Millrock cuts deal for Treasure Creek gold
Fairbanks district project adds to Tintina Gold Belt portfolio North of 60 Mining News – July 31, 2020
Last updated 7/30/2020 at 10:50am
Millrock Resources Inc. July 29 reported it has secured exclusive rights to the Treasure Creek and Ester Dome gold exploration projects in the Fairbanks Mining District, adding to the company's portfolio in the Tintina Gold Belt.
Treasure Creek is a roughly 34,600-acre land package about 20 miles west of Kinross Gold Corp.'s Fort Knox Mine, which has produced more than 8 million ounces of gold. According to Alaska Division of Geological and Geophysical Survey reports more than 148,000 oz of placer gold has been mined from the streams draining the Treasure Creek claim block.
Under an exclusive rights agreement with Treasure Creek Partnership, Millrock may enter into an option to purchase at any time up to Sept. 30, 2021. To keep this agreement in good standing, Millrock must perform adequate assessment work and pay the 2020 rental fees on the claims. Millrock will also issue 500,000 shares to Treasure Creek Partnership.
Millrock has held a similar exclusive rights agreement on the Ester Dome property since 2016. Under that agreement, Millrock has kept the Ester Dome claims in good standing in return for the exclusive right to enter an option to purchase agreement with predetermined business terms. This right is valid until October of 2021.
Two major placer gold producing streams, Sheep Creek and Ester Creek, are in valleys draining the Ester Dome property, which is situated west of Fairbanks and about 25 miles southwest of the Fort Knox Mine. The former producing Grant Mine and Ryan Lode hardrock gold operations are located on adjacent properties held by other parties.
"There is known gold mineralization on both claim blocks and the geology is similar to that present at the nearby Fort Knox gold mine operated by Kinross," said Millrock Resources President and CEO Greg Beischer. "The abundance of placer gold mined at surface underscores the potential we see to discover a large intrusion-related gold deposit of similar scale to Fort Knox. High-grade vein deposits are also a possibility. A recent drill intersection by Freegold Ventures Limited at the nearby Golden Summit project has reinvigorated interest in this great gold mining camp. We will advance the two new projects with some surface exploration in the near term and look to bring in a partner as drill targets are firmed up."