17:15 EST on 02-21-2017   $0.12   -0.04   20 min delay
Rackla Metals Inc.
60 Mile

Sixty Mile

Project Highlights
  • In the heart of the Sixtymile placer district, with over 500,000 ounce historical production
  • Shallow high grade gold intersections proximal to newly discovered buried porphyry in pull-apart basin.
  • Drilling highlights of 1.5 m at 132.9 g/t Au, 1.0 m at 19.0 g/t Au, 1.0 m at 5.17 g/t Au, 1.47 m at 4.46 g/t Au.
  • Historical drilling intersection of 10.5 m at 8.76 g/t Au.
  • Gold & silver mineralization hosted in sulphide veins and veinlets
  • Widely spaced drill holes within 5 km x 1.5 km zone of alteration in andesite.
  • Road access and in an active placer mining camp
  • Recent CSAMT geophysical survey results

The Sixty Mile Property consists of 508 claims, which are owned 100% by the Company. At the present time no further work is currently planned for this property and the claims are in good standing until 2018 or later. The property is a large land position covering portions of the headwaters and drainage areas of the prolific Sixty Mile Placer Gold District in the Yukon Territory.

The property is located approximately 75 km due west of Dawson, adjacent to the Yukon-Alaska border. Access to the claims is by the posted 15-km long Sixty Mile road, from the Top of the World Highway.

The Graben Fault Zone

In 2010 Radius Gold Inc. recognized the epithermal precious metal potential in the Sixty Mile River valley. During diamond drilling in 2011 porphyry copper - molybdenum style mineralization was intersected. This combined target, now named the Graben Fault Zone, is structurally controlled by the north easterly trending Sixtymile - Pika fault bounding fault. This major sinistral transtensional fault of latest Cretaceous age is thought to extend for approximately 130 km. The valley and some adjacent hilltops are comprised of latest Cretaceous age (approximately 67 - 70 Ma) Carmacks andesitic volcanics with the volcanics in the valley being preserved in a down dropped half graben. The Carmacks volcanics are part of a widespread magmatic event that in the Sixtymile district, along with alteration and mineralization over an approximate eight kilometer strike length, is controlled by extension in the Sixtymile - Pika fault corridor.

The Carmacks volcanics underlying the Graben Fault Zone are strongly altered over an 8km long strike length, and largely buried beneath placer gold-bearing river gravels, presenting a significant challenge for drill targeting. Results from the grid auger drilling returned scattered anomalous values for gold and pathfinder elements along with a coherent copper in rock anomaly (207 ppm - 1625 ppm Cu) over four lines spaced 400 m apart. Clays in the bedrock sample were then identified by short wave infrared spectroscopy, and a Controlled Source Audio Frequency Magneto-telluric (CSAMT) geophysical survey was also used to identify resistivity highs and lows for drill targeting.

Previous workers, primarily placer miners, from the 1920's onward recognized the mineral potential of the altered, pyritized, Carmacks volcanics. In 1988 Klondike Gold Mining Corporation optioned the Per occurrence, located in the Sixtymile River valley (part of the Graben Fault Zone), from prospector Erwin Kreft and drilled 7 holes (765 m) and intersected 8.76 gpt Au over 10.5 m in DDH D4/88-02. In spite of this success no additional drilling took place and little exploration work of any type was carried out until 2010 when Radius commenced work.

In 2010, Radius drilled two holes at the Toni occurrence (part of the Graben Fault Zone), testing the volcanic rocks proximal to the Sixtymile fault zone where soil samples containing 1+ gpt gold in soil were collected. Both holes returned highly anomalous gold values over plus-50-metre intervals with narrower intervals of > 1 g/t Au (see Radius's news release dated Nov. 16, 2010).

In 2011 work grid auger drilling (335 holes totaling 2953 m), ground geophysical surveys and diamond drilling tested for epithermal mineralization over the Graben Fault Zone. Sixteen diamond drill holes (4047.8 m) targeted the Graben Fault Zone. The initial 2011 drill holes returned erratic anomalous gold values with some narrow >1g/t Au intervals, the drilling did not identify potential for a bulk-tonnage gold target at the Toni occurrence.

Holes DDH11-08 and 09 tested the historic Per occurrence (see Radius's news release dated June 6, 2011) which lies within a zone of illite alteration that extends towards the east where holes DDH11-10 and 14 tested fault structures. DDH11-08 intersected strongly bleached and sericite altered Carmacks Group andesite crosscut by narrow dolomite pyrite veins that contained 19.0 g/t Au from 193.5 m to 194.5 m.

