Status: Under Option to Centerra Gold
The target at Picacho is an orogenic gold deposit with characteristics similar to mines currently in operation such as La Herradura (>6 million ounces Au), Noche Buena (2 million ounces Au), San Francisco (3.5 million ounces Au) and others located in the State of Sonora, Mexico, and the southeast USA. Historic mining at El Picacho exploited high grade vein deposits in zones located along faults.
Location and Setting
The project is located in the north-central portion of the State of Sonora, 18 kilometers southwest of the San Francisco Mine (which is owned by (Alio Gold) and 140 kilometers north of Hermosillo, capital of the State of Sonora, Mexico. This property is 120 kilometers south of the border with the United States and is just 20 kilometers west of the principal highway leading from the town of Nogales to Hermosillo.. The concessions are situated near the friendly towns of Santa Ana and Magdalena. An active railroad passes through the claim area and power is available nearby.
El Picacho property consists of 12 mining concessions totaling 6,500 hectares in good standing in accordance with the Mexican mining law. Millrock signed a deal with both the concessionaire of the mining rights and the surface owner to develop an exploration program.
Geology and Mineralization
Two principal lithological groups are known. The oldest, an igneous-metamorphic complex (amphibolite) of possible Precambrian age includes gneiss, schist, pegmatite and gabbro. The youngest consist of a sedimentary sequence, composed of dolomite, orthoquartzite, sandstone, mudstone, conglomerate and limestone lenses of Jurassic age. These two groups of rocks have been affected by multiple intrusions of diorite and granite as well as andesitic, pegmatitic and lamprophyre dikes. Structurally the rocks are very deformed at the contact in a regional N10-30W thrust fault that juxtaposes the Precambrian rocks above the Jurassic rocks. This tectonic setting has generated a series of subparallel faults that appear to control emplacement of gold mineralization.
Gold mineralization discovered so far is hosted in veins and veinlets of crystalline and milky quartz with thickness ranging from centimeters to 3 meters and length ranging from a few meters to 500 meters long. Sulfide minerals, when present, include pyrite and galena. Gold mineralization is more commonly associated with oxides including copper oxides, limonite ad hematite. Alteration and other minerals associated with higher grades include sericite, siderite, calcite and wulfenite. Abundant subparallel high and low angle veins associated with the thrust faults generally trend N05°-20°E and dip 20°-70°NW.
Proposed Exploration Program
A comprehensive exploration program consisting of structural, lithogical and alteration mapping, combined with rock and soil geochemical sampling and dipole-dipole IP geophysics is planned. A trenching and drilling campaign to test high-potential anomalies and structures will follow. Environmental permits for trenching and drilling have been obtained.
Agreement and Terms
Millrock has an option to purchase the mineral concessions and surface rights. In turn, Millrock has made and option to joint venture agreement with Centerra Gold whereby the latter can earn an 80% interest by expending US$2 million. This project grew out of a Strategic Alliance that Millrock has with Centerra Gold.
“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.”