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Millrock Provides Corporate Update, Drilling to Begin At West Pogo

Feb 5, 2020 | Monitor

VANCOUVER, BC—Millrock Resources provided an update on recent activity and plans.

“Millrock has made some strong advancements through 2019,” says Millrock President & CEO Greg Beischer. “We believe that 2020 will be a watershed year for the company, and we are particularly excited to begin exploration work in earnest at the 64North Gold Project. We will begin with a drill program at the compelling Aurora Target located immediately west of the Pogo Gold Mine in Alaska.”

Airborne magnetic map showing location of the Pogo Mine gold veins, Goodpastergold deposit on Northern Star’s property. The gold deposits occur in areas of low magnetic susceptibility (bluish shading) near magnetic diorite intrusions (red-magenta shading). The presence of CSAMT geophysical survey conductors (red ellipses) within the magnetic low areas on Millrock’s claims in the Aurora Target Area and the Echo Target Area. Red lines are faults that can host gold mineralization.

Millrock Resources

64North Gold Project: Goodpaster Mining District

Initial drilling at the Aurora target on the West Pogo Block of the 64North Gold Project is scheduled to begin in early March 2020. Earn-in partner Resolution Minerals Ltd. reported it had successfully raised $4.5 million to fund the planned work. The initial program will consist of four or five holes totaling 2,000 meters and will test the Aurora target. The target area is located within sight and approximately 2.5 to 3.5 kilometers west of Northern Star’s Pogo Mine. Northern Star reports an endowment of approximately 10 million ounces of gold at Pogo. (3.8 million ounces mined at 13.8 grams per ton gold, 1.5 million ounces reserves at 7.5 grams per ton gold, included in a resource of 5.95 million ounces at 9.5 grams per ton gold, as reported by the ASX listed company. The reserves and resources reported on are not on Millrock’s ground and Millrock has not independently verified the numbers reported by Northern Star.)

More recently, Northern Star has reported the discovery of the Goodpaster gold deposit northwest of the mine, even closer to the mutual Millrock–Northern Star claim boundary and the Aurora target. The Aurora target is a 1.5-by-4 kilometer long zone of low-magnetic rocks adjacent to a late diorite intrusion. The setting is very similar to that observed at the Pogo Mine.

Millrock postulates that the late diorite intruded along a westerly extension of the Liese Creek fault, which is known to have played a key role in the genesis of the Pogo gold deposits. Highly anomalous gold-bismuth-arsenic in soil is documented. High-angle gold-bearing quartz veins have been intersected by prior drilling, however, the few holes drilled by earlier workers did not go deep enough to intersect the low-angle shear zone that is known to host gold at Pogo and the Goodpaster deposit. Millrock believes this structure exists at the Aurora target. From a recent CSAMT survey it appears likely that a favorable shear zone is present below surface. Drilling will begin at the east end of the target. The various attributes of the target are shown on the following compilation map.

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Goodpaster Gold District Location in the Tintina Gold Province.

Millrock Resources 

64North Project Partnership Summary

Resolution can earn up to a 60 percent interest in the 64North Gold Project through exploration expenditures of $20 million, payment of $200,000 cash and issuance of 38 million resolution shares. The minimum commitment for 2020 is $5 million.

Napoleon Gold Royalty: Fortymile Mining District

Millrock has signed an agreement with Northway Resources concerning its Napoleon gold exploration property in eastern Alaska. Millrock previously held claims in this area and owns geological and geochemical information concerning the project. Millrock has sold an exclusive copy of the information to Northway. In return, Northway has granted a 0.5 percent net smelter returns royalty to Millrock on the Napoleon claims, and any claims Northway may acquire in a prescribed area of interest surrounding Northway’s current claim block. 

Dragonslayer Copper-Gold Prospect: Chisna Project

First Quantum Minerals Ltd. was granted an exclusive right to enter an option to joint venture agreement concerning the Dragonslayer copper-gold prospect, a key area of Millrock’s larger Chisna project. A program of stream sediment and soil sampling was carried out in September 2019. Sampling conditions proved difficult, with low gradient streams and thick overburden with extensive organic cover. Despite the poor sampling conditions, anomalous values of copper and pathfinder elements were returned. The work did not clearly demonstrate that a porphyry copper deposit is present; the results are inconclusive. Further exploration work is warranted. However, First Quantum elected not to exercise its exclusive right. Millrock will seek out other funding partners.

Private Placement Equity Financing and Project Generation

Millrock has announced that it will raise $1 million in a non-brokered private placement financing. Existing Millrock shareholders are being given priority. Proceeds of the financing are to be used primarily to acquire early-stage gold projects in the Alaska portion of the Tintina Gold Province.

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In January, when the Biden administration announced its ban on the future sale of oil and gas leases on federal land, the news understandably ruffled the collective feathers of Alaska’s oil and gas industry.

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