Melkior drills 2.23 g/t AuEq over 24.5 metres at Genex
Melkior Resources Inc. [MKR-TSXV, MKRIF-OTC], a company backed by Agnico-Eagle Mines Ltd. (AEM-TSX, AEM-NYSE), has released the first drilling results from its Genex project near Timmins, Ontario.
The company said drill hole GEN-22-01 intersected 2.23 g/t gold equivalent (AuEq) over 24.5 metres (0.24 g/t gold, 1.15% copper, 0.52% zinc, and 3.92 g/t silver, including 3.69 g/t AuEq over 7.78 metres (0.32 g/t gold, 2.29% copper, and 5.24 g/t silver), successfully extending the Genex Shaft Zone 50 metres to the northeast.
Genex hosts gold-rich volcanogenic polymetallic mineralization, with comparable targets located in the Rouyn Noranda area of Quebec.
Melkior is an exploration stage resource company. Its flagship Carscallen Project, located in the Timmins, Ontario, mining camp hosts a basket of gold zones and is being advanced by Agnico-Eagle through a $100 million option/joint venture agreement. Agnico holds a 6.0% stake in Melkior.
On November 23, 2022, Melkior shares closed at 24 cents and currently trade in a 52-week range of 37 cents and 17 cents.
Back in April, 2022, Melkior said it had struck a deal to acquire a 100% of the Genex Project from International Explorers & Prospectors Inc. It said the Genex Project is located approximately 20 kilometres west of Timmins and borders the Carscallen Project on its northeast boundary.
The company has described the Genex Project as an advanced gold-copper Volcanogenic Massive Sulphide (VMS) target with significant near-term resource potential. The project consists of 70 claims, and one partial lease covering 1,616 hectares with good access. Underground workings include an 84-metre-deep shaft and lateral development on two levels, completed between 1964 and 1966.
Genex was in production between 1966 and 1967, with 240 tonnes of concentrate (21.45%-27.25% copper) being shipped. The property hosts a historic resource of one million tonnes of copper that is not considered to be compliant with current NI 43-101 standards of disclosure.
Melkior agreed to earn an initial 50% interest in the Genex project by making a cash payment of $250,000 and delivering 2.5 million shares to IEP, it must also incur work expenditures of $2.75 million and contribute $500,000 in assessment credits from the Carscallen project.
Within four years of exercising the first option, Melkior can increase its stake to 100% by issuing another 2.5 million shares to the optionor, which would retain a net smelter royalty of up to 2.0%.
“We are very excited about this strong first intercept and the potential results of the remaining drilling supported by the visual observations announced last week,’’ said Melkior CEO Jonathan Deluce.
The company said drill hole GEN-22-01 was drilled as a step-out hole to test the immediate extension of the historical H Zone at a vertical depth of 50 metres. A semi-massive chalcopyrite vein was intersected from 33.72 to 34.18 metres with a grade of 16.4% copper and 1.46 g/t gold over 0.46 metres.
There are still 105 non-rush samples where assays are outstanding which have the potential to extend this zone.