Quarterly Activities and Cashflow Report 31 December 2019
The Company has executed a binding term sheet with Millrock Resources Inc (TSXV: MRO or Millrock) to earn up to an 80% interest in the brownfields 64 North Project in Alaska.
The 64 North Project surrounds Northern Star’s (ASX: NST) Pogo Mine, which has produced 4 Moz gold @ 13.6g/t with an annual average of 300koz and a reserve/resource of over 6 Moz gold (ASX: NST Announcement 19/9/2019).
Resolution Minerals successfully completed due diligence and provisioned drill access road works during an exclusive option. Execution of Option to Joint Venture Agreement completed late in the quarter.
A 7,500m initial drilling program is scheduled begin in Q1, 2020 on high priority drill targets immediately adjacent to the recent NST announced Goodpaster Discovery “2.3km strike open in all directions” (ASX: NST Announcement 16/9/2019) within 450m of the claim boundary.
Resolution Minerals Ltd (ASX: RML or Company) entered into a binding term sheet (Term Sheet) with Millrock Resources Inc (Millrock or MRO) during the quarter to acquire, via joint venture earn-in, up to 80% in the 64 North Project in Alaska. The 64 North Project is adjacent to Northern Star’s Pogo Mine which has a total endowment of 10 million ounces of goldand is currently producing at a rate of ~300,000 ounces per annum. Northern Star has announced a planned 30% production expansion by spending a further US$30m (A$43m) capital expenditure, in parallel with utilising better mining methods which will allow NST to lower the cut-off grade and reduce operating costs, see ASX: NST Announcement 19/9/2019.
A new Millrock geophysical survey (see TSX.V: MRO Announcement released on the 9/10/19) has detected a highconductivity response directly along strike from a recent gold discovery on NST’s adjacent claims. The conductorappears to be gently dipping and is therefore consistent with a low-angle regional shear zone that is known to host the adjacent Pogo Gold Mine (total gold endowment of approximately 10 Moz Au). This will be the immediate focus for Resolution Minerals, with drilling proposed to begin in the Q1, 2020.