The Urban Barry Camp: Melkior Resources looking for a big 2019…

The Urban Barry Camp in the Abitibi Greenstone Belt has gathered quite of a bit of traction in 2018 due to acquisitions, mergers and high-grade zone discoveries from different companies within the camp. Additionally, the area is a big reason why it’s on the radar of so many investors as the Frazier Institute has put Quebec in the top five places globally to do business in mining, which indicates how mining friendly the area is. In fact, the province actually gives companies 38% back for every dollar they stick in the ground for exploration purposes.

Osisko Mining and Bonterra Resources are the current main players in the area due to its institutional investors and progress made in advancing their respective assets. Melkior Resources has also positioned itself to be an emerging player within the area in 2019 due to the progress made on its Quebec project in 2018.

Let’s begin by diving into the Osisko Mining’s story as they are currently developing it’s 100% owned high-grade Windfall Lake gold deposit located between Val-d’Or and Chibougamau in Québec. The property consists of 285 individual claims covering an area of 12,467 hectares. The company currently has 150 million in cash and equities which showcases its financial strength to continuously advance the property. In November 2018, the company announced a stunning 84 g/t over 5.3 meters on the property which is almost unheard of length for such a high grade. Osisko is planning to release an updated Windfall Lake resource estimate update which will be followed by feasibility in 2019.

Like Osisko, Bonterra Resources is in the Abitibi Gold Belt and is currently fast-tracking multiple gold deposits as the companies Gladiator and Barry deposits are on contiguous land claims which solidify Bonterra’s strength in the area. After the acquisition of Metanor Resources, Bonterra controls the only permitted gold mill in the region and has an aggregate land package of 20,815 hectares. Bonterra’s 3 deposits are the Gladiator, Moroy, and Barry.

Gladiator Deposit

The Gladiator Deposit is described as a highly silicified and altered sheared mafic volcanics, locally exhibiting intrusions of syenite and quartz porphyry. Smoky quartz veining also occurs locally containing the bulk of the mineralization and free gold. Mineralization consists of minor (trace to 2%) pyrite, chalcopyrite and yellow sphalerite throughout but especially in and near the contacts with the quartz veining.

Moroy Deposit

The Moroy Deposit is a south-parallel system to the Bachelor mine dipping north towards the Bachelor trend with potential to intersect the main trend at depth. Development and drill programs underway at Moroy with more than 65,000 m of surface and underground drilling completed on to date. In 2019, Bonterra will updated the NI 43-101 mineral resource estimate at the Moroy Deposit.

Barry Deposit

Mineralization at the Barry Deposit has been identified 1,300 m along strike and 600 m at depth. The deposit remains open in all directions, where at least three distinct sub-parallel gold bearing shear zones and secondary tension veins are mineralized. Between 2008-2010, 43,970 ounces of gold was extracted from three small pits at the Barry Deposit. More recently, the focus has been underground development with a ramp underway to begin a bulk sampling program in early 2019.

Next, we have Melkior Resources (TSX-V: MKR)  who is a typical new company within the area but has moved very fast to advance its asset to a stage where it’s on the cusp of drilling.  Let’s take a step back to see when and where Melkior got into the Urban-Barry area.

In 2017, Melkior staked the Maseres Project which is about 14 km southwest of the Osisko Mining Corp.’s Black Dog Deposit and as of today the property is about 12 km by 20 km which is 100% owned by the company.

After acquiring the property,  the company then shifted focus on actively exploring its potential.  In January 2018,  the company conducted an airborne survey which displayed some very intriguing results.  The company announced that the VTEM  survey data supports the hypothesis that the Urban-Barry Greenstone Belt continues south of the Osisko Black Dog Project and crosses Melkior’s Maseres project.

The VTEM displayed a 12 km conductive trend linked into a 4 km by 6 km concentric magnetic anomaly with an outer robust conductive ring anomaly with the anomalous trends centered with the Maseres Project. In public news release Melkior has said:

Melkior is of the opinion the Maseres Project may be situated in one of the most prospective gold rich, Bousquet Type, VMS environments Canada has ever seen.”

The company followed up the airborne with the summer work program that consisted of soil sampling and prospecting.   In October the company confirmed VMS type mineralization on its property as assay results confirm the existence of strata-bound sulphide mineralization within mafic volcanic rock.

Assay results returned maximum values of:

Copper:2,040 ppm

Lead:125 ppm

Zinc:130 ppm

Silver:4.3 ppm

Gold:0.459 ppm

42 samples contained over 9% Iron with 16 of these containing over 9% Sulphur.

Currently, the company is conducting an IP survey which is 35% complete. The company is publishing the pseudo sections on its website (http://www.melkior.com/ip/)  with the ambition of identifying high-quality drill targets. The company recently announced a drilling permit alongside a new round of financing ($800,000)  which sets the stage for an aggressive discovery pursuit in the Urban-Barry camp for 2019 for Melkor.

It’s safe to say that the Urban-Barry camp will be one of the busiest areas in Canada with regards to exploration efforts by companies in 2019. Hopefully, someone can discover the game-changing hole that makes this a world class gold camp.

 


 

Full Disclosure: Melkior Resources is a paid client of the Gold Telegraph.