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The Gold Hill Project comprises 8,520 acres located approximately 212 miles north northeast of Anchorage and is accessible to within five air miles of the property by the all-weather unpaved Denali Highway (State Highway 8). The property is then easily accessed using hunting roads and trails.
On July 30, 2007 a 5,000 foot drill program was commenced to follow up on molybdenum soil and magnetic anomalies identified on Gold Hill as well as significant molybdenum mineralization intersected by prior operators in the 1970's. The drill campaign was designed to test a broad Molybdenum/Copper/Gold geochemistry and geophysical magnetic anomaly covering a 700m by 800m area. All holes intercepted MoS2, with strong molybdenum mineralization over long intervals in four holes. All of the holes but one encountered mineralization starting at surface and ending in mineralization at depth, which continues to indicate that a molybdenum porphyry system is present at Gold Hill. Drilling highlights included:
DH-07-01 - 250 feet of 0.080% MoS2
DH-07-03 - 750 feet of 0.0734% MoS2
DH-07-05 - 352 feet of 0.0706% MoS2
A 12 hole drill program is scheduled to begin in June 2008 aimed at expanding the known area of intrusive mineralization. A secondary target that emerged from the 2007 program was mineralization identified in sediments to the east that indicate a skarn system may be present as well.
Prior Exploration - Molybdenum
The Gold Hill property was explored for base metals during the early 1970's by the New Alaska Syndicate (Cities Services Minerals and Dome Mines Ltd). At least 20 drill holes were drilled over the then 4,960 acre property. The drill holes tested numerous soil anomalies, with significant molybdenum mineralization intersected on the southwest side of Gold Hill. Hole DDH 77-2, intersected the highest values in a quartz-molybdenum +/- pyrite zone grading 0.048% MoS2 from 0 to 536 feet with a higher grade interval from 350-500 of 0.094% MoS2. This area had never been followed up with modern exploration techniques. The immediate area of the drilling contains a significant magnetic anomaly that coincides with the mineralization. Previous drilling never tested this magnetic feature nor the surrounding sedimentary rocks. This area is best described as having strong skarn and silicification development and coincident mineralization. This area was the primary target of the 2007 exploration program.
Exploration - 2007
On August 29, 2007 MAX announced assays received from the top half of drill hole DH-07-1 on the Gold Hill Molybdenum Property in Alaska. Assays for the top 540 feet returned 0.054% MoS2 and included a 250 foot intercept of 0.08% MoS2. This hole was drilled to a depth of 965 feet, with the results form the remainder of the hole available in early October and returning 0.041% MoS2 over a core length of 425 feet. Together with the previously reported intersection, Hole DH-07-01 assayed a total of 0.048% MoS2 over the entire core length of 965 feet. The best interval occurs as 250 feet of 0.080% MoS2 beginning at 260 feet down hole. Further, Hole DH-07-01 ended in molybdenum mineralization grading 0.054% MoS2.
Anomalous and dispersed values in copper were also reported. Copper mineralization occurs in core as chalcopyrite. These intervals are located at various areas throughout the drill hole, as indicated in the following table:
| Drill Hole | Interval (feet) | Width (feet) | Mineralization |
| Molybdenum Results | |||
| DH 07-1 | 0-965 feet | 965 feet | 0.048% MoS2 (0.029% Mo) |
| 540-965 | 425 feet | 0.041% MoS2 (0.025% Mo) | |
| Including | 0-540 | 540 feet | 0.054% MoS2 (0.033% Mo) |
| 260-510 | 250 feet | 0.080% MoS2 (0.048% Mo) | |
| 855-915 | 60 feet | 0.058% MoS2 (0.035% Mo) | |
| Copper Results | |||
| 0-250 feet | 250 feet | 0.0266 % Cu | |
| Including | 130-200 | 70 feet | 0.043% Cu |
| 755-815 | 60 feet | 0.026% Cu | |
| 845-965 | 120 feet | 0.028% Cu |
Assays from a further two drill holes were announced in October, 2007. Drill hole DH-07-03 returned 0.058% MoS2 over a core length of 1,000 feet, which included a higher grade intercept of 0.18% MoS2 (0.107% Mo) over 45 feet.
