Nikolai
Status
Available for Option
Target
The Nikolai project hosts Ni-Cu-Co-Cr-PGE mineralization. Several deposit types are possible:
Disseminated Ni-Cu-Co-Cr-PGE mineralization in serpentinized ultramafic rocks (analogy = Crawford deposit, Canada)
Massive sulfide Ni-Cu-PGE mineralization (analogy = Norilsk Mine, Russia)
Remobilized high-grade Ni-Cu-PGE mineralization
Volcanogenic Massive Sulfide (VMS – Besshi style) Cu (Zn-Pb) Au, Ag (analogy = Windy Craggy deposit, Canada)
Location and Setting
The Nikolai project is located 40 km northwest of the town of Paxson, on the southern flank of the Alaska Range. The claims are proximal to paved highways and a network of gravel roads and trails afford ready access to the Canwell claim block. The City of Fairbanks lies approximately 200 kilometers to the northwest. The city of Delta Junction lies 130 km to the north of the project and has many services and amenities that support the Alaska mining community. The main Alaska power line and railway lie 150 kilometers to the west along the Denali Highway.
Land Status
Two separate, adjacent claims blocks encompass the Nikolai project. The Eureka claim block consists of 104 State of Alaska mining claims (6734 hectares) and is 100% owned by Millrock. The Canwell claim block consists of 42 State of Alaska mining claims (2720 hectares), with an option to purchase 100% interest in the claims from the underlying owner. In total, the project covers 94.54 km2 (9454 hectares).
Geology and Mineralization
The project is located within the underexplored Wrangellia Terrane of Central Alaska. A characteristic component of this terrane is the Nikolai Greenstone, an extensive sequence of low-grade metamorphosed Late Triassic flood basalt rocks. Mafic and ultramafic intrusions, the source for the Nikolai Greenstone, along with Permian and Cretaceous felsic plutons, intruded Permian volcanic and volcaniclastic rocks. Wrangellia holds high potential for the discovery of economic magmatic sulfide deposits containing nickel, copper, cobalt, platinum, palladium, iridium, rhodium, osmium, ruthenium, gold, silver, lead, and zinc. Past producing mines and known deposits within the Wrangellia include Kennecott Copper Mines, Windy Craggy, Wellgreen-Nickel Shaw, and White River.
After an initial discovery by Inco Ltd., in 1997, drilling by Pure Nickel Inc. and ITOCHU Corporation, between 2008 and 2013, resulted in the discovery of a >15km mineralized corridor (Eureka Zone) of disseminated Ni-Cu-PGE mineralization associated with serpentinized mafic and ultramafic rocks. Other exploration targets include massive sulfide Ni-Cu-PGE mineralization associated with mafic dikes cross-cutting the ultramafic sequence and remobilized high-grade Ni-Cu-PGE mineralization associated with Cretaceous intrusions. Additionally, Cu-Pb-Zn-Au-Ag mineralization has been discovered in volcaniclastic rocks that may be associated with volcanic massive sulfide mineralization.
Proposed Exploration Program
Millrock has identified a zone of mineralization (1700m x 600m x 300m) at the Eureka Zone that contains potentially economic concentrations of nickel, copper, cobalt, platinum, palladium, and gold. Additionally, Millrock postulates that higher grade mineralization may occur in embayment features at the base of the Eureka Zone, where heavy metals may accumulate during fractionation and crystallization of the ultramafic intrusion. Further drilling is warranted to confirm this hypothesis, along with in-fill drilling on the identified zone of mineralization with the goal of defining a NI 43-101/JORC compliant resource.
A complete data review of the Canwell claims is underway. Based on the results of this review, targets will be ranked based on current data. Additional geochemical and geophysical techniques may be conducted to prioritize drilling targets.
Agreement and Terms
Millrock owns the Eureka claims 100% with no royalties or other burdens. Millrock has the option to purchase 100% of the Canwell claims by performing exploration work totaling US$5.0 million in value, making cash payments of US$500,000 and incremental payments of Millrock shares (5.0 million in total), and granting a buyable royalty. The Company is currently seeking potential joint venture partners for the project. If desired, Millrock can serve as the operator on behalf of an earn-in joint venture partner
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.