Uncle Sam
Status: Available for Option
 Uncle Sam Fact Sheet (2.3MB)
Target: The Uncle Sam property and the surrounding Goodpaster Mining District offer potential for discovery of intrusive-related gold deposits. The target may be a vein-style deposit similar in nature to the Pogo Mine (+ 5 million ounces), located 60 kilometers to the east of the Uncle Sam property, or may be more similar to the disseminated style of mineralization at the Fort Knox Mine (+5 million ounces) located approximately 90 kilometers to the north.
Property: The property consists of 194 State of Alaska mining claims covering a total area of 3,131 hectares. Neighboring claims are owned by Great American Exploration (Gamex) and Stoneboy (a subsidiary of Sumitomo). Millrock has the option to earn a 100% interest in the project by paying a total of US$200,000, spending $US2.7 million on exploration, and issuing one million Millrock shares. The purchase may be accelerated at any point by making any remaining cash payment, share issuance and a bonus share issuance of 500,000 Millrock shares. A 2% over-riding royalty is payable to International Royalty Corporation. The property is available for earn-in joint venture.
Location and Access: The claim block lies 20 kilometers north of the Richardson Highway and 75 kilometers southeast of Fairbanks, Alaska. A network of winter trails provides great access for skid or track mounted drill rigs.
History: Kennecott Exploration (KEX) initiated exploration in the late 1990s and early 2000s after discovery of the Pogo Mine deposits. Kennecott was attracted to the property area by an exceptionally large Bi-As-Sb stream sediment anomaly and staked a block of 553 claims. A detailed aeromagnetic survey and a very coarse gravity survey were conducted. Extensive soil sampling was done on ridges and slopes (north facing slopes and valleys were not sampled). A rotary air blast (RAB) soil/rock chip sampling program was also done, and where outcrop was available, rock chip sampling was carried out. Drilling was done by Kennecott, but in 2003 the property was optioned to Geoinformatics. Midas Gold optioned the property in 2006 and drilled a series of holes but returned the project to Geoinformatics. In total there has been 23 diamond core holes drilled totaling 4,198 meters, and 57 RC holes drilled for a total of 2,844 meters. Kiska Metals inherited the project when they merged with Geoinformatics. Millrock optioned the property from Kiska Metals in September 2009.
Geology, Geochemistry, Geophysics, Drilling and Mineralization:
The property is blanketed by overburden, primarily loess and weathered bedrock. There is little outcrop. The area has not been glaciated. Sillimanite-grade migmatitic schists and migmatitic gneiss of the Salcha River Dome are intruded by felsic magmatic rocks. The rocks are thought to be of similar age and chemistry to that of Pogo. Airborne magnetic surveys clearly define intrusive bodies and structural zones. There is a prominent northwest - trending deformation zone striking across the northeastern portion of the property. Northeast-trending and east-west trending structures are also apparent. At least two intrusive bodies are known and there is gold mineralization associated with each. Soil sampling has identified a gold anomaly of exceptional proportion. It covers an area measuring six kilometers by nine kilometers. The gold soil anomaly occurs within a much larger regional Bi-As-Sb stream sediment anomaly. Drilling to date has resulted in a total of 19 individual drill intersections of greater than 1.0 g/t gold over drilled widths ranging from three meters to 12 meters with a highlight drill intersection of 6.1 meters averaging 10.6 g/t gold. The better drill intercepts are listed in the attached table.
Three key target areas, Wolf, Christmas, and Lone Tree, have been identified on the property as having great potential for additional discovery. These areas are shown on the attached map.
At Wolf, the gold soil anomaly has an east-west trend and transects the northwest - trending deformation zone. A pronounced magnetic low is evident. The soil anomaly is over two kilometers in length and locally quite strong, with many portions exceeding 500 ppb. Prior drill intersection highlights include 4.0 meters @ 3.03 g/t and 11.2 meters @ 2.38 g/t gold. The eastern part of the anomaly, in the heart of the deformation zone has seen little drilling.
The Christmas target is a gold soil geochemical anomaly over four kilometers long that parallels a northeast - trending structure interpreted from airborne magnetics. Some very interesting drill intersections have come from this target area including 5.5meters @ 4.94 g/t gold. Much of the structure and anomaly remain untested by drilling. Weaker portions of the geochemical anomaly may be a function of terrain, overburden and associated sampling problems. These areas have not been drilled.
The Lone Tree target is a magnetic high thought to represent a buried felsic intrusion. Modeling suggests an inverted cone shape. Numerous anomalous drill intersections occur to the northeast. Mineralization is hosted in a shear zone. One of these intersections is from USRC-22: 6.1 meters @ 10.6 g/t gold. Weak to moderate gold soil anomalies are present. There is potential for an intrusion-hosted, disseminated gold deposit similar in style to Fort Knox, especially where structures meet the intrusive contact. The magnetic anomaly and the periphery zones have not been drill tested.
Conclusion and Recommendation
Drilling to date has shown that there is an abundance of gold on the property. The intrusive rocks are highly fertile and the structural regime is favorable. Many portions of existing gold soil anomalies remain untested. Strong potential for discovery of a valuable gold deposit is demonstrated by the results of prior workers. Drilling is warranted.
Large portions of the property, north facing slopes and valleys in particular, have no geochemical data yet magnetic data suggests favorable structures continue in these areas. Some sampling techniques may be able to overcome the challenges presented by permafrost.
Millrock recommends a diamond core drilling and/or RC drilling program to test along strike from the better drill intersections, and to test soil anomalies that have not been evaluated. Additional soil sampling should be carried out concurrently. A phase I budget of $US one million dollars is suggested.
Uncle Sam Figure 1: Project Map (Enlarge)
Uncle Sam Figure 2: Looking South (Enlarge)
Uncle Sam Figure 3: Soils (Enlarge)
Uncle Sam Figure 4: Holes (Enlarge)
Related News Releases:
May 12, 2010
Millrock Provides Corporate Update
November 3, 2009
Millrock Options “Uncle Sam” Gold Property in Alaska from Kiska
|