The results for DH 07-03 are as follows:
| Drill Hole | Depth (feet) | Interval (feet) | Mineralization |
| Molybdenum Results | |||
| DH 07-03 | 0-1000 | 1000 feet | 0.058% MoS2 (0.035% Mo) |
| Including | 0-750 | 750 feet | 0.0734% MoS2 (0.044% Mo) |
| Including | 135-180 | 45 feet | 0.18% MoS2 (0.107% Mo) |
| Including | 445-485 | 40 feet | 0.135% MoS2 (0.081% Mo) |
| Copper Results | |||
| 0-320 | 320 feet | 0.0226 % Cu | |
| 500-1000 | 500 feet | 0.045% Cu |
Drill Hole DH-07-02 also had moderately lower molybdenum values over the entire length of the drill hole but slightly better copper values, which is indicative of a typical zoning pattern usually found in a porphyry system. The results for DH 07-02 are as follows:
| Drill Hole | Depth (feet) | Interval (feet) | Mineralization |
| Molybdenum Results | |||
| DH 07-02 | 0-1000 | 1000 feet | 0.030% MoS2 (0.0167%Mo) |
| Copper Results | 0-430 | 430 feet | 0.054% Cu |
| 430-605 | 175 feet | 0.0215% Cu | |
The assays from the final two diamond drill holes at Gold Hill were received in November 2007. Drill hole DH-07-05 returned 0.0466% MoS2 over a core length of 822 feet, which included a higher grade intercept of 352 feet of .0706% MoS2. Copper results are still pending.
Drill hole DH-07-05 was an angled drill hole designed to test across the mineralization that was intersected in drill holes DH-07-02 and DH-07-03. The drill hole did not cut the entire interval and mineralization was visibly increasing at the bottom of the drill hole as it neared the projection of the main zone. This hole will be continued during drilling next season.
Drill Hole DH-07-04 was a vertical hole. This hole reports good molybdenum values over the entire core length of 1000 feet, which included a 250 foot interval of 0.0603% MoS2. This hole also reported better copper values. Again, this is a typical zoning pattern usually found in many porphyry style systems.
| Drill Hole | Depth (feet) | Interval (feet) | Mineralization |
| Molybdenum Results | |||
| DH-07-05 | 15-837 | 822 feet | 0.0466% MoS2 (0.0279% Mo) |
| 15-465 | 450 feet | 0.0284% MoS2 (0.0170% Mo) | |
| 485-837 | 352 feet | 0.0706% MoS2 (0.0423% Mo) | |
| Includes | 560-630 | 70 feet | 0.0855% MoS2 (0.0512% Mo) |
| 780-837 | 57 feet | 0.0912% MoS2 (0.0546% Mo) | |
| DH 07-04 | 0-1000 | 1000 feet | 0.0408% MoS2 (0.0244% Mo) |
| Including | 450-700 | 250 feet | 0.0603% MoS2 (0.0362% Mo) |
| Including | 900-1000 | 100 feet | 0.0533% MoS2 (0.0334% Mo) |
| Copper Results | |||
| 0-1000 | 1000 feet | 0.0416 % Cu | |
| Including | 0-200 | 200 feet | 0.0809% Cu |
A National Instrument 43-101 Geological Report was completed on the Gold Hill project in July 2004 that has been filed on SEDAR and can be viewed on SEDAR or by clicking this link. The historic information provided above is for reference only and the reader should not infer or assert that the information is correct, reliable, relevant or accurate and should not be relied upon. There are no resources and reserve estimates relating to the Claims. The original data provided by Dome and Cities Service is historical in nature, has not been verified by the issuer's qualified person, may not be relevant and should not be relied upon. Additional drilling on the Gold Hill property will be required in order to provide updated geological data compliant with NI 43-101.
