Available for Option
Mesothermal gold-quartz (low sulfide) vein systems with greater than 2 million ounce gold resource (10-20 gm/T Au) potential is a valid target on the property. The West Pogo claims control mineral rights along the favorable geologic trend west of Sumitomo’s operating Pogo Gold Mine (underground; >6.5 million oz global reserve). The property is within 3.2 kilometers (2 miles) of the Pogo Mine ore reserves.
Location and Setting
West Pogo is 55 km (34 Mi) northeast of the Town of Delta Junction and 160 Km (100 Mi) southwest of Fairbanks. The 80.7 Km (50 Mi) Pogo Mine road which passes through the property provides year-round access.
The West Pogo property consists of 159 State of Alaska mining claims which cover approximately 6,182 ha (15,278 acres, 22.8 sq mi). Millrock owns 73% of the lands under these claims and have the remaining claims under option.
Geology and Mineralization
Pogo Mine is a high-grade gold-quartz lode system (17 g/T or 0.5 oz/ton) developed on at least three large, tabular, low-angle, quartz-low sulfide veins, 3 – 20m thick (10-65ft). The Pogo ore bodies (L-1, L-2 & L-3) occupy stacked shear zones of limited thrusting displacement under 200m (<600ft).
Subsequent to mine development, Sumitomo exploration has delineated a series of high-angle mineralized structures (North Zone) interpreted as feeder pathways to the low angle tabular vein sets, and likely to become part of expanded development in the underground mine. Down-dip drilling on the main production (low-angle) ore zones has not closed off any of the veins in the northwest direction (toward the West Pogo properties), but continuity and correlation appears disrupted with proximity to the structural corridor inferred beneath Goodpaster River. Looking further “down-dip” toward the West Pogo properties, a similar envelope of disruption can be expected west of the Goodpaster Fault, but overall displacement appears to be on the order of only 1 – 3 km (left-lateral), and not regional in scale. The same geologic units that host Pogo Mine, including the same intrusive compositions and ages, are traced by government mapping and airborne geophysics to extend across the Goodpaster River onto the West Pogo property. Three prospects have been drilled by Sumitomo west of the river (results unknown), the closest being the Hansen Vein 900m from the West Pogo claim boundary (10 – 171 g/T Au from surface samples).
Gold mineralization on the West Pogo properties occurs in regolith samples with gold-bearing quartz veins cutting silicified granitic rocks and gneisses in rubble zones characterized by quartz-arsenopyrite (+/- tourmaline) alteration. Multi-gram gold values (5 to 218 gm/T) are present in surface float in a geologic environment equivalent to, and on trend (down-dip?) from Sumitomo’s POGO Gold Mine 3 km to the east.
Proposed Exploration Program
A 2016 re-logging and surface sampling program has defined a northeast – southwest corridor of anomalous gold values and several east-west quartz vein systems as well as a small low angle northwest dipping quartz vein with similar characteristics to the tabular bodies at Pogo. Drill testing of these two target types is warranted.
Agreement and Terms
Millrock has an option from two parties under the same terms for the 34 claims that Millrock doesn’t own. The option terms are summarized:
Exploration Expenditures: US$500,000 by the year 2021;
Cash: US$240,000 by the year 2020 according to a set payment schedule;
Milestone payment: Aurora will be paid US$1 for every gold equivalent ounce included in or added to the Measured, Indicated and Inferred resource categories by the time a Decision to Mine is made;
Royalty: 4% Net Smelter Return royalty with the ability to eliminate the royalty by paying US$2.0 million.
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.