64North
Status
Earn-In Agreement with Resolution Minerals
On December 16, 2019 Millrock executed a definitive Option to Joint Venture agreement with Resolution Minerals Ltd. (“Resolution” or “RML”) concerning Millrock’s district-scale 64North gold project in eastern Alaska (the project was previously named the Goodpaster project).
Key Points of Earn-In
Initial Year 1 investment of US$5,000,000 in exploration expenditures to earn 30%;
US$12,000,000 in exploration expenditures to earn 60% in the overall project;
Share payments totaling 50 million Resolution shares;
US$350,000 in cash over the option period;
Resolution may elect one of five named blocks for advanced earn-in; free carry to Bankable Feasibility Study to earn 70%, loan carry to Commercial Production to earn an 80% interest in the selected block.
Sole Funding Earn-In Table
Target
Low angle and/or high angle vein-hosted and stockwork vein intrusion-hosted mesothermal gold systems related to mid-Cretaceous granitic to dioritic igneous activity, intrusive related gold systems, and Cu-Mo-Au porphyry systems.
At the Pogo Gold Mine, owned by Northern Star Resources (“Northern Star” ASX: NST) low-angle veins often manifest in stacked sets of two to four veins, each varying from 3 m to 20 m thick, and contain average grades of 13 grams per tonne gold. The Pogo gold deposit, discovered in 1994-1996, is so far, the “crown jewel” of the Goodpaster Gold District, and the catalyst for the surge in district-wide exploration in the late 1990’s to early 2000s. Northern Star’s operating Pogo underground gold mine produced 300,000 ounces of gold annually, at an average historic grade of 13 grams per tonne, from a series of stacked, shallowly northwest dipping, quartz veins with free gold and minor pyrite and arsenopyrite. Current Pogo Mine resources and reserves stand at 6.9 million ounces of gold, with past production of four million ounces of gold.
Source: Northern Star website.
Millrock cautions readers that this link is provided as a convenience and for information purposes only, and. Millrock makes no representation as to the accuracy, completeness or currency of the information appearing at the link or elsewhere on Northern Star’s website.
Location and Setting
The 64North Project is located approximately 20 kilometers north of the town of Delta Junction and 140 kilometers southeast of Fairbanks. The project lies in the Yukon-Tanana Uplands, characterized by spruce and birch-covered rolling hills which grade into treeless alpine peaks in the northern and eastern project areas. The 80-kilometer Pogo Mine road which passes through the western portion of the 64North Project provides year-round access. Elevations on the project range from 300 m to 1600 m. Treeline is approximately 1000 m in elevation.
Land Status
The 64North Project consists of 692 contiguous State of Alaska Mining Claims which cover approximately 43,000 hectares. Millrock and Resolution share ownership interest (Millrock 58% / Resolution 42%) on all but 34 claims (1860 hectares) upon which Millrock has an option to purchase a 100% interest.
Geology and Mineralization
The Goodpaster Gold District consists of a Paleozoic, amphibolite grade, metamorphic basement intruded by a mid-Cretaceous granitic to dioritic batholith, and coeval stocks, dikes, and sills. Crustal scale faults, conjugate to the Denali and Tintina fault systems, bound the Goodpaster Gold District; the Shaw Creek sinistral fault forms the western edge and the Black Mountain sinistral fault system marks the eastern edge of the Goodpaster crustal block.
Gold mineralization in the 64North Project area is predominantly hosted in quartz sulfide veins with associated silicate and carbonate alteration of the host rock. Gold vein occurrences define an approximately 50-kilometer east-west trend along the south side of the Goodpaster Batholith granite; gold vein occurrences also define an approximately 32 kilometers northeast-southwest trend along the southeast side of the Shaw Creek fault which intersects the Pogo Trend on the West Pogo Focus Area. A number of intrusive bodies throughout the district also host disseminated gold mineralization and are potential low-grade bulk tonnage targets.
Recent Exploration Implications
As a result of the 2019-2021 exploration efforts, new and significant implications have shifted focus to the Tourmaline Ridge prospect in the West Pogo area.
A major northwest-dipping dilational shear zone was intersected in two 2020 diamond drillholes at the Aurora Prospect. One of these intercepts included a 7m thick quartz vein. Although lacking significant gold grade, the vein was consistent with Pogo-style alteration and mineralization, including a 4:1 bismuth to gold ratio.
Structural data collected from oriented drill core projects the shear beneath the Tourmaline Ridge prospect, where a large (1800 x 750m) gold in soil geochemical anomaly occurs.
Three historical diamond drill holes at Tourmaline Ridge were drilled sub-parallel to the interpreted shear, intersecting smaller and steeper mineralized hanging wall veins.
A 2021 trenching program confirmed surface mineralization at Tourmaline Ridge relates to south dipping quartz veins, which are antithetic to the northwest dipping shear.
The veins intersected in the historical drilling are aligned with both the structural and geochemical results from the trenching and support proposed drill holes be drilled to the SE to best intersect the shallow NW dipping shear zone.
2022 Planned Activities
West Pogo Block:
Spring ELF-EM surface geophysical program to hone in drill targets in the NW dipping shear zone at Tourmaline Ridge
Summer ~2,000m 4-hole diamond drill program at Tourmaline Ridge Prospect
Divide Block:
Analysis of 2021 geochemical assay results from historical core and surface sampling
Analysis of thin sections from historical core to understand mineralogy and contact relationships
Planning and execution of geophysical surveys
Infill airborne magnetics to define magnetite associated with potassic alteration (potential high-grade core of system)
Ground ELF-EM (or DCIP) geophysical survey to define disseminated sulfides associated with phyllic alteration (pyrite halo)
Additional mapping and surface geochemistry to further assess the areas potential for both reduced-intrusive related gold system and Cu-Mo-Au porphyry mineralization.
THE TECHNICAL INFORMATION WITHIN THIS DOCUMENT HAS BEEN REVIEWED AND APPROVED BY GREGORY A. BEISCHER, PRESIDENT & CEO OF MILLROCK RESOURCES INC. MR. BEISCHER IS A QUALIFIED PERSON AS DEFINED IN NI 43-101.