EMX’s Goodpaster royalty is located in the Goodpaster District of eastern Alaska 160 km southwest of Fairbanks. In April 2018 EMX has entered into an agreement with Millrock Recources Inc. (“Millrock”) (TSX Venture: MRO, OTCQX: MLRKF) through a private placement financing (the “Private Placement”). In return, Millrock has granted certain royalty interests to EMX on some of Millrock’s properties in the Goodpaster Mining District, Alaska. EMX and Millrock have agreed that the Private Placement funds are to be used to support Millrock’s programs in the Goodpaster District, which hosts the Pogo1 high grade underground gold mine. The Pogo Mine, now operated by Northern Star Resources Limited (“Northern Star”), has produced 3.8 million ounces of gold since startup in 20062 (see Company news release dated April 24, 2019). Millrock’s geologic expertise in the district and a substantial proprietary database of historic drilling, geochemistry, and geophysics that has been key in identifying priority targets for staking claims along the Pogo and Shaw-Eagle-LMS Trends. Gold mineralization defined in the Goodpaster Project area is hosted in quartz sulfide veins with associated silicate and carbonate alteration of the host rock.
The West Pogo project is along trend of, and has similar geological and geochemical attributes to, the nearby Pogo Mine. Previous work identified elevated gold, arsenic and bismuth surface soil and rock sample anomalies, as well as gold prospects (e.g., Half-Ounce Gulch and Alkalic Trench) covered by EMX royalties or royalty purchase options.
A new discovery (the Goodpaster prospect) reported by the prior owners of the Pogo Mine may trend onto Millrock’s West Pogo project. Approved permit applications filed by Northern Star indicate its plans to drill near the shared Pogo Mine/West Pogo claim boundary.
At the East Pogo project, new claims staked around several known prospects are subject to 0.5% to 1% EMX NSR royalty interests. These prospect areas contain elevated gold, arsenic and bismuth surface sample anomaly clusters related to northeast and northwest-oriented high angle faults.
Shaw-Eagle-LMS Trend. New claims staked along the Shaw–Eagle–LMS trend are subject to 0.5% to 1% EMX NSR royalty interests. The claims cover gold, arsenic and bismuth geochemical anomalies.
EMX’s also acquired additional royalty interests in the Goodpaster District through an agreement with Corvus (see Company news release dated May 21, 2019). This acquisition of the Corvus royalty property interests complemented the Company’s recent acquisition of royalty property interests from Millrock.
1 The Pogo mine provides context for EMX’s royalty properties, which occur in a similar geologic setting. However, this is not necessarily indicative that these properties host similar tonnages and grades of mineralization.
2 Through mid-2018. See Northern Star ASX Announcement dated February 12, 2019.