The newly renamed Resolution Minerals (ASX: RML) has completed due diligence and is now full steam ahead with advancing the 64North gold project in Alaska, which is adjacent to Northern Star Resources’ (ASX: NST) Pogo gold mine.
Formerly known as Northern Cobalt, Resolution has officially executed its option to enter the joint venture agreement with TSXV-listed Millrock Resources.
Under the agreement, Resolution has provided Millrock with the first US$500,000 payment to begin exploration at 64North (previously Goodpaster).
All up, Resolution can secure an 80% stake in the project, with the first 60% to be earned by spending US$5 million per year on advancing 64North for four years. An additional US$50,000 payment to Millrock is required annually as well as a total of 38 million milestone shares payable in tranches.
To lock-in the 80% interest, Resolution must solely be responsible for obtaining the funding and carrying Millbrook to first production.
Resolution’s managing director Duncan Chessell said it was an “incredible opportunity” to be drilling a “stone’s throw” from Northern Star’s Pogo gold mine lease.
He added the circumstances had been presented to Resolution a rare opportunity to acquire the asset.
64North gold project
Over the last six weeks, Resolution has made payments totalling US$500,000 to Millbrook to advance exploration at 64North.
Exploration activity to-date has involved merging and pre-processing historical data sets, tenement rentals and obtaining drilling permits.
Additionally, Resolution has completed an ELF-EM survey on the project’s Aurora targets, which confirmed the CSAMT survey and valid drill targets.
Recovery of diamond core from the ER and E1 prospects, which was previously poorly sampled, has been relogged and submitted for reanalysis, with results due in the next quarter.
Other work at 64North has included construction of a road to the Aurora targets which will facilitate all-year vehicle access for drilling.
A water well has also been drilled at the targets in readiness for the upcoming diamond drilling program which is scheduled to begin in early March next year.
Final planning for the drilling program is also underway.
Proximity to Pogo and Goodpaster
64North surrounds Northern Star’s Pogo gold mine which produced 4 million ounces of gold with an average grade of 13.6 grams per tonne.
The Pogo operation has current reserves and resources exceeding 6Moz and generates about 300,000oz gold annually.
Earlier this year, Northern Star’s brownfields exploration at its Pogo tenements led to the discovery of the Goodpaster deposit where 2.3km of strike has been firmed up and mineralisation remaining open in all directions.
According to Resolution, its 64North tenements are along strike and immediately adjacent to Goodpaster.