Oweegee Dome

Status: Available for Option

Target

The Oweegee Dome Property was the focus of a large, hydrothermal mineralizing system that entails a number of  genetically related target types: Au-Cu porphyry (KSM type); VMS Au-Ag-Cu-Au-Zn (Eskay Creek type); and, stratabound Ag-Zn-Pb-Cu (VMS). Seabridge Gold’s KSM Au-Cu porphyry deposit has total proven and probable reserves of 38.2 million oz. gold and 9.9 billion lb. Barrick’s historic Eskay Creek Mine produced >3 M oz Au and 160 M oz Ag at an average grade of 48.4 g Au/t and 2221 g Ag/t. Epithermal Au mineralization is often associated with Au-Cu porphyry deposits in the Golden Triangle e.g., Pretium Resources’ Brucejack epithermal deposit has proven and probable reserves of 6.9 million oz. gold.

Location & Infrastructure

Golden Triangle, ~90 km northeast of the Town of Stewart. The Stewart–Cassiar Hwy 37 passes through the western Tenures; the 344 km, 287 kv Northwest Transmission Line (“NTL”) passes through the Property on the east side of Hwy 37; 5 NTL access roads from Hwy 37 provide access to the stratabound zinc targets on the Delta West Grid (“DWG”); the Deltaic Grid, the principal exploration target is located ~5 km east of the NTL.

Land Status

77 Mineral Tenures comprising ~312 sq. km, Millrock has 100% ownership interest subject to a 2% NSR on 5 Tenures. $245,000 of Assessment work due by Nov. 20, 2016. MYAB Work Permit in place until Dec. 31, 2017.

Geology & Mineralization

An Inlier of Jurassic Hazelton Group rocks is surrounded by Bowser Lake Group sediments and is exposed in the core of Oweegee Dome Property. The differentiated (diorite-QFP) Delta Intrusion is signatured by a large aeromagnetic anomaly and extensive gossan zones. The well-developed structural setting includes Oweegee Dome Anticline and orthogonal fabric, including the prospective Kyba Red Line, denoting the prospective contact between the Upper Triassic and Lower Hazelton Group.  Au-Cu porphyry mineralization (pyrite, chalcopyrite) is associated with an aeromagnetic low that halos the large aeromagnetic high; mineralization is associated with altered (clay, sericite, carbonate, silica, sulfide) explosive QFP breccia. The A Zone on the Deltaic Grid, the principal target, has been outlined by geochemical, geological and geophysical surveys and some diamond drilling over an apparent strike length of ~2 km.  The results of shallow drilling to date include drill hole DDHDC07-03: 0.189 g Au/t and 0.074% Cu over 138.67 m, incl. 0.468 g Au/t and 0.11% Cu over 17.14 m and incl. 0.140 g Au/t and 0.17% Cu over 17.08 m; and, DDHDC96-02: 0.248 g Au/t and 941 ppm Cu over a core length of 80.1 m and 0.262 g Au/t and 0.16% Cu over 24.4 m. Magnetometer and magnetic susceptibility surveys confirm the magnetic low signature of the mineralization correlates with that of the large aeromagnetic low.

The Northwest Zone, located ~700 m west of the A Zone is considered to be the western extension of the A Zone.  Initial geological and geochemical surveys on the large gossan zone have confirmed an interesting Au-Cu porphyry target.

The South Meadow of the Deltaic Grid (~750 m southwest of the A Zone) is thought to be underlain by a felsic dome.  The area is characterized by a number of IP anomalies signatured mainly by conventional Au, Cu and Zn soil anomalies.  IP anomalies D-E were tested by drill hole DDHDC07-04 and have a Zn-Cd-Cu-Ni +/- Co MMI-M signature indicative of base metal massive sulfide mineralization (pyrite, chalcopyrite, sphalerite).  The hole returned two weak gold zones e.g., 0.135 g Au/t and 0.02% Cu over a 34.53 m core length, which were interbedded with a number of base metal zones, the most significant of which returned 0.10 g Au/t, 0.028% Cu, 0.073% Pb and 0.22% Zn over a core length of 11.15 m. The alteration assemblage is mainly characterized by sericite/muscovite/illite-carbonate-quartz-pyrite-sphalerite-galena. The brecciated sulfide mineralization is interpreted as a feeder zone associated with a VMS system possibly related to the aforementioned felsic dome. DDHDC96-05 drilled on the E Zone about 125 m to the west yielded perhaps the strongest alteration in terms of silicification and sulfide fracture fillings, returning a wide zone of anomalous Au, Cu and Zn (0.05 g/t, 0.024%, 0.036%, respectively) over a core a core length of 53 m, including 0.066 g Au/t, 0.034 % Cu and 0.78% Zn) over 6 m.