Drill hole DDH11-10 intersected 132 g/t Au over 1.5m. This hole was drilled 1.4km east northeast of hole DDH11-08. The interval consisted of bleached, hematized and sericite altered quartz feldspar biotite schist cross cut by minor quartz/pyrite veins. The large scale of the alteration system, which can be traced over an 8km strike length, required that the 2011 drilling was very widely spaced in order to drill test several targets. The high grade intercepts in holes DDH11-08 and 10 are potentially related to an alteration zone that can be traced for a distance of 2 km, requiring further follow up work. DDH11-14, collared approximately 400 m east of DDH11-10, intersected a 1.0 m interval of propylitic altered andesite with limonitic zones that graded 5172 ppb gold.

Drill holes DDH11-04, 05, 07, 11, 12 and 13 tested potential silica bodies outlined by the geophysical program. Several of the holes intersected broad zones of anomalous base metal values. For example, while holes DDH11-03, 04 and 05 intersected a high level porphyritic granitoid with quartz stockwork veining containing chalcopyrite and minor molybdenite, none of these geophysical anomalies proved to have merit as gold targets. The anomalous copper values in these diamond drill holes confirmed the anomalous results obtained in by auger drilling.

Graben Fault Zone; Significant Diamond Drilling Results for Gold
Hole ID From (m) To (m) Length (m)* Au ppb
DDH10-06 12.19 86.87 74.68 199
including 49.84 56.39 6.55 1645
DDH10-07 88.39 146.67 58.28 318
including 120.4 127.26 6.86 646
DDH10-07 206.6 208.07 1.47 4458
DDH11-08 193.5 194.5 1 19 g/t
DDH11-10 249 250.5 1.5 132.9  g/t
DDH11-14 32 33 1 5172
*True widths for the above drill core intersections have yet to be determined.

Graben Fault Zone; Significant Diamond Drilling Results for Copper & Molybdenum
Hole ID From (m) To (m) Length (m)* Cu ppm Mo ppm
DDH11-03 25.50 320.00 294.50 380 21
DDH11-04 319.0 403.86 84.86 356 49
DDH11-05 8.80 262.47 271.27 542 41
*True widths for the above drill core intersections have yet to be determined.

The Company received a geophysical report with initial results and conclusions of the CSAMT (Controlled Source Audio Frequency Magnetotelluric) survey that was carried out over the Graben Zone in 2011. Survey results, in addition to indicating complex geology and multiple structural trends, show that the Sixty Mile Fault is not a single structure but rather a broad number of broad shear zones, likely with some vertical movement. The central portion of the CSAMT grid, which roughly corresponds to the approximate area of the copper - molybdenum rock anomaly partly outlined by the auger drill samples on the same grid, contains a number of unexplained conductive contacts. Additional interpretative work is required to determine how this fits with a porphyry target versus the original target of resistive (silica) gold bearing structures.

The Thrust Fault Zone

The Mineral Deposit Research Unit of the University of British Columbia concluded that the bedrock source for most of the placer gold is from orogenic type quartz veins. Anomalous gold values from trenches and diamond drill holes on the Thrust Fault Zone indicate it is one of the sources. The most significant drill hole to date, now on claims adjacent to the property, is DDH11-18; 507 ppb Au over 105.3 m including 1.57 g/t Au over 24.07 m. The regional geology, geochemical signature and structural setting points to an orogenic gold source similar to Kinross Gold Corporation's White Gold deposit (http://www.kinross.com/operations/dp-white-gold,-yukon.aspx).

Radius drilled eight diamond drill holes (2368.9 m), of which one hole (DDH11-19) is still located on Rackla's property, on the Thrust Fault Zone in 2010 and 2011 plus carried out RAB drilling, auger drilling, mechanized trenching and induced polarization - resistivity (IP) surveys over portions of the Thrust Fault Zone. This work identified orogenic gold mineralization within a package of northeast trending brittle siliciclastic metasedimentary rocks cut by thrust faults. This area is likely one of the sources for the extensive placer gold deposits that has been mined from the creeks that cut this unit. The host units are extensive with multiple beds of quartzite hosting cross cutting, gold bearing veins. Although all but one of the drill holes was drilled on what are now adjacent claims.

In April 2012, Rackla Metals received a report from Aurora Geosciences Ltd. detailing the results of the geophysics (IP and EM) carried out over the area of the Thrust Fault Zone that was drill tested by Radius in 2011. The report concluded that the best drilling results obtained to date, 1.57 gpt Au over 24.07 m (141.93 m - 166.00 m) in DDH11-18, is found at the margin of a chargeable zone which is offset from a conductive zone. It is thought that this margin represents a contact or thrust plane which acted as a fluid contact. The report recommended that this contact be tested with additional drill holes along strike to the southeast. Additional geophysics and drilling is recommended to test this kilometer scale target model.

Geology and History

The Sixty Mile property, which was never glaciated, covers 6 creeks or rivers with active placer gold mining. Placer gold was first discovered in the Sixty Mile district in 1892 when C. Miller staked claims on what was to become known as Miller Creek. Historical placer gold production from the Sixty Mile Placer Gold District is reported to exceed 500,000 oz of placer gold. Placer gold mining has continued in the district to the present day.

