Melkior eyes iron deposit in West Africa

A letter agreement with the government of Ivory Coast sets the stage for Melkior Resources (MKR-M) to earn up to a half-interest in the Mount Klahoyo iron deposit in the West African nation.

More than US$17 million has been spent on the project, which at last report hosted a reserve of 670 million tonnes of 33% iron in the form of magnetite. This reserve is deemed sufficient to produce 300 million tonnes of pellets. A 1976 feasibility study found that the material has a high purity and can be upgraded to 70% iron.

Melkior has agreed to update the previous study under the direction of Robert Martin, former vice-president of the Iron Ore Co. of Canada. The junior has already received a proposal from Met-Chem of Montreal to update the 1976 study.

Melkior can earn an initial 15% interest by completing a prefeasibility study and issuing 100,000 shares to a state-owned mining company. This interest can be increased to 50% upon completion of a bankable feasibility study and the issuance of US$2-million worth of shares. The state-owned company will hold the remaining interest in the project, which has been deemed “of high national priority.”