Karen

Status: Available for Option

Target

The target at Karen has many of the characteristic of an epithermal vein type gold deposit. A large portion of the claim also contains high volumes of low grade gold in stockwork quartz veins and quartzite.

Location and Setting

Karen is easily accessible via paved road, 110 km east of Hermosillo. The property is situated at the base of the prolific Sierra Madre Occidental in the east central portion of the state of Sonora.

Land Status

The property consists of one mining claim covering 347 Ha surrounded by valuable properties owned by Peñoles.

Previous Exploration

Small historic mine workings at La Campeña, Mine, which lies within the claim boundary, and El Realito Mine (outside of the claims) exploited tabular shaped fault hosted epithermal gold and silver veins. The area was previously owned by Minera Real de Oro.

Geology

Ordovician sediments intruded by Laramide volcanic rocks are cut by younger dikes and stocks including granitic to diorite phases and andesite porphyry. The oldest rocks in the region, lower Ordovician sandstones and mudstones, are occasionally encountered as roof pendants within Upper Cretaceous to Tertiary granite and granodiorite. In the east and northeast claim area mudstones and sandstones are found in fault contact with Upper Cretaceous andesitic tuffs while in the west andesitic tuffs are found to be discordantly deposited over the same rocks.

Structure and Alteration

Deep red hematite is prominent and silicic alteration is widespread in the sedimentary units. The dominate structures in the area are a result of west directed folding and thrust faulting followed by Basin and Range normal faulting.  The property is located at the Foot hills of the Sierra Madre and within the basin and range physiographic province. A large regional fault is associated with As and Au anomalies in the area.

Mineralization

Two types of mineralization have been mapped at Karen. A fault hosted epithermal vein system contains up to 34.6 PPM Au in the northern property area and low grade gold in abundant high volume quartzite cut by stockwork veins contains values up to 0.23 ppm Au in the central and southern claim area. Fault hosted mineralization includes gold bearing quartz veins and stockwork in east-west trending zones of unknown depth.

Conclusions and Recommendations

This property presents anomalous gold values in abundant quartzite.  There could be potential for a large deposit given the apparent large volume of mineralized rock and easy access. Gold is also recognized in faults hosted epithermal quartz veins and stockwork. Recommendations include follow up mapping, stream sediment sampling and rock chip sampling to define the potential of gold bearing quartzite and oxidized stockwork veins, mapping and sampling to define fault hosted structures and magnetic and IP geophysics to vector to gold targets at depth.

“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.”