Divide

Click here to view enlarged version

Target: Quartz vein hosted gold is the target at the Divide project.  An exceptional soil anomaly nearly 3,000 meters in length and up to several hundred meters wide is evident.  Most samples from within the anomalous zone contain greater than 80 ppb gold.  Within the gold anomalous zone, arsenic anomalies also occur.  Since gold often occurs with arsenopyrite in this geological setting, Millrock is targeting coincident gold - arsenic soil anomalies and locations where gold bearing quartz vein float is observed at surface.  The photograph below is of a sample collected at surface on the property.

Location and Setting: The Divide claim block is located approximately 40 kilometers north of Nome, in western Alaska, on the Seward Peninsula.  Elevation ranges from 150 meters to 470 metres, and the countryside consists of moderate tundra covered hills and mountains.  Some bedrock outcrops exist both in stream cuts and on ridges, but in general the exposure is quite poor.  There is excellent access to the Divide property.  A State-maintained gravel road (Nome-Taylor highway) passes along the eastern edge of the property.  A major airport with daily jet service and a marine port facility are located in Nome, which has a population of 4,000.

Agreement: The property consists of 44 claims held by David Lajack and other private individuals.  The claims have been optioned by Alix Resource Corp.  Millrock has made an agreement with Alix whereby the two companies will split all exploration and property costs equally.  Millrock’s share of cash payments will be US$500,000 over a five year period, and additionally, Millrock will issue 500,000 shares to Alix over the same period.  Upon meeting all the cash and share issuance obligations of the option, the property will be owned mutually by Millrock and Alix, each company with a 50% share.  Millrock will be the exploration operator. The underlying property owner will retain a royalty ranging between 2% and 5% on a sliding scale controlled by gold price. The royalty may be reduced by 1% for consideration of $1 million.

Geology and Mineralization: Underlain by structurally deformed, retrograde greenschist facies metasediments (turbidites and related deep water sediments); the rocks at the Divide Property are of late Proterozoic to Paleozoic age. These same rocks are the source of the alluvial gold deposits of the Nome camp, where approximately five million ounces of gold has been produced by placer mining methods.  The Rock Creek Mine, a lode mine currently under construction by NovaGold Resources Inc., is located approximately 33 kilometers to the southwest.  Gold mineralization at Rock Creek is hosted in a similar geological setting to that at Divide.  Narrow, metamorphogenic, gold bearing quartz veins have been discovered by previous workers.  Mapping has identified a brittle siltstone bed that may have provided a favorable host for larger scale veining and gold deposition.

Exploration Program: Millrock has recently completed drilling of 561.1 meters in five holes at the Divide property.  Interesting quartz veining and arsenopyrite mineralization was intersected.  The following table provides a listing of all mineralized intersections using a cutoff grade of 0.62 g/t.

These intercepts are thought to be close to true thickness, as the holes were drilled nearly perpendicular to the strike and dip of the mineralized vein sets.

A major exploration is planned for 2008. Millrock will operate the exploration program that is expected to cost approximately $1.5 million, with costs borne equally by the partners. The program will consist of:

• Ground magnetic and electromagnetic survey
• Lithological and structural mapping
• Core drilling of ~1,800 meters
• Reverse Circulation drilling of ~ 3,600 meters
• Trenching and channel sampling

The ground magnetic survey will be carried out in March, when snow conditions will permit rapid data calculation. The survey data will aid in identification and tracing of structures, lithological units, and alteration zones in an early June field mapping program. Reverse circulation drilling and trenching will also commence in June. The initial target area will be the Stoneman prospect. At this location, abundant visible gold is observed at surface in talus and weathered, broken bedrock. Further along strike, previous trench sampling returned values of 16.21 g/t Au over 16.76 m. However, drill holes immediately undercutting the trench did not provide results of similar magnitude. To resolve the discrepancy, and to expose the mineralization for thorough observation and evaluation, the company will excavate a large trench or open cut. A bulldozer will be used to strip overburden, and an excavator used to dig trenches across the mineralized zone. Explosives will be used if necessary to expose fresh rock. Channel sampling will be achieved with a diamond saw. The zone will be undercut with a series of relatively closely spaced reverse circulation drill holes. The objective of this portion of the program is to determine if a high grade chute is present in the vein system, and if so, to delineate the resource. If the results warrant, a bulk sample will be collected in a contingent, late season program.

View Latest Divide Report (3.65MB) may require you to install the free Adobe Reader program to view or print this document.

Divide Figure 1: Coarse gold in quartz

Divide Figure 2: Stoneman Ridge Soil Anomaly (Enlarge)
 

Divide Figure 3: Soil anomaly and drill targets (Enlarge)
 
 


Divide Figure 4: Drill in action