Poly

Status: Available for Option

Target

Eskay Creek Mine type precious metal volcanogenic massive sulfides.

Barrick’s historic Eskay Creek Mine, located ~80 km to the northwest, 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 also a target e.g., Pretium Resources’ Brucejack epithermal deposit, located 60 km to the northwest has proven and probable reserves of 6.9 million oz. gold. The Au-Cu VMS environment on the Poly Property is deemed proximal relative to the more distal setting of the Pb-Zn-Ag VMS environment of the BA deposit ~4 km to the west.

Location & Infrastructure

Golden Triangle, ~30 km northeast of the Town of Stewart. Stewart Hwy 37A and the Stewart powerline bisect the property, with additional access to the eastern and northern area of the Property provided by the historic Goat Mine Road.

Land Status

34 Tenures comprising ~120.2 sq. km.  MRO has 100% interest in 29 Tenures (the “PT”); and 5 are under Option from Teuton Resources Corporation (the “LNT”). 24 Tenures in good standing to 2022, 8 Tenures until May 2018; and, 2 new Tenures connecting Poly to the Todd Creek Property are in good standing to Mar 11, 2017; MYAB Work Permit MX-1-620 is good to March 31, 2017.

Geology & Mineralization

The tenures cover Middle Jurassic Hazelton Group stratigraphy on or in the area of the Betty Creek/Mount Dilworth Formation contact with sediments of the Salmon River Formation. Pyroclastic and felsic units in vicinity of the contact host the gold and polymetallic VMS targets on the PT; and, on the LNT contiguous to the south and under option from Teuton Resources Corp.  Felsic stratigraphy of Mount Dilworth Formation also occurs in proximity to the Teuton gold and base metal targets along the Del Norte Trend south of the LNT; and, also hosts the historic Eskay Creek precious metal rich VMS deposit, ~80 km to the northwest in the Iskut River area of the Stewart Gold Camp.

A VMS horizon, the X-LNX Zone has an apparent strike length on the PT and LNT of over 7 km and is signatured by multielement anomalies (MES) in rock and soil samples; by IP anomalies on the Upper PT; and, drill intersections up to 0.67 g Au/t,  6.33 g Ag/t, 265 ppm As, 25 ppm Cd, 136 ppm Cu, 451 ppm Pb and 2281 ppm Zn over a core length of 25.2 m, including 5.17 g Au/t, 49.19 g Ag/t, 864 ppm Cu, 3103 ppm Pb and 17848 ppm Zn over a core length of 2.55 m in DDHP06-04.  To the south, a zoned VMS type Au-Cu-Pb-Zn-Ag MMIM soil anomaly signatures the target on the Lower Poly grid. A classic VMS type VTEM anomaly is located on the southern PT on the Classic Grid, ~250 m south of the LPG drill target where the only drill test (DDHP11-02) intersected strong alteration (silica, carbonate, epidote, chlorite) along with vein, stringer and disseminated sulfides (po, py, cpy) mostly associated with Hazelton pyroclastic rocks over most of the 370 m core length. As described by Dr. Fedikow, the character and style of the alteration and mineralization in DDHP11-02 is typical and characteristic of a footwall plumbing system or a feeder zone developed in what is likely the footwall to a large volcanogenic massive sulfide-type deposit. The hole is mainly signatured by ubiquitous Cu-Au anomalies along with lower Zn zones. The hole is also characterized by a diversity of anomalous metal associations e.g., Au-Mo, Cu-Au and Au-Ag-Cu-Pb-Zn; and, prominent alteration zones that include Li-Na-K depletion and Ca enrichment.

An untested AeroTEM conductor signatures the X-LNX Zone on the LNT and is associated with stacked rhyolite units near the sediment contact. The target is signatured by an anomalous soil MES that includes Au-Ag-Cu-Pb-Zn-Cd-As-Sb.  The A Domain felsic volcanic boulders on the South Ridge Bowl Grid are often characterized by a distinct anomalous MES of Au-As-S +/- Fe, with Au values ranging up to 6.55 g Au/t.  The B Domain CTVBX samples have a somewhat different anomalous MES: Au-As-Cu-Sb-S-Fe +/- Ag, Pb. Four samples of the sulfide zone in the altered CTVBX 724900 boulder average 5.85 g Au/t, 10.8 g Ag/t and 0.66% Cu. The apparent source of the A Domain auriferous boulders was discovered in 2014 on the Northwest Target Area Grid as exposed for the first time by the receding North Bowl Glacier.  The silica flooded rocks with anomalous Au contents were found in situ at the Marty and BOC showings and are associated with a large area of iron (limonite) capped sulfidized felsic volcanic and pyroclastic rocks.  Evidence of the proximity of the main target is provided by soil sample 470349 that has the strongest VMS signature ever encountered by Geofine: a very anomalous MES of 490 ppb Au, 26.7 ppm Ag, 55.1 ppm Cd, 5480 ppm As, 214 ppm Cu, 4630 ppm Pb, 3530 ppm Zn, 201 ppm Sb, 30.2 ppm Mo and 11.85% Fe. The sample was taken in close proximity to chip sample 470321 from the Marty Zone that returned 248 ppb Au, 1.6 ppm Ag, 14.2 ppm Cd, 9070 ppm As, 240 ppm Pb, 545 ppm Zn, 18 ppm Sb and 1.26% S over 1 m.   The strategic importance of the soil sample is related to the exploration model: the VMS target is postulated to be hosted by pyroclastic and felsic volcanic rocks haloed by the quartz-carbonate stringer mineralization discovered in 2014 at a number of in situ locations on the NWTA.

