Todd Creek

Status: Available for Option, Right of First Refusal Applies

Target

The targets at the Todd Creek claims include Eskay Creek-type gold and polymetallic VMS, and Au-Cu porphyry deposit types. All three of these deposit types are known to occur in the Golden Triangle district, and there are indications of each on Millrock’s claims. Barrick’s historic Eskay Creek Mine, located about 80 km to the northwest, is reported to have produced nearly 3.5 M oz Au and nearly 180 M oz Ag at an average grade of 55 g/t Au and 2500 g/t Ag (Smith, 2008 *1*). Several prospects on Millrock’s claims have porphyry-style features similar to Seabridge Gold’s KSM Au-Cu deposit, which is located about 45 km to the northwest. KSM is reported to be the world’s largest undeveloped gold project based on mineral reserves. Seabridge’s Preliminary Feasibility Study estimates proven and probable reserves total 38.8 million ounces of gold and 10.2 billion pounds of copper (Seabridge, 2017 *2*). Given the mineral endowment of the district, and the mineralization present on Millrock’s tenures, it is worth exploring to see if another company-making discovery can be made.

Location and Setting

The Todd Creek property is located in northwest British Columbia’s mineral-rich Golden Triangle, Skeena Mining Division of British Columbia, about 30 km northeast of the Town of Stewart. Stewart Hwy 37A, the Stewart powerline, and the historic Goat Mine Road bisect the central portion of the property. There are two potential access routes to the northern portion the property.  One is up American Creek, the other would be from the road leading to the Brucejack deposit.

Land Status

The Todd Creek property now consists of one large, consolidated land package that previously was four independent blocks. The four blocks that now comprise the property are: Todd Creek Tenures (100% Millrock), Todd Funk Tenures (Millrock can earn 100%), Poly Tenures (100% Millrock), and Lord Nelson Tenures (“LNT”, which are under option from Teuton Resources). In all, the property is composed of 107 Mineral Tenures comprising 150.2 square km. Of these, 62 tenures are owned by Millrock Resources Inc., and 42 are under option. This is a district-scale land package measuring roughly 28 km in length and 11 km in width. Assessment credits can be spread across the whole land holding. All tenures are in good standing until at least November 20, 2017. ‘Multi-year area base’ (MYAB) Work Permit MX-1-583 in place until March 31, 2018.

Geology and Mineralization

At the Todd Creek tenures, VMS attributes are distributed along a 10 km strike length of the Todd Creek Fault as part of the Golden Triangle regional structural connectivity, and are associated with mainly pyroclastic rocks and felsic stratigraphy of the prospective Unuk River/Betty Creek/Dilworth Formations of the Lower-Middle Hazelton Group (Molloy, 2016 *3*). Regionally, the Stuhini-Hazelton stratigraphic contact is a prospective indicator for formation of major metal deposits in proximal Hazelton Group rocks associated with clastic sequences and large-scale faults (Stokes, 2015 *4*; Nelson and Kyba, 2014 *5*).

The Todd Creek Fault has been the focus of one or more large hydrothermal systems that have resulted in a variety of genetically interrelated styles of mineralization including epithermal veins, Kuroko VMS type brecciated feeder zones and laminated syngenetic sulfides. Favourable geology includes rhyolite flow breccias and stacked exhalite and felsic horizons along with numerous showings and significant drill intersections. Some of the breccias have identical textures and appearance to breccias from Eskay Creek (Molloy, 2016).

Note to readers: the numbers presented in the table below are historical in nature. Readers are cautioned to carefully read the explanation and cautionary statements that immediately follow the tables.

Table: Main mineral showings at Todd (Molloy, 2016)

Name
Mineralization Type
Description
Waterfall
Au-bearing specular hematite
Prospectively altered felsic stratigraphy at structural junction of Todd Ck Fault with over 200m length of mineralized outcrops.
Orange Mntn
py-cpy-sphal-gal
Major alteration zone where breccia, and gossan + barite + qtz-ser-py alteration indicate high level VMS environment.
Fall Creek
Au-Cu VMS feeder
Felsic stratigraphy with many EM, IP, and mag anomalies.
Yellow Bowl
Massive sulfide veins
Exhalite horizon w/ felsic dome, gossan, qtz-ser-py alteration, EM anomalies.
South Zone
VMS feeder
Historic resource of 207,000t grading 5.48 g/t Au, + Cu credits (NI 43-101 non-compliant, Hemlo Gold Mines Inc., 1988 Annual Report).
VMS
Cu-Pb-Zn-Ag VMS type
Brecciated VMS feeder zone, 2008 discovery. Up to 0.447 g/t Au, 58.2 g/t Ag, 3.73% Cu, 6.46% Zn (#427004).
Rhyolite mylonite
High Ag, Au, Cu, Pb
Proximal to VMS- exhalite horizon w/ ser-py altn. Up to 10.7 g/t Ag over 2m (#430545).

