed results included: Drill hole CAR-20-06 intersected 5.6 g/t Au and 6.4 g/t silver over 9.5 meters from 486.5 to 496.0 meters, including 23.9 g/t Au over 0.5 meters from 486.5 to 487.0 meters and 67.9 g/t Au with 79.8 g/t Ag over 0.5 meters from 495.0 to 495.50 meters.  The final interval from 495.5 to 496.0 also returned 0.62% copper and 0.27% zinc. In addition, CAR-20-05 which intersected 25.7 g/t Gold over 6.0 meters from 357.0 to 363.0 meters, ( Melkior press release, May 7, 2020)  had previously not been analyzed for the 36 multi-element analysis and has recently returned assays of 3.6% copper and 27.8 g/t Silver over 0.7 meters from 360.5 to 361.2 meters in addition to the 205 g/t Au previously reported. Between 303 and 750 meters, 311 samples were taken, which returned 100% anomalous copper, 100% anomalous zinc, and 88% anomalous gold. Pyritic and pyrrhotitic mineralization was prevalent throughout the entirety of the VMS environment encountered.
 “We are excited with the last of our results from our March 2020 drill program,” said Deluce. “We are very encouraged to intercept high-grade gold veins in our 264-meter step-out hole with indications of metals found within a VMS environment. We believe the Carscallen Project has a lot of potential for both the high-grade gold system and the increased likelihood of being in a VMS environment as well. Hole CAR-20-06 demonstrated consistent anomalous mineralization over 447 meters, and that consistency combined with strong down-hole conductive readings supports us potentially being on the fringe of a VMS system.”

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