The 2016 follow-up exploration rationale for the postulated VMS mineralization in the NWTA is also enhanced by the specific targets delineated by the geophysical compilation of the historic airborne data including the tilt angle derivative magnetic anomalies and associated, interpreted structures and zones including B and B2. In addition to the attributes of the NWTA, the F geophysical zone is located on the Ridge Grid in the hanging wall rocks of the LNX Zone. The target comprises a weak magnetic signature coincident with an electromagnetic response on the west flank of the historic Ridge Grid below soil and rock geochemical anomalies.  The D geophysical zone is located on the Creek Grid ~ 1.8 km south and ~900 m below the Ridge Bowl Grid. The zone is hosted by the footwall rocks of the X-LNX Zone and signatured by an anomalous MES in the 2011 soil samples.

The X-LNX Zone extends to the south on the Teuton Resources Del Norte Property and is associated with a number of auriferous zones over significant widths e.g., at the K Zone where drill hole DDH2002-3 intersected 0.223 oz/ton Au and 8.09 oz Ag over 23.4 m.

In addition to the X-LNX target, evidence of epithermal vein mineralization has been found on the Upper Poly grid where mineralized vein material has returned up to 123.3 g Au/t, 1897 g Ag/t, 0.85% Cu, 5.79% Pb and 0.47% Zn; and, 17.45 g Au/t, 9980 g Ag/t, 1.74% Cu, 0.17% Pb and 2.06% Zn. 

Proposed Exploration Program & Apparent Drill Targets

The NWTA on the LNT is currently the highest priority target for Eskay Creek type VMS mineralization on the Property. Detailed geological, geochemical and geophysical surveys are required to follow-up the initial 2014 work on the Marty Zone and to cover the area of the anticipated 2016 recession of the Ridge Bowl Glacier including the Western Gossan.  The Phase 2 program would focus on diamond drilling, with some initial drill targets already apparent on the Marty, F, LNX and the D Zones.

A drill test of the X-LNX Zone is proposed on the Lower Poly Grid where the large, zoned Au-Ag-Cu-Pb-Zn VMS type MMI anomaly (the “LPG Zone”) has been delineated under the Stewart Power Line and beside Hwy 37A. Three drill holes have been spotted: DDHP16-01 would test the central Ag-Cu-Pb-Zn lobe of the target near the southern extension of the X Zone.  DDHP16-02 would test the Ag-Cu-Pb-Zn area of the anomaly near the Stewart Power Line and Hwy 37A.   DDHP16-03 would test the Au-Ag-Cu-Zn anomaly associated with the Northwest Gold Zone.

Follow-up drilling is also recommended on the Classic VTEM anomaly. The short strike length conductor has a positive magnetic signature and is located about 250 m south of and 200 m vertically above the LPG and trends northwest onto the LPG in the south central area of the VMS type MMI soil anomaly referenced above. The anomaly dips between ~55 degrees to the west to near vertical and is signatured on the Classic Grid (“CG”) by a gossan that trends northwest into Strohn Creek Valley.  A 2016 helicopter supported follow-up program including at least 2 drill holes totalling about 1000 m, is proposed as a further evaluation of the Feeder Zone on the Classic Grid and its northwest extension onto the LPG in the Strohn Creek Valley.

Follow-Up Targets

  1. Precious Metal VMS: The Au-Ag-Cu MMI anomaly on the northern segment of the Cottonwood Grid remains open and detailed follow-up geological and geochemical surveys are required to locate and prioritize drill targets. The anomaly is interpreted as the western extension of the LPG MMI Zone, about 900 m to the east.
  2. Epithermal Veins: The numerous occurrences and talus boulders of Au-Ag polymetallic epithermal vein material found in and in proximity to Hwy Creek on the Upper Poly Grid require detailed follow-up to establish target morphologies and priority for budget allocation.
  3. Au-Cu Porphyry: A possible Red Mountain deposit type Au-Cu environment appears to have been defined by the geological, geochemical and geophysical surveys on the Swimming Pool Grid (“the SPG”) located about 1 km southwest of the Classic Grid.  The SP quartz monzonite intrusion is signatured by a positive magnetic anomaly; and, MMI anomalies are associated with altered Hazelton pyroclastic rocks located on the north flank of the magnetic anomaly. As interpreted by Dr. Mark Fedikow, the SPG is marked by a very high-contrast Au Response Ratio of 102 times background.  The trend of the Au anomaly and the correspondence with base metal responses (Pb, Zn, Cu) indicates that the anomaly remains open to the northwest towards the Cotton Wood Grid. Elevated Ag responses are concentrated in the southeast survey area. Some correspondence is noted between Au and Ag, particularly for the highest response ratios for both elements. Follow-up surveys would focus on the southwestern area of the SPG that is underlain by a large gossan zone but where little historic work has been carried out.

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. Qualifying exploration expenditures are eligible for a 20% Mineral Exploration Tax Rebate from the Province of BC.

“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.”