QA / QC (Quality Control and Quality Assurance): Core material was collected at the drill site and placed in core boxes under the supervision of an experienced geologist. It was logged for rock type, alteration, structure, and recorded with detailed descriptions. Core was split using a hydraulic core splitter and one-half was sent to the Alaska Assay Laboratories. The other half is kept at MAX's core storage facility in Anchorage. Drill holes were sampled at five foot sample intervals. Samples were delivered in sealed bags to the Alaska Assay Labs facility in Fairbanks, Alaska for sample preparation. Alaska Labs is using a 2 acid digestion and a 30 Element AES ICP Scan.
Sample Preparation quality control at Alaska Assay Labs includes strict chain of custody documentation, careful logging of samples documentation, careful cleaning of all equipment documentation, and careful monitoring of crush and grind particle size documentation, and careful protocol documentation following ISO9002/17025 guidelines.
Qualified Person: Max's exploration program was supervised by Clancy J. Wendt, P.Geo., who is a qualified person as defined in National Instrument 43-101 for this disclosure.
Geology and Prior Exploration - Gold:
The Gold Hill property also encompasses an intrusion related gold system which has many of the characteristics of a Tintina Gold Belt system. The dominate rock types consist of argillite, metasiltstone, greywacke, carbonaceous schist and a small wedge-shaped fault block of tuffaceous metasedimentay and metavolcaniclastic rocks. Early to mid-Tertiary monzonite and diorite stocks, plugs and dikes intrude the metasiltstone units on Gold Hill and the tuffaceous metasedimentary sequences on West Hill located in the western part of the property.
Hydrothermal alteration is pervasive throughout the property. Quartz-sericite-pyrite alteration is particularly evident around the summit of Gold Hill and to a lesser extent in the vicinity of the Swale area, a low saddle located just east of West Hill.
The gold mineralization is thought to be related to the intrusions and pyrite, arsenopyrite, pyrrhotite, chalcopyrite, molybdenum, and gold are found in veins and as disseminations in the host rocks. The mineralization occurs as disseminations and on fractures and appears to be structurally-controlled. The alteration and mineralization occur over an area of at least two square miles. All of the creeks contain placer gold and have been worked in the past. Interpretation of the geophysics indicates that there are a number of buried intrusives present on the property which have not been explored.
Exploration for Gold - 2004
MAX completed an initial drill program on the Gold Hill project in July, 2004 to test previous high grade gold mineralization encountered by Amax Gold in the 1980's. Drill included included DH-7 containing 1.5 meters of 6.35 gpt Au; DH-16 containing 6.1 meters of 5.46 gpt and 3.0 meters of 13.31 gpt Au; and DH-17 containing 3.5 meters of 23.37 gpt Au. Prior to this, GCO drilled 5 holes looking for gold, with Drill Hole 85-5 intersecting 3.5 meters of 23.37 gpt gold (uncut) (see below):
Example of mineralized drill core from Drill Hole 85-5
Highlights of the 2004 drill program for gold included:
HQ Core Drill Hole # |
From |
To |
(feet) |
Au |
04-1 |
29 |
35 |
6 |
1.87 |
125 |
130 |
5 |
5.24 |
|
04-6 |
90 |
95 |
5 |
1.09 |
|
130 |
145 |
15 |
2.88 |
Including: |
130 |
135 |
5 |
5.28 |
In addition, MAX staked a 1,659 hectare area west of the Gold Hill property. This encompasses areas of high grade outcrops that were explored during the drill program. The new zones identified include a major structure with approximately one meter of mineralization grading 14.4 gpt gold and 0.18% copper, and a sheeted zone where values of 7.9 gpt gold and 1.1% copper were found in the fractures.
Petrographic work indicates that the drill core is almost all diorite to intermediate composition intrusive rocks. Polished section work showed that gold is found in a free state and is related to the intrusions. Pyrite, arsenopyrite, pyrrhotite, chalcopyrite, molybdenum, native copper, and gold are found in veins and as disseminations in the host rocks. Significant values of gold (2.5 feet of 0.25 ounces per ton) have been found in a sample from the Gold Creek Area. This sample also contained 0.57% copper. Within the same creek, values of tungsten (0.19% WO3) were also found.
Sample from Gold Creek area