Most of the property is underlain by foliated Paleozoic metasedimentary rocks, minor Jurassic felsic intrusives and nonfoliated latest Cretaceous age Carmacks Group intermediate volcanics and felsic to intermediate intrusives.

Various companies and several well know Yukon prospectors explored portions of the property from the 1970's onward for bedrock sources of the placer gold. Companies included; Norada, Homestake Mining, Esso Minerals, Teck Corporation and Madrona Mining Ltd. although generally only surface work was carried out. In 1989 Layfield Resources diamond drilled seven holes (410.7 m) on what is now part of the Thrust Fault Zone (Layfield Grid).

Kennecott Canada Inc. targeted the area in their Yukon-Alaska intrusion-related bulk tonnage gold program in the late 1990s. They conducted a property-wide reconnaissance soil and stream geochemical sampling program, geological mapping, and a 640 line-km helicopter magnetic and radiometric survey followed by mechanized trenching. Kennecott noted that the mineralization is very similar in style to that found in other metasediment-hosted granite-related porphyry gold systems within the Tintina Gold Belt.

The Kennecott soil sampling defined several arsenic/gold anomalies, including a coherent 1.5 km x 2 km-diameter, gold-arsenic soil anomaly, now the Kennecott Grid on the south side of lower Miller Creek (part of the Thrust Fault Zone). Excavator trenching at the southern edge of this anomaly revealed north easterly striking sheeted mesothermal quartz veins. Rock chip samples from returned 1.6 g/t gold over a 13 meter interval in Trench 99-6. After a ten year hiatus Radius Gold Inc. resumed exploration in 2010.

Radius Gold Inc. indentified two separate targets on the property, the Thrust Fault Zone, an orogenic gold target hosted by foliated Paleozoic metasedimentary rocks and the Graben Fault Zone, a latest Cretaceous age porphyry - epithermal target hosted by Carmacks volcanics and granitoids. In 2010 and 2011 Radius Gold Inc. drilled a total of 27 diamond drill holes (6881.3 m) plus carried out auger drilling (349 holes), rotary air blast (RAB) drilling (84 holes totaling 3326.56 m), mechanized trenching (13 trenches, 1134 linear meters), geological mapping, geochemical sampling, and an airborne aeromagnetic and radiometric survey. No work was carried out on the property in 2012 or 2013 and much of the above work was carried out on optioned claims that have since been returned to their underlying owners. Both the Thrust Fault and Graben Fault Zones straddle Rackla's current property.

Sixtymile Diamond Drill Hole Coordinates, Dips and Azimuths
Hole Number North (NAD 83) East (NAD 83) Elevation (m) Azimuth (deg.) Dip (deg.) Length (m)
RDU_SM_DDH10-01 7097093 506687 1016 290 -45 214.88
RDU_SM_DDH10-02 7097073 506734 1009 290 -45 287.73
RDU_SM_DDH10-03 7097167 506779 1006 287 -45 334.37
RDU_SM_DDH10-04 7097148 506088 1106 290 -50 306.32
RDU_SM_DDH10-05 7100455 501280 1311 310 -47 298.7
RDU_SM_DDH10-06 7097850 514130 735 125 -45 140.21
RDU_SM_DDH10-07 7097785 514086 762 40 -46 240.79
RDU_SM_DDH11-01 7097927 514065 708 137 -50 263.65
RDU_SM_DDH11-02 7098003 514001 655 140 -50 364.99
RDU_SM_DDH11-03 7097425 513439 692 140 -50 320.04
RDU_SM_DDH11-04 7097735 513184 679 140 -50 403.86
RDU_SM_DDH11-05 7097433 512793 686 140 -50 271.27
RDU_SM_DDH11-06 7097032 513165 713 140 -50 192.02
RDU_SM_DDH11-07 7096753 512055 690 140 -50 92.17
RDU_SM_DDH11-08 7096251 511172 696 320 -50 249.94
RDU_SM_DDH11-09 7096282 511277 700 320 -50 207.26
RDU_SM_DDH11-10 7096730 512732 756 140 -50 351.43
RDU_SM_DDH11-11 7098253 513724 664 140 -50 254.51
RDU_SM_DDH11-12 7097733 514168 762.2 140 -50 104.85
RDU_SM_DDH11-13 7097729 514174 761 140 -50 265.41
RDU_SM_DDH11-14 7096788 513006 763 320 -50 330.71
RDU_SM_DDH11-15 7097076 506727 1009 110 -57 289.56
RDU_SM_DDH11-16 7098900 514839 663 320 -50 185.32
RDU_SM_DDH11-17 7095678 510307 701 0 -50 190.44
RDU_SM_DDH11-18 7097260 506465 1027 110 -62 314.55
RDU_SM_DDH11-19 7097803 505663 900 126 -55 312.12
RDU_SM_DDH11-20 7099234 507494 1071 116 -60 309.37