The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Millrock Resources Inc. June 10 reported the purchase of Willoughby, a high-grade gold prospect in the Golden Triangle region of Northwest British Columbia.
The 995-hectare (2,460 acres) claim block is located three kilometers (two miles) east of the Red Mountain gold project being developed by IDM Mining Ltd. and eight kilometers (five miles) south of Millrock's Poly and LNT gold-copper properties.
High-grade gold and silver intercepts were reported by exploration programs on the Willoughby property in the past, including: 20.5 meters of 25 grams per metric ton gold and 184.2 g/t silver in a hole drilled in 1989; and 2.9 meters of 398 g/t gold and 199.4 g/t silver in a hole drilled in 1995.
"The prospect is in steep mountainous terrain on the eastern edge of the Cambria Icefield.
The terrain will present challenges, but also opportunities.
Glaciers have been rapidly receding over the years since the last exploration drilling work was done in 1995.
Much more may now be visible and accessible," explained Millrock President and CEO Greg Beischer.
Millrock has purchased a 100 percent interest in Willoughby from Yukon prospector John Bernard Kreft for C$40,000 and 300,000 Millrock shares.
Millrock also has agreed to pay C$40,000, or issue 200,000 Millrock shares, Kreft's option, upon completion of 2,500 meters of drilling at the project; to pay C50 cents per ounce of gold contained in an inferred resource for the property, up to C$2 million, if a preliminary economic assessment is completed; and to pay C$1 per ounce of gold contained in reserves and resources, up to C$5 million, if a decision to mine the project is made.
Mine production, if it occurs, will be subject to a 3 percent net smelter returns royalty, which may be purchased in its entirety for C$3 million at any time prior to the commencement of commercial production.
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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