MAX Resource acquires Gold Hill property in central Alaska

Vancouver, British Columbia-based MAX Resource Corp. announced on May 17 its acquisition of the Gold Hill exploration property in central Alaska, near Cantwell.

The company plans to begin an extensive exploration and drilling program in June, subject to acceptance for filing of the acquisition option and weather conditions in the area, MAX said in its press release.

MAX entered into an option agreement with Zazu Exploration Inc., a privately held Texas corporation, which holds a lease on the Gold Hill claims from General Crude Oil Minerals Co. General Crude Oil acquired the property in 1983, according to MAX's press release, and conducted some geologic and geophysical work, including drilling five core holes. The best intercept was 11.5 feet, averaging 0.668 ounces of gold per ton of rock.

Amax Gold, looking for a bulk tonnage gold occurrence in the late 1980s, conducted other previous exploration work. Amax completed 5,885 feet of reverse circulation drilling in 21 holes, hitting some high-grade intervals but no thick intervals of lower grade mineralization.

Gold Hill was originally drilled for molybdenum in the early 1970s, but some of the holes were not assayed for gold then. A large soil geochemical anomaly exists, both on Gold Hill and the neighboring West Hill on the west side of the property.

Hydrothermal alteration is pervasive throughout the property, MAX said in its press release. Area creeks contain placer gold and have been worked in the past.