On the Delta West Grid on the west flank of the Oweegee Dome, the anomalous Ag-Pb-Zn-Cu signature in soils is considered indicative of a buried, stratabound base metal target that has been outlined by geochemical and geophysical surveys. The zones of interest have a combined strike length of >12.5 km.

Exploration Status & Proposed Exploration Program

7 Target Areas identified, 3 of which are considered drill ready (Zone A, Deltaic/ Bear Valley Grids; Zone E, South Deltaic Grid; Central Zone, Delta West Grid).

  1. Zone A, Deltaic Grid: Drill test the eastern extension of A Zone in Bear Valley at depth near interpreted potassic core of porphyry system; and, test the western extension of A Zone as outlined by IP surveying and the strongest Au MMI soil anomaly encountered by GFX in the Stewart Gold Camp: a large, Au-Cu-As-Ag-RRE MES anomaly that is open to the east and west and may be indicative of a precious metal-dominated epithermal mineralizing system. The Mo-Bi-Sb-W-Tl-Nb-Ti MES anomaly and in particular the Ti-Nb components, associated with the southwest area of the Au anomaly appears to be strengthening to the west and may be indicative of an oxide halo developed in association with a deep source region consisting of a felsic dome or a porphyry copper type intrusive complex. The proposed 2016 drill program would entail at least 1500 m of diamond drilling on the A Zone from set-ups on the Deltaic Grid and to the east, on the west side of Bear Valley. With success, the program could be extended to the west to initiate the drill testing of the Northwest Zone.
  2. IP Zones D, E, South Delta Grid: The South Meadow base metal environment offers a number of follow-up drill targets characterized by Au-Cu-ZN. First and foremost, a drill test of postulated VMS system is recommended at depth, perhaps initially below DDHDC07-04. The proposed 2016 program would total ~800 m in 3 holes.

Follow-Up Targets

  1. Au-Cu Porphyry: The Au-Cu porphyry follow-up targets include the western extension of the A Zone i.e., the Northwest Zone & Snowpatch Creek. Other Au-Cu porphyry targets include Glacier Creek (VTEM anomalies 3A, 3B), Northeast (VTEM anomalies 6A, associated with a sulfidized mafic intrusive in the Upper Skowill Creek Area; and, 6B). Follow-up geological and geochemical surveys are required to evaluate the targets.
  2. Au-Base Metal: The Delta West Grid targets are considered secondary to those on the Deltaic Grid, but with the access roads to the proposed target trends, a 2016 Phase 1 follow-up geophysical program totaling $75,000 is recommended to identify the highest priority drill targets. 3D modeling of magnetic data andVTEM anomalies in vicinity of Kyba Red Line i.e., the Jurassic-Triassic contact, are recommendedto establish priority ground follow-up targets as “most of the major deposits in the region occur within 2 km of the regional stratigraphic contact, and there are lithological and structural clues to narrow that window even more” (Kyba, 2014).The CIR Zone is postulated to represent a polymetallic target that has yet to be evaluated on the ground.  Follow-up would focus on VTEM anomalies 4A & 4B on the west and east sides of the ring structure, postulated to be reflective of a volcanic center. Coincident VTEM 5/Aerodat EM Anomalies at a structural junction provides another polymetallic target that requires ground follow-up. VTEM Zone 5 (Upper Skowill) coincides with an unexplored gossan zone previously identified by the historic Aerodat Airborne Survey (Aerodat, 1997)

Agreement and Terms

Millrock is currently seeking potential joint venture partners for the project. If desired, Millrock can serve as 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.”