The historical resource estimates mentioned for the South Zone is for historical purposes only and is not compliant with CIM definition standards for Mineral Resources and Mineral Reserves, as defined under NI 43-101. Though considered relevant by the Company, the Qualified Peron responsible cannot be certain that the historical estimates are reliable. The Qualified Person has not done sufficient work to verify the result reported by Hemlo Gold Mines. The Company is therefore not treating the historical estimate as a current mineral resource.

The central portion of the property upon which the Poly tenures are located 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 Poly Tenures and LNT. Felsic stratigraphy of the Mount Dilworth Formation also occurs in proximity to the gold and base metal targets along the Del Norte Trend south of the LNT on tenures owned by Teuton Resources. The Mount Dilworth Formation 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.

At the Poly tenures, a VMS horizon with an apparent strike length of over 7 km has been delineated through multi-element anomalies in rock and soil samples, IP anomalies, and prospective drill intersections. Highlights include drill intersections of up to 0.67 g/t Au, 6.33 g/t Ag, 451 ppm Pb and 2281 ppm Zn over a core length of 25.2 m, including 5.17 g/t Au, 49.19 g/t Ag, 3103 ppm Pb and 17848 ppm Zn over a core length of 2.55 m in diamond drill hole P06-04 (Molloy, 2016).

Proposed Exploration Program

It is recommended that further work be conducted at the Todd Creek Property. The following two-staged program is proposed:

Stage 1: Office preparations and field work

1)   Analyzing and interpreting all historic data to compose a 3D model of the property will further define mineralization trends and prioritize exploration targets.

2)  Field work consisting of taking ~ 170 stream sediment samples and prospecting newly exposed showings at the toe of retreating glaciers. In addition, mapping, high density geochemical samples at targets and property-wide fill-in samples, and targeted ground geophysics to better define both drill targets and the constraints on the VMS zones.

3)    Little exploration work has been conducted at the Todd tenures since 2008, while glaciers continue to rapidly recede and exploration targets continue to emerge on an annual basis. There is potential to find new mineralized zones in outcrops that were previously ice covered, therefore reconnaissance mapping and prospecting should be carried out, especially in the immediate area at the toe of the By Glacier.

4)  Property-scale lithological mapping and alteration characterization to discern between VMS related systems and porphyry systems.

Stage 2: Diamond drilling to follow-up on results of Stage 1 and historic work.

5)  Drilling at Todd would test for large tonnage VMS targets in postulated depositional environments, testing EM anomalies, and testing large structures. Potentially, drilling would also test porphyry targets in the northern part of the Todd Creek property.

6)  Drilling at Poly should be targeted for testing VTEM anomalies, VMS zones, and to delineate footwall mineralization.

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. Millrock has granted a Right of First Refusal to Sojourn Ventures Inc.

References Cited:

1 - Smith, Scott, 2008, Barrick Eskay Creek Mine Closure, 2008 Minerals North Conference presentation, p. 16.

2 - Seabridge Gold Inc., 2017, Kerr-Sulphurets-Mitchell Project, www.seabridgegold.net.

3 - Molloy, D.E., Assessment Report on the 2016, Phase Exploration Program carried out on the Todd-Poly Property, p. 73.

4 - Stokes, Lesley, 2015, BC Survey’s ‘Red Line’ a Game Changer for Explorers, in The Northern Miner p. 5.

5 - Nelson, J., and Kyba, J., 2014, Structural and stratigraphic control of porphyry and related mineralization in the Treaty Glacier – KSM – Brucejack – Stewart trend of western Stikinia. In: Geological Fieldwork 2013, British Columbia Ministry of Energy and Mines, British Columbia Geological Survey Paper 2014-1, pp. 111-140.

“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.