- Advancing four projects located in gold-rich areas of Canada
- Has C$110 million option and JV deal with Kirkland Lake for Carscallen asset
- Solid management team with 30% of the company owned by management and insiders
What Melkior Resources Inc does:
Melkior Resources Inc (CVE:MKR), a junior explorer, wants to make the next major gold discovery in Canada.
The company has a diverse portfolio of gold and base metal projects in major mining camps in Ontario and Quebec.
Its Carscallen gold project, which spans 320 claims over 47 square kilometres (sq km), lies in the Abitibi Greenstone belt, 25km west of the mining city of Timmins, and has good access and infrastructure.
This year's drilling has validated the high-grade system and volcanogenic massive sulphide (VMS) potential, the firm has said. Within the Zam Zam and Shenkman Zones there has been 37 historical drill intercepts over 25 grams per ton (g/t) of gold.
The firm's Val d'Or project comprises 120 claims, covering around 6,000 hectares (ha) and a summer till program there identified four targets.
Its Maseres gold project in the Urban Barry greenstone belt lies 14km southwest of the Osisko Black Dog deposit. Melkior believes the Maseres project may be situated on a prospective gold-rich, Bousquet type, VMS environment.
Finally, the wholly-owned White Lake gold project in Ontario lies around 15km northeast of Barrick Gold's (NYSE:GOLD) Hemlo gold mine, where there are five priority exploration areas.
Samples from the project's Carrol-MacDougall occurrence confirmed its gold-bearing nature with 1,168 g/t gold and a 2018 high-grade grab sample of 82 g/t gold.
How is it doing:
Excitement at Carscallen began in winter, 2019 when a drill intercept hit 8 metres (m), over an impressive 23.5 g/t gold, and follow up holes begun in March hit a further 6m at 25.7 g/t of the yellow metal and Melkior started seeing more sulphides and base metals mixed in.
By May this year, the firm said it believed it had discovered a new VMS environment at the site.
On September 28, Melkior unveiled a landmark deal with Kirkland Lake Gold Ltd (TSE:KL), which will see the major miner advance the Carscallen project in Ontario as operator, and have the right to earn up to a 75% stake.
Kirkland must commit a minimum of C$3 million in the first two years with the potential of C$110 million in work commitments over the next five to ten years to attain a 75% interest in the property.
If the first phase is completed, to earn 50% by spending C$10 million, the firms will enter into a joint venture (JV), where Kirkland will have the right to earn an additional 25% by incurring exploration expenditures of C$100 million within the first five years from establishing the joint venture. Melkior will retain a 25% interest.
"Melkior shareholders now have the upside of having a world-class operator take the Carscallen gold project to the next level," said Melkior CEO Jonathon Deluce.
And in August this year, the firm announced results from soil sampling undertaken in July this year, which showed strong gold anomalies across the property and four distinct targets were identified.
The highest gold soil return was 277 parts per billion (ppb) gold as well as a boulder sample that ran 14 g/t silver.
- Further exploration results at Carscallen from Kirkland
- Precious metals price moves
- Exploration results from Val D'or
What the boss says:
Speaking to Proactive on September 29 this year, Melkior chief executive Jonathon Deluce described Kirkland Lake Gold as the best fit to be a partner for Carscallen, with its experienced team and history of exploration success.
"Tony Makuch (CEO at Kirkland) was the original mine builder of the West Timmins gold mine, which is now owned by Pan American Silver and the Carscallen shares 9km of border with that so their team knows the geology very well," he said.
With the operatorship of Carscallen now in Kirland's hands, attention turns to the firm's other projects, notably Val D'or which is the priority. Deluce explained that the firm here was designing an induced polarization (IP) study and/or a magnetic survey and the company would be drilling at the asset in November or December this year and was fully funded to carry out the work due to a recently completed financing.
Contact the author at email@example.com