Melkior has approximately $5m in cash, which permits the company to continue and expand the exploration programme in West Timmins.
Drilling will be focused on the Zam Zam and Shenkman zones, where recent drill intercepts indicate the presence of multiple high-grade, subparallel structures at depth and a possible broadening of the gold mineralised package.
Drilling has commenced, and follows the interpretation of a down-hole induced polarisation survey and careful compilation and geological interpretation of all drilling results till date.
The down-hole induced polarisation survey was conducted by Abitibi Geophysique, and involved surveying a total of 25 drill holes and the generation of a three dimensional chargeability model from surface to a depth of 680m.
A prominent anomaly occurs below a vertical depth of 500m, and below the limit of drilling to date, and three recent holes (CAR33-2010, CAR38-2010 and CAR42-2010) will be deepened by approximately 200 m each in order to initiate testing of this strong anomaly.
Further down-hole induced polarisation surveying of the new drilling will be undertaken to refine the location of this deep target, and depending on results, a long (up to 1,000 m) hole from surface may be necessary to fully test the target.
