Millrock Resources Inc. has presented a progress update regarding its Goodpaster Gold Project in Alaska, with specific focus on the West Pogo Block.
Substantial progress has been made since Millrock and N27 declared on October 17th, 2019, that they had executed a Binding Term Sheet regarding the Goodpaster Gold District exploration project.
Upon fruitful conclusion of the due diligence period, and signing of a definitive agreement, N27 will start earning an interest in the project via exploration funding, and by making N27 share issuances and cash payments.
Millrock and N27 are planning for a US$5.0 million exploration program in 2020, which will include a comprehensive test of drill targets determined on the West Pogo Block.
Work started as soon as a US$250,000 exploration advance was received from N27. Permits to build drill exploratory holes and drill roads were received during that week.
In addition, an upgrade to Millrock’s current State of Alaska permit was received to use the Pogo Gold Mine road.
The road, which begins from the paved highway near the town of Delta Junction, is a state-owned industrial road managed by Pogo Mine operator, Northern Star Resources. Millrock will sign a Shared Use Agreement with Northern Star. This agreement will help guarantee safe road use through communication and preset travel procedures, as well as enable pro-rata sharing of road maintenance costs.
A work campsite has been set up at Mile 39 of the Pogo Mine road. This will act as a base for the work to be carried out on the Goodpaster project in the following months. A lay-down area has been cleared at Mile 45.5, which is situated at the intersection point of CSAMT Line 3 and the mine road south of the Aurora target areas. This will be used as a place to stock equipment and supplies for the scheduled first quarter 2020 drilling program.
A drill road, leading about 6.5 km north to the Aurora Creek target areas from the Pogo Mine Road, is being laid from the Mile 45.5 lay-down. Once the road is ready, a bore well for water will be drilled in the Aurora Creek valley. The well will be a local water source for drilling during the wintertime. A water well contractor has been signed up.
Millrock and N27 examined the drill cores drilled by previous operators at the ER prospect (10 km west of the Pogo Gold Mine) and Eagle prospect (30 km southwest of the Pogo Gold Mine). It seems that earlier workers did not geochemically sample a considerable amount of core left at the prospect’s locations.
Several sections of the unsampled core have been modified by mineralizing fluids, and host quartz veins bearing bismuthinite and arsenopyrite (gold pathfinder elements bismuth and arsenic minerals, respectively). The core is being recovered and shifted to the city of Fairbanks for re-logging and geochemical sampling.
Upon successful completion of the drill road and water well by Millrock’s team, the companies will be in a position to execute a $5.0 million drilling program beginning as early as the first quarter of 2020. The compelling drill targets offer shareholders of Millrock and N27 the potential for share price appreciation.
Gregory A. Beischer, President and CEO, Millrock
Gregory A. Beischer continued, “New drill intercepts announced recently by Northern Star indicate a gold deposit (named the Goodpaster deposit), with high-grade intersections, just east of Millrock’s West Pogo Block, which is a subset of the overall Goodpaster project. Northern Star’s Goodpaster deposit may trend onto Millrock’s West Pogo block both in the strike directions and down dip.”