Resolution Minerals on track to reach first year earn-in conditions as 64North drilling nears end
Drilling at Resolution’s Alaskan gold project is expected to wrap up by mid-December.
Resolution Minerals (ASX: RML) has provided an update on drilling operations at the Aurora gold prospect within its 64North project in Alaska.
The drilling program, which is being undertaken by Resolution’s Canadian partner Millrock Resources (TSX-V: MRO), began at the start of this month.
It comprises two follow-up diamond core holes totalling 1,100m at the central zone of Aurora, which lies adjacent to the world-class 11 million-ounce Pogo gold mine, owned by Northern Star Resources (ASX: NST).
The drilling campaign is targeting extensions of a shallow-dipping “Pogo-style” 7m thick quartz vein intersected by an earlier drill hole.
In today’s market update, Resolution said the first of the two holes is nearing its target depth of 500-550m with first assays expected in the “coming weeks”.
The drilling of both holes is scheduled to cease by mid-December, Millrock said in its own announcement.
The near completion of this final phase of drilling means Resolution is on track to meet its first year earn-in requirements on the 64North project and will therefore secure a 30% stake.
The first-year conditions included a requirement to spend US$5 million (A$6.84 million) in exploration expenditure, of which US$1 million (A$1.37 million) must be focused on regional targets.
Resolution added that regional field work programs have concluded for the summer with assay results from samples expected to be announced over the coming months.
Aurora prospect
The Aurora prospect, located at the West Pogo block within the greater 64North project, is considered a lookalike geophysical signature to Northern Star’s Goodpaster prospect, which is undergoing a $21 million resource drill out.
In September, Resolution announced a hole in an earlier diamond drilling campaign had intersected a “Pogo-style” 7m thick, flat-lying quartz vein, comparing it to the nearby Pogo mine which produces 4Moz at 13.6 grams per tonne gold for 300,000oz gold per year.
Resolution’s farm-in deal
Resolution entered into a deal with Millrock in late 2019 to earn up to a 60% stake in the 64North gold project in Alaska’s Tintina gold province.
The terms of the deal required Resolution to pay US$200,000 cash, issue 38 million company shares to Millrock and fund US$20 million (A$27.35 million) in exploration.
Resolution said it is now on track to earn its initial 30% interest, with further equity to be earned after meeting the spending requirement over the following three years.