The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
North of 60 Mining News – October 1, 2019
The Glenn Highway cuts across a copper-rich area of Interior Alaska about 60 miles south of Tok. Dragonslayer is likely found in similar terrain.
Millrock Resources Inc. Sept. 23 announced that First Quantum Minerals Ltd. has been granted the exclusive right to enter an option agreement on Dragonslayer, a porphyry copper-gold project Millrock has identified in eastern Alaska.
To earn the option right, First Quantum is funding C$100,000 of initial exploration that includes geochemical surveys, mapping, and prospecting.
This work is focused on a geophysical anomaly located in a belt of Cretaceous-aged rocks southeast of Paxon, Alaska that have demonstrated potential for copper porphyry deposits.
The geophysical anomaly consists of a conductive zone surrounding a magnetic high in a low-lying area with little outcrop exposure. This target was detected using an airborne ZTEM (Z-axis tipper electromagnetic) and magnetic susceptibility survey.
Upon receipt of the current exploration survey results, expected in October, First Quantum will have until Dec. 31 to exercise its exclusive right to enter into an option to joint venture with Millrock Resources on Dragonslayer.
If First Quantum decides to enter into the option agreement, the Canada-based copper mining company can earn 51 percent interest in Dragonslayer by spending C$6 million on exploration and making cash payments of C$700,000 to Millrock over four years.
First Quantum can increase its interest to 70 percent by defining an inferred resource of at least 1 million metric tons of contained copper equivalent on the property. It can further increase its interest to 80 percent by funding the project through permitting and construction until commercial production is achieved. Any of Millrock's proportionate share funded by First Quantum would be repaid by production proceeds.
–SHANE LASLEY
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