Melkior Resources Inc TSXV:MKR announced drill results from its Carscallen gold project in the West Timmins Gold District of northeastern Ontario. Highlights include
7.12 g/t gold over 1.9 metres
51.92 g/t over 3.7 metres
5.09 g/t over 1.3 metres
1.08 g/t over 1 metres
5.19 g/t over 0.5 metres
President Jens Hansen tells ResourceClips.com, “Carscallen is a property that Melkior has had for about four or five years. It is located in the western part of Timmins. The Timmins camp has produced 70 million ounces of gold since 1910. If you’re going to explore for gold, the best place is in the middle of a camp. The property adjoins Lake Shore Gold TSX:LSG which made a fairly significant discovery on their property [ie, the Timmins Mine] a few years ago. We started exploring Carscallen about four years ago and have been systematically drilling there. There are some seven or eight old gold occurrences on the property.
A small resource in Timmins could be important. But we think we have the potential for a substantially larger resource—Jens Hansen
“We started out on surface by doing surface trenching and sampling,” Hansen continues. “There we got values up to above 800 grams per tonne gold, which is really quite spectacular. So we knew that there was something at surface. On the ground, we traced it for almost a kilometre in one spot. So we decided to systematically drill that. Before drilling it, though, we undertook some geophysics—induced polarization, which is used for detecting sulphides. Sulphides are associated with gold in that environment, so you can pick up the sulphides with the geophysics.
“The first year we drilled down to about 50 metres; the second year we went down to about 100 metres; and the third year we went down to 200-250 metres, and we kept intercepting gold on each campaign. And there were some very, very good values over varying widths. Historically, in that part of the Timmins camp, the values of gold get better as you go deeper, but just one hole won’t do it. You’ve got to systematically trace it, following the clues down.
“The current program we decided to go deeper than we’ve gone before, which is down to about the 500-metre level. The hole we just announced—51.92 g/t gold over 3.7 metres—was deeper than any other hole we’ve drilled before. And as we’ve gone deeper, we’re finding indications of copper as well as gold. This could be indicative of a potential copper deposit in addition to a potential gold deposit. We’ve done geophysics to try and define where the concentrations of copper may be, and that’s going to be the focus of our next drilling program that we plan to start in May.”
When does Melkior expect a Carscallen resource estimate? “I want to make sure we have enough holes to come up with a resource estimate,” Hansen replies. “That really is going to be significant. Bearing that in mind, a resource on a paved road within 25 kilometres of downtown Timmins and within five kilometres of another mine [indicates that] you can have a much smaller resource for it to be valuable than what is needed if you’re up in the territories. We’ve got a paved road on it; we’ve got good access; and you can operate out of downtown Timmins. It’s not a remote place. So a small resource in Timmins could be important. But we think we have the potential for a substantially larger resource. So we are going to drill more.
“Right now the company has $1.3 million, which sounds like a lot, but drilling costs about $135 a metre. So we will start drilling, but we’ll probably be looking at doing some financing in order to undertake and expand the drill program.”
Hansen concludes, “If you look at the junior market right now, it’s probably the most unfairly valued I’ve seen in the last 30 years. Were we to drill a hole like this in a different market from the present one, the stock would not be 20 cents, it would be a dollar. Certainly for a property in Timmins. The junior resources have been severely mistreated. Mind you, I think the juniors have also mistreated shareholders. It’s unfortunate for us and also for the investors, but I think there will be some really good opportunities even in a poor market. We just have to wait for that to turn around.”
Melkior Resources Inc
by Ted Niles