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Millrock Receives Exploration Permit, Reports Progress on Goodpaster Project

Nov 6, 2019 | Monitor

Figure 1: Goodpaster Gold District Location in the Tintina Gold Province.

Millrock Resources

VANCOUVER, BC—Millrock Resources provided an update on the progress it has made on its Goodpaster Gold Project in Alaska, with particular focus on the West Pogo Block.

Significant progress has been made since Millrock and N27 announced on October 17, 2019 that they had executed a Binding Term Sheet concerning the Goodpaster Gold District exploration project. Upon successful completion of the due diligence period, and signing of a definitive agreement, N27 will begin earning an interest in the project through exploration funding, and by making N27 share issuances and cash payments as detailed in a previous press release.

In 2020, Millrock and N27 are planning a $5.0 million exploration program that will include a thorough test of drill targets established on the West Pogo Block.

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Upon receipt of a $250,000 exploration advance from N27, work immediately began. Permits to construct drill roads and drill exploratory holes were received the same week.

An upgrade to Millrock’s existing State of Alaska permit to use the Pogo Gold Mine road was also received.

The road, which leads from the paved highway near Delta Junction, is a state-owned industrial road maintained by Pogo Mine operator, Northern Star Resources. Millrock will enter a Shared Use Agreement with Northern Star. This agreement will help ensure safe road use through communication and defined travel protocols and provide for pro-rata sharing of road maintenance costs. A work campsite has been established at Mile 39 of the Pogo Mine road. This will serve as a base for the work to be done on the Goodpaster project in the coming months. A lay-down area has been cleared at Mile 45.5, located where CSAMT Line 3 intersects the mine road (as shown in Figure 3) south of the Aurora target areas. This will serve as a place to stage equipment and supplies for the planned first quarter 2020 drilling program.

A drill road, leading approximately 6.5 kilometers north from the Pogo Mine Road to the Aurora Creek target areas, is being constructed from the Mile 45.5 lay-down. With the road in place, a water well will be drilled in the Aurora Creek valley. The well will provide a local water source for drilling during the winter months. A water well contractor has been secured.

Figure 2: Millrock claims shown in blue, subdivided by “blocks”: West Pogo, East Pogo South Pogo, North Pogo, LMS-X, Eagle, Shaw, Last Chance, and Divide. Lands owned by others are shown in grey.

Millrock Resources

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The following map illustrates the Aurora Creek target area on Millrock’s West Pogo Block:

Figure 3: Airborne magnetic map showing the location of the Pogo Mine gold vein outlines, Central Lodes (CL) gold deposit, and Goodpaster (GP) gold deposit on Northern Star’s property. Note that gold deposits occur in areas of low magnetic susceptibility (bluish shading) near magnetic diorite intrusions (red-magenta shading). Also, note the presence of CSAMT geophysical survey conductors within the magnetic low areas on Millrock’s claims in the Aurora Target Area.

Millrock Resources

Millrock and N27 inspected drill cores drilled by prior operators at the ER prospect (ten kilometers west of the Pogo Gold Mine) and Eagle prospect (thirty kilometers southwest of the Pogo Gold Mine). It appears that prior workers did not geochemically sample a substantial amount of core left at the prospect’s sites. Numerous sections of the unsampled core are altered by mineralizing fluids, and host arsenopyrite and bismuthinite (gold pathfinder elements arsenic and bismuth minerals) laden quartz veins. The core is being recovered and moved to Fairbanks for re-logging and geochemical sampling.

“Upon successful completion of the drill road and water well by Millrock’s team, the companies will be in a position to execute a $5.0 million drilling program beginning as early as the first quarter of 2020,” Millrock President & CEO Gregory A. Beischer commented. “The compelling drill targets offer shareholders of Millrock and N27 the potential for share price appreciation. New drill intercepts announced recently by Northern Star indicate a gold deposit (named the Goodpaster deposit), with high-grade intersections, just east of Millrock’s West Pogo Block, which is a subset of the overall Goodpaster project. Northern Star’s Goodpaster deposit may trend onto Millrock’s West Pogo block both in the strike directions and down dip.”

Alaska Business Magazine November 2019 cover

In This Issue

Mining in 2019: The Year in Review

November 2019

Following a year when metal prices were both up and down—sometimes dramatically; when international trade squabbles spooked investors to both enter and exit the metals markets; and when mining companies started the year cautiously bullish but ended it cautious bearish, those involved in Alaska mineral exploration, development, and production are once again asking themselves: “Where did we succeed, where did we fail, and where do we go from here?”

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