Galiuro
Status: Joint Venture
Galiuro Photo Gallery
Target: The target at the Galiuro project is giant, high-grade porphyry copper deposits (+/- gold and molybdenum). The project is located 80 km southeast of the Resolution deposit, which is currently being drilled off by Rio Tinto, and is reported to contain an inferred resource of 1.624 billion tonnes of 1.47% copper and 0.037% molybdenum. Geological evidence of a large scale mineralizing system has been documented at the Galiuro project which is located on the San Manual - Copper Creek porphyry copper trend.
Most of the property is covered by post mineral Tertiary volcanic rocks or alluvium, but projections of alteration, mineralization and structural trends from known mineralization along this trend define the Galiuro area as prospective for porphyry copper deposits. Supergene copper mineralization hosted by Tertiary volcanics may be remobilized from Laramide age porphyry copper style mineralization hidden beneath the younger volcanic rocks as at Resolution. Millrock and its partner Vale Exploration Canada, seeks to discover a large tonnage, high grade porphyry copper deposit that may be mined by open pit or block caving underground mining.
Location and Setting: The property consists of 366 federal mining claims and eighteen Arizona State prospecting permits covering a total area of 6,800 ha. The Galiuro claims are located near the San Manuel and Copper Creek porphyry copper districts in southeastern Arizona, between the small communities of Mammoth and Klondyke, about 80 km northeast of Tucson, Arizona. Topography varies from moderate, to steep and rugged at elevations ranging from 3600 to 5500 feet. Paved highway 77 passes 18 km west of the claim block with access to the edge of the claims provided by dirt road. Access from the east side is provided by dirt roads west of Highway 70 and Klondyke road. The property is remote with limited access.
Agreement and Terms: The target was brought to the attention of Millrock by geologist Michael Schaefer of Tucson, Arizona. A core group of federal mining claims was purchased from Schaefer and a much larger property was subsequently secured with federal mining claims and state leases. Under the terms of this agreement, Millrock paid Mr. Schaefer $20,000 and issued 20,000 shares of the company. A further $10,000 and 15,000 shares has been and will be issued on each anniversary that Millrock holds claims in the Area of Interest defined in the purchase agreement. If commercial production is achieved, Mr. Schaefer will be entitled to a payment of $2 million.
Millrock entered an Option to Joint Venture Agreement with Vale Exploration Canada in March, 2009. Vale is a subsidiary of the giant Brazilian miner Companhia Vale do Rio Doce. Under the agreement Vale may earn a 60% interest in the property by making exploration expenditures of US$3,500,000 and cash payments totaling US$850,000 by December 31, 2012. Vale also has the option to acquire an additional 10% participating interest in the claims if it completes a favorable feasibility study. Millrock is presently the exploration manager. Vale may assume project management at any time. Once the terms of the option have been met and the option exercised, further expenditures will be funded by the parties pro-rata in accordance with their respective participating interests.
Geology and Mineralization: The property is located along the San Manuel / Copper Creek porphyry copper trend east of Copper Creek. The trend is defined by known mineralization at San Manual-Kalamazoo and Copper Creek west of Galiuro, and alteration and mineralization at Four Mile creek on the east side of the property. Magnetic data defines magnetic high intrusive complexes at depth along the trend including Galiuro and Fourmile.
The project area is mostly covered by post mineral Tertiary volcanic rocks and alluvium. Localized occurrences of Tertiary aged supergene copper mineralization along deep-seated structures within the Tertiary volcanics may be copper leakage/remobilization from older Laramide aged porphyry mineralization beneath cover. Outcrops of Laramide aged alteration and mineralization occur on the west side of the property near Copper Creek and in the Fourmile area on the east side.
Millrock and Vale carried out detailed geological mapping in spring 2008. The work demonstrated that the Tertiary volcanic cover is, at least in places, quite thin. An airborne ZTEM and magnetic survey was also done. Results helped image geological relationships below surface and identified conductive zones locally and were targeted by drilling.
Drilling by Millrock and VEC in spring 2010 resulted in the discovery of porphyry copper mineralization and alteration in Laramide – aged rocks hidden beneath Tertiary volcanic cover rocks. While no ore grade intersections were obtained, Millrock geologists are strongly encouraged by the results.
Hole GAL_1001, drilled to 1,591 ft. intersected hematite and goethite rich leach cap and phyllic altered (quartz-sericite-pyrite) rocks with pyrite content of 1% to 2%. Copper oxides and fine disseminated chalcocite replacing pyrite was observed. The intersection from 1,314.5 ft to 1,338.8 ft graded 0.2% Cu over 24.3 ft. Diatreme breccia was also intersected in the hole.
Hole GAL_1002, was drilled to 2,229 ft, and a porphyry system was indicated by acid leached diorite porphyry intersected below Tertiary volcanics at 786 ft. Near the bottom of the hole phyllic alteration (quartz-sericite-pyrite) with 3-4% pyrite and minor chalcopyrite was intersected, as was intrusive breccia with bornite. The sulfides in these two holes explain the ZTEM conductive zones. Two anomalous intersections were obtained in GAL_1002. The first intersection is form 919.0 ft to 929.5' for 10.5 ft grading 0.12% Cu. The second intersection is from 1,924.5 ft to 1,979 ft for 54.5 ft grading 0.06% Cu. The presence of bornite is quite encouraging, as it typically occurs only in unusually high grade porphyry systems such as at the Resolution deposit located 80 km northwest of the Galiuro project.
Hole GAL_1003 was drilled to a depth of 1,979.0 feet. The top 720 feet of the hole cut post mineral Tertiary basalt. Below that pre mineral rocks to the bottom of the hole include a mix of Laramide diorite and andesite with Precambrian sediments and diabase. The presence of diabase is encouraging as it can act as a chemical trap for high grade mineralization similar to the higher-grade portions of the nearby Resolution and Ray deposits that are hosted by diabase. Also, the diabase is cut by numerous magnetite veinlets that may be related to potassic alteration. No significant copper results were obtained from laboratory analysis of the drill core.
Exploration Program: Additional drilling started in the fall of 2010 and has not yet been completed. Results are pending. Additional plans for drilling will be finalized once the drilling campaign is completed and all the results are received, analyzed and interpreted.
Related News Releases:
November 28, 2011
Millrock and Vale Commence Drilling at Galiuro Copper Project, Arizona
September 13, 2011
Millrock Provides Update of Exploration Activities and Results
July 26, 2011
Millrock and Vale Provide Update on Galiuro Project, Arizona
December 3, 2010
Millrock Commences Drilling at Galiuro Project, Arizona
September 7, 2010
Millrock Reports on Drilling Results, Expanded Drilling Program and Property Acquisition at Galiuro
May 12, 2010
Millrock Provides Corporate Update
April 16, 2009
Millrock and Vale Exploration Canada Inc., Working at Galiuro Copper-Gold Project, Arizona
March 3, 2009
Millrock Announces Agreement with Vale Exploration Canada Inc., Galiuro Copper-Gold Project, Arizona
May 20, 2008
Millrock Announces Claim Staking of the Galiuro Porphyry Prospect in the San Manuel Copper District
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