Quarterly Activities and Cashflow Report (Sept 30 2019)
The Company has executed a binding term sheet with Millrock Resources Inc (TSXV: MRO) to earn up to an 80% interest in the brownfields Goodpaster Project in Alaska
The Goodpaster Project surrounds Northern Star’s (ASX: NST) Pogo Mine, which has produced 4 Moz @13.6g/t at 300koz pa; reserve/resource of over 6 Moz Au (ASX: NST Announcement 19/9/2019)
Northern Cobalt has secured an exclusive option for up to 100 days to complete due diligence and provision drill access road works in preparation for the 2020 drilling program
Drilling to begin in Q1, 2020 on high priority drill targets immediately adjacent to the recent NST announcedGoodpaster Discovery “2.3km strike open in all directions” (ASX: NST Announcement 16/9/2019) within 450m of the claim boundary
Management changes implemented to take Goodpaster project forward with Millrock
Northern Cobalt entered into a binding term sheet with Millrock Resources Inc following the end of the quarter to acquire, via joint venture earn-in, up to 80% in the GoodpasterProject in Alaska. The Goodpaster Project is adjacent to Northern Star’s Pogo Mine which has a total endowment of 10million ounces of gold and 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 AISC, see ASX: NST Announcement 19/9/2019.
A new Millrock Resources geophysical survey has detected a high conductivity response directly along strike from a recent gold discovery on NST’s adjacent claims. The conductor appears 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. This will be the immediate focus for Northern Cobalt, with drilling proposed to begin in the Q1, 2020.
The Initial exploration program for year 1, will aim to deploy 7,500m of diamond core drilling and utilise Lidar, field mapping, geochemical sampling and CSAMT geophysics surveys to unlock the structural controls and focus in on gold mineralisation on the West Pogo Prospect; as well as conduct regional work to identify further drill targets in this district scale system, with $1m allocated to regional targets per year for years 1 and 2.
Watch as MD Duncan Chessell discusses the new Goodpaster Gold Project with Small Caps.