North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Millrock Resources Inc. March 1 announced that it is shifting its focus to exploration of Nikolai, an Alaska project prospective for a large deposit of critical energy metals such as nickel, copper, cobalt, and platinum group elements.

As part of this shift in focus, the company plans to change its name to Alaska Energy Metals Corp. and complete a 10-to-one share consolidation.

"Despite strong execution of the project generator model over the past few years, Millrock's share price has declined," said Millrock Resources President and CEO Gregory Beischer. "Bold changes are necessary, and the Nikolai project presents a timely opportunity."

Discovered by INCO in the 1990s and explored by Pure Nickel Inc. from 2007 through 2014, the Nikolai project hosts a roughly 10-mile- (15 kilometers) long trend of nickel-copper-cobalt-chromium-PGE mineralization.

Highlights from drilling completed by Pure Nickel in the Eureka Zone of what was then referred to as the Man project include:

• 224.6 meters averaging 0.23% nickel, 0.06% copper, 0.017% cobalt, 39 parts per billion platinum, and 81 ppb palladium.

• 319.7 meters averaging 0.25% nickel, 0.09% copper, 0.018% cobalt, 54 ppb platinum, and 117 ppb palladium.

• 205.2 meters averaging 0.24% nickel, 0.09% copper, 0.017% cobalt, 61 ppb platinum, and 122 ppb palladium.

Early last year, Millrock announced that it had staked 104 state mining claims covering Eureka Zone and entered into an option agreement for Canwell, a block of 42 state mining claims about 11 miles (18 kilometers) to the northeast, where historical surface rock sampling and drilling has identified higher-grade nickel, copper, and PGEs.

"Historical drilling at Nikolai indicates potential for a very large, low-grade, polymetallic deposit dominated by nickel sulfide mineralization," said Beischer. "The demand for nickel and cobalt for electric vehicle battery manufacture has been growing rapidly and is projected to increase significantly."

Exploring Nikolai

To explore Nikolai's potential, Alaska Energy Metals envisions carrying out a 4,200-meter drill program this summer that will focus on establishing an initial NI 43-101-compliant inferred resource estimate for Eureka Zone, the primary area historically explored on the land package.

Historical drilling indicates the presence of a thick zone of nickel enriched mineralization at Eureka that extends for roughly 10 miles (15 kilometers).

A roughly 3,400-meter subsection of this zone shows more substantial metal concentrations in historical drill holes. Drilled intervals range between 95 meters and 320 meters, with nickel-equivalent grades ranging between 0.29% and 0.47%.

In addition to Eureka, the road-accessible Canwell block has shown the potential for higher grade deposits. Exceptionally high-grades of nickel, copper, gold, platinum, palladium, along with the rarer platinum-related metals osmium, iridium, ruthenium, and rhodium have historically been reported from outcrop grab, float, and chip samples.

In 2023, Alaska Energy Metals intends to carry out an extensive rock and soil sampling program and a modern, detailed airborne electromagnetic survey on the Canwell Block in preparation for a 2024 drilling program.

Given that Nikolai is located near the paved Richardson Highway about a 2.5-hour drive south of the city of Fairbanks, Alaska Energy Metals believes the project could be an important source of the nickel, copper, and cobalt needed for electric vehicles and renewable energy.

"The demand for nickel and cobalt for electric vehicle battery manufacture has been growing rapidly and is projected to increase significantly. It will be necessary for the mining industry to mine bulk tonnage nickel – cobalt deposits to meet the demand," said Beischer. "Alaska Energy Metals is positioning itself to supply domestic markets with a source of critical and strategic metals. Located in the USA, we intend to help North America transition to electrical power for vehicles and other rechargeable battery powered products."

Corporate shift

As part of the restructuring of Millrock, the company has made shifts in the management team for the new Alaska Energy Metals.

Phil St. George has stepped down as Chief Exploration Officer of Millrock but will continue as a technical advisor to Alaska Energy Metals.

Beischer, who first came to Alaska in 1995 as an employee of INCO during that company's exploration of Nikolai, will continue as the top executive of Alaska Energy Metals.

Alaska Energy Metals Corp.

Click on image for larger Eureka Zone map.

Other long-standing Millrock senior employees will assume executive positions in the new entity – Kyle Negri as vice president of exploration, Traci Hartz as vice president of administration, and Gabe Graff as chief geoscientist.

As part of its new focus, Millrock will consider selling its other assets that include a portfolio of exploration stage royalty assets in Alaska, a portfolio of shares in other junior exploration companies, a 49% interest in the 64North gold project surrounding the Pogo gold mine in Alaska, and other mineral property interests.

The name change and share consolidation is subject to TSX Venture Exchange approval. Once complete, Alaska Energy Metals will have roughly 15.5 million common shares issued and outstanding on a post-consolidated basis.

Author Bio

Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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