Melkior Resources Inc. provided an update on a December, 2015 drill program and compilation work performed on its wholly owned Carscallen gold project which is located approximately 25 kilometres west of the centre of Timmins Ontario and 5.5 kilometres west of Lake Shore Gold Corp.'s Timmins West Mine. The Carscallen property shares a roughly 6 km long border with Lakeshore's Timmins West property. The 405 metre (5 hole) drill program was designed to target near surface gold mineralization in veins within surficial granitic rocks overlying regional volcanic rocks.

Hole MKR-15-05 was drilled to test the Aumo Zone where drilling last year by Melkior intersected 39.2 g/t gold over 0.3 metres (MKR-14-03). The current hole intersected 4 zones of mineralization from 41.7 to 46.1 metres. The best analysis in this hole was 303 ppb gold over 1 metre.

In addition the mineralized sample from the 2014 drilling was quartered and re-analyzed. The re-analysis contained 82.3 g/t gold indicating the possible presence of coarse gold and 71.1 g/t silver. The 2015 drilling has confirmed the existence of a continuous structure here that will be investigated in future work.

Hole MKR-15-06 was drilled to test the Jowsey Zone where surface sampling in November found 58.8 g/t gold. Two zones were intersected; one directly under the 58.8 g/t sample and one in the last half of the hole. The zone under the surface sample was found to contain 4.4 g/t over 2 metres.

Hole MKR-15-07 was picked from section work on past drilling. A large section of sheared porphyry was noted in the core. The best analysis in this hole was 106 ppb gold over 1 metre width.

Hole MKR-15-08 was drilled to test the South Zone where past surface sampling produced analyses of up to 3.38 g/t gold. A zone mineralized with quartz and sulphides was intersected in the drilling from 46.5 to 50.5 metres. The zone was intruded by 10-20 cm ultramafic dikes.

This zone was found to contain a weighted average of 293 ppb gold and 0.2 to 1.2 g/t silver over 5 metres. Hole MKR-15-09 was drilled to intersect the Shenkman Zone where previous surface sampling found 43 and 23.7 g/t gold. The best value in this hole was 538 ppb gold over a 0.5 metre width.

A comprehensive compilation and evaluation of past drilling on the property has been launched and is in progress. The majority of past drilling on the property has been focussed on near surface, granitic hosted vein systems. This strategy has been very successful in locating quartz hosted veins, well mineralized with gold i.e. the Zam Zam, Jowsey and Shenkman veins. It was observed, however, that the veins were usually truncated at the contact between the upper granitic rocks and the lower mafic volcanic rocks.

Shearing and faulting has been observed at this contact leading to the conclusion that the gold-bearing structure has been sheared and displaced at the contact. This work has located one of these vein systems in the underlying mafic volcanic rocks. Based on the strike direction and location, this zone could be the down-dip extension of the Zam Zam Zone.

This new zone has been traced for approximately 700 metres by past drilling and is characteristically associated with pyrite mineralization. Past work noted the volcanic hosted gold mineralization in individual drill holes, however, the recent compilation work has aided in proving these intersections are related and part of a larger structural system.