Melkior Resources Inc. ("Melkior") (TSX VENTURE: MKR) is pleased to announce that Beaufield Resources Inc. (TSX VENTURE: BFD) has agreed to purchase an undivided 50% interest in the Launay gold property (the "Property"), so that each party will have thereafter an undivided 50% interest in the Property and be equal partners with Beaufield being the operator.
Under the terms of the purchase agreement, Beaufield has purchased a 50% interest in the Property by paying $150,000 cash and issuing 3,000,000 of its common shares to Melkior. The purchase agreement is subject to approval by regulatory authorities in compliance with applicable securities legislation
"We welcome Beaufield's greater involvement in the Launay project. With this agreement, Melkior will be able to focus on its core group of properties, including the Carscallen project where a drill program is planned." stated Sabino Di Paola, Chief Executive Officer.
The Property is located in Launay township, in the Abitibi Greenstone Belt in Quebec. Several gold zones have been defined by historical work over a 3 kilometre trend on the property. In 2013, a drill program on one of these zones identified wide intersections of gold mineralization: -- 3.92 g/t gold over 13.40 metres in hole LAY-15-2013 (January 13th, 2014 news release) -- 6.20 g/t Gold over 10.5 metres in hole LAY-20-2013 (February 18th, 2014 news release) -- 4.04 g/t gold over 15.52 metres in hole LAY-21-2013 (March 18th, 2014 news release) The gold zones are coincident with a north-south striking magnetic axis dipping to the west between 65 to 80 degrees. The mineralization consists of auriferous pyrite grains disseminated in an altered granitic intrusive and within quartz-carbonate veins.
Drilling to date has focused on the near surface portion of the property with very few holes attaining depths greater than 300m. Mineralization remains open at depth and along strike. Additional drilling will be required at depth and between the known gold zones to determine the true extent of the mineralization.
Infrastructure is excellent, with both a highway and railway crossing the property. Electricity is also readily available with several towns located within a 30 kilometre radius. At least five operating gold mills are located within 70 kilometres of property.
This agreement terminate the agreement signed in November 2013, whereas the Corporation had the option to earn an interest of up to 50% in the Property by incurring exploration expenditures totalling $1,250,000 on or beforeNovember 5, 2018. As of today, the Corporation has spent a total of $428,790 on the Property. Under this previous agreement, $821,210 remained to be spent in exploration to earn the 50% interest.
Under the new agreement, a joint venture will be formed for the further exploration and development of the Property (the "Joint Venture"). Under the Joint Venture each party shall have the right to participate in the Joint Venture by funding further exploration and development of the Property.
This news release has been prepared by Mathieu Stephens, P.Geo., Vice President of Exploration and Corporate Development for Beaufield the Qualified Person, as defined by National Instrument 43-101.
Melkior is a junior company with active exploration projects in Timmins and holds other exploration properties including it's 50% interest in the Launay gold property in West Quebec. Melkior also holds a 49% of the Kenty Lake copper/nickel/platinum property with Glencore Xstrata holding the remaining 51%.