Bluff

Target: The known mineralization at Bluff consists of gold-bearing quartz veins hosted in a sulfide-rich quartz muscovite schist. Thrust faults form the upper and lower contacts for this schist unit which is intercalated between barren marble units. Previous work by BHP in the 1980's established potential for a gold resource and a modest drilling program by Millrock confirmed the presence of gold mineralization at Bluff in 2008. All data to date document a large and robust gold system with many untested targets, excellent potential for the confirmation of the BHP estimates, and expansion of those estimates substantially by drilling along strike, down dip, and in new target areas.

Location and Setting: The Bluff prospect is located about 80 kilometers east of Nome, 35 kilometers south of Council, and 20 kilometers west of Golovin. A seasonal State-maintained gravel road passes within 18 kilometers of the Bluff prospect. The prospect area is on the coast with landing craft-accessible beaches and an airstrip providing ready access for personnel and equipment. Nome is serviced by three scheduled jet aircraft flights a day from Anchorage, daily air freight service, and has a small port for use for barge delivery of fuel, supplies, and equipment from the Pacific Rim.

Property and Agreement: Millrock has made an exploration agreement with Bering Straits Native Corporation (BSNC) on three discrete tracts of land on the south side of the Seward Peninsula. The lands at Bluff subject to this agreement total roughly 142 square kilometers and cover the source rocks for the high grade alluvial, beach and offshore placers mined in the early 1900's. The BSNC agreement covers all three properties and is an option to form a 100% leasehold interest. These terms include:

All of the BSNC lands at Bluff are split estate. BSNC owns the subsurface while White Mountain Native Corporation owns the surface. In 2008, Millrock negotiated a surface use agreement with White Mountain and anticipates a similar agreement will be negotiated for 2010.

Millrock has also entered an Option to Joint Venture agreement with Valdez Gold, Inc. on the Bluff project. The agreement states:

Valdez can earn an initial 55% interest in the project by meeting the following commitments prior to December 31, 2012:

incurring US$3.0 million in exploration expenditures;
making option payments of US$300,000; and
issuing 900,000 shares of Valdez to Millrock

US$500,000 minimum exploration expenditures in 2010 and initial cash payment of $US50,000 and 300,000 shares
Millrock will be the project operator for 2010 and thereafter at Valdez's discretion
Valdez may opt out of the agreement at any time once it has made $US500,000 in exploration expenditures
Valdez may elect to increase its interest to 75% by

making a further US$3.0 million exploration expenditure;
further option payments of $US600,000;
issuing 1.1 million additional shares over three years; and
meeting the obligations of lease agreements with Bering Straits Native Corporation

Upon Valdez earning a 75% interest, Millrock will have the opportunity to earn back 25% interest, such that both companies hold a 50% interest, by whichever the following is less:

expending two times the amount Valdez expended on exploration and property payments at that time; or
expending the amount necessary to define an NI 43-101 compliant resource at Bluff exceeding two million ounces of gold

A large Area of Interest surrounds the Bluff property. Lands that are staked or acquired from third parties may become subject to the agreement between Valdez and Millrock.

At Bluff, structurally controlled gold mineralization occurs within a 6.4 km long, arcuate band of schistose rocks near a contact with marble. Drilling by BHP in the late 1980s identified three zones of mineralization occurring in low-angle structures interpreted to be thrust faults. The zones contain several significant intersections including 5.48 g/t gold over 10.9 meters, 4.19 g/t gold over 4.5 meters, and 1.93 g/t gold over 16.3 meters. Located at tidewater, a placer deposit that is thought to have produced over 100,000 ounces of gold in the early 1900s is located just downstream from the known lode mineralization in the shallow marine environment.

Mapping by earlier investigators and BHP geologists has shown that quartz muscovite schists are overlain and underlain by massive marble units. The marble units are massive and grey to buff in color with variations in graphite content, silicification, and with mylonitization near the contacts. The schist is occasionally calcareous, has stratabound zones of sulfides, and is intensely quartz veined in the auriferous zones. The contacts between the units are thrust faults. The largest, most obvious structure is the Bluff Anticline. The fold axis is between Daniels Creek and Swede Creek and strikes north northeast with a plunge of 15° to 20° to the north. Detailed mapping has shown four separate folding events.

The relationship between the gold-bearing quartz veins in the schist and the complex structural history of these lithologic units is still speculative.

Previous soil sampling in the late 1980's by BHP showed three large geochemical anomalies with greater than 100 ppb gold spread over an area of about 4 kilometers in length. BHP drilled a total of 35 holes in the three target areas with results that were very attractive to Millrock. Though not NI43-101 compliant, BHP reported an approximate "resource potential" of over 0.5 million ounces of gold contained in three different zones. The Daniel's Creek zone was reported by BHP to contain "resource potential" of 300,000 ounces of gold in a deposit of 3 million tons grading 3.43 grams per tonne. In a 1991 summary report, BHP indicated there was potential for gold resources exceeding 2.5 million ounces. The mineralized zones are open and further drilling is required to define the resource and drill it to NI43-101 compliant standards. The following table is excerpted from the BHP report:

	grade/tonnage potential
Area	Tonnes	Grade opt	Grade gpt	Ounces
Daniels Creek	3,000,000	0.1	3.43	300,000
Saddle Area	1,500,000	0.11	3.77	165,000
Koyana Creek	2,000,000	0.02	0.69	40,000
			Total	505,000

Exploration Programs:
Millrock carried out exploration in 2008. Geological mapping and soil sampling identified new zones of mineralization, and identified high priority drill targets. Drilling and resampling of BHP core confirmed the presence of gold mineralization. Significant drilling is required on all zones to establish and delineate gold resources. There are numerous drill targets adjacent and down-dip from known gold zones and untested surface geochemical anomalies. A complete report documenting prior exploration work was prepared for Millrock by independent geologist Donald Stevens of Anchorage, Alaska and has been filed on SEDAR: Bluff Gold Prospect, National Instrument 43-101Technical Report June 5, 2009 Prepared by Donald L. Stevens Ph.D.

Targeted 4,500 meter of reverse circulation drilling;
Trenching may be carried out on targets of interest;
Expand surface geochemical survey coverage of the area;
Follow up and expand existing geochemical anomalies with additional sampling;
Compile project data into a GIS environment including the capability of 3D viewing of surficial and drill hole geology and geochemistry;
Recalculate resources reported by BHP and identify drilling targets to further expand resource.

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