In keeping with the market expectations and sentiment as of late towards junior resource issuers needing to be in a position of resource development in parallel to ongoing exploratory advancements in order to be kept in favor for further financing, Melkior is in the necessary position, if not obligatory, of producing a 43-101 report which would at minimum, outline a gold resource that would serve as an initial starting point.
The Carscallen Gold Project at this point in the exploration phase, does have the requisite fundamentals in place in order to start developing a preliminary gold resource model and when combining this element with the former objectives above, reinforces the companies position towards focusing on outlining a near surface (outcropping) gold resource prior to delving deeper into the project base. In other words, the development of the shallower systems will support the vectoring of exploration towards the origin of the narrow surface mineralization where the greatest potential lays for a large scale gold system.
The above quotation taken from the November 26th, 2012 press release is very significant for things to come.
"Limited deeper drilling into the volcanic rocks below the granite cap has revealed a large alteration system suggesting potential for an important volcanogenic and gold mineral deposit."
There is significant evidence in place which points towards the potential for a very large scale gold deposit residing within the area of the property which lays between the Shenkman and the 1010 zone. As deeper by the company to the west of the Shenkman Zone has revealed a "large alteration system" (one which has been conspicuously absent in past drilling historically) it would be reasonable to be more optimistic, that future deeper drilling within the region in which alteration volumes are more prominent, would hold considerably greater capacity to return greater gold volumes as well and as such, the current focus on establishing a baseline resource would be the reasonable thing to do as such programs have commonly resulted in future deep holes resulting in the gradual vectoring towards the primary target of interest. In consideration of the interpretation and opinion which exists on this end which points to the potential for a super size gold deposit to exist at depth between the Shenkman and 1010 Zone, that the development of the shallow precursor level gold environment would be a beneficial element to undertake in order to pave the way for deeper origins attached to the above.
The current share price is an obvious entry point for long term holders