Millrock Resources (CVE:MRO) said Monday that Teck American, a subsidiary of Teck Resources (TSE:TCK.B), has met the requirements to earn a 55 percent interest in the Estelle gold project located northwest of Anchorage, Alaska.
The joint venture partners have planned a drill program that is
slated to begin in July at the Estelle gold project, of seven holes for a
total of up to 1,500 metres.
Millrock said the target it is seeking at the Estelle project is a
gold deposit of the intrusion-related type. Estelle is located in the
Kahiltna Terrane, an assemblage of rocks that hosts Northern
Dynasty/Anglo American's giant Pebble copper-gold-molybdenum-silver
Four main zones of large-scale anomalous gold and pathfinder element
geochemistry were identified over the past three years: Shoeshine, Oxide
Ridge, RPM and Stoney.
Five of the planned holes this year will be drilled at the Oxide
Ridge occurrence where Millrock found a thick, low grade gold
intersection during last year’s drill program.
At this location, Millrock previously discovered a multi-element soil
geochemical anomaly in a roughly circular area measuring two kilometres
Millrock said mineralization was found from depths of 31.79 metres to
397.06 metres and returned an average of 0.43 grams per tonne gold over
Two more holes will be used to test geochemical anomalies in pyritic
rocks on the margin of an intrusion at the RPM zone, located at the
south end of the claim block, the company said.
A number of the claims that make up the property have a three percent royalty payable to third parties, the company said.
Millrock’s share of the 2012 exploration program is estimated to cost
US$800,000. The company said it will borrow the entire amount from Teck
to cover the costs.
The loan, which has a six percent interest rate, must be repaid by
December 31. If the junior miner does not repay the loan, its 45 percent
stake will be reduced to about 35 percent.
Last Friday, Millrock Resources said a hole being drilled on the Galiuro property in Arizona was abandoned prior to reaching targeted depth, after Vale Exploration kyboshed an option agreement.
Vale Exploration, which was funding the work, decided to terminate its option agreement it signed on March 2, 2009.
The Galiuro project is made up of 366 federal mining claims and 18
Arizona State prospective permits covering about 6,800-hectares, and is
located near the San Manuel and copper district in southeastern Arizona.
Millrock currently has 12 active exploration projects, eight
gold-copper properties in Alaska, and four porphyry copper prospects in