Dry Mountain
Status: Joint Venture
Dry Mountain Photo Gallery
Target: Millrock is targeting giant, high-grade porphyry copper (+/- gold and molybdenum) deposits at its Dry Mountain project. The property is located on the southeast extension of the Safford porphyry copper trend. The Safford deposits, upon which Freeport started production in 2007, contain resources totaling at least six billion tons of copper ore in a series of four deposits. Geologic projections indicate that a large porphyry copper deposit may be present beneath post-mineralization volcanic cover rocks and alluvium at Dry Mountain. Millrock seeks to discover a large tonnage porphyry deposit of sufficient copper grade to warrant extraction by open pit or block caving underground mining methods.
Location and Setting: The property consists of 443 federal unpatented lode mining claims and one Arizona State exploration permit that covers a total area of 4328.7 ha. The Dry Mountain claim block is situated to the southeast of the Safford mining district and south of the Morenci mining district in southeastern Arizona. The property is located approximately 28 km southeast of the town of Safford, 41 km south of Morenci and 161 km northeast of Tucson in Graham County. The land on the claims is flat in the north, but rises in the south, with elevations ranging between 1,006 to 1,311 m ASL. Paved highway 70 passes nine km north of the claim block, as does a power transmission line. Local access is by good dirt road. The claims can be easily traversed by all-terrain vehicle; there is little vegetation consisting of scrub and mesquite.
Agreement and Terms: The target was brought to the attention of Millrock by geologist Michael Schaefer of Tucson, Arizona. A core Arizona state prospecting permit was obtained by Millrock under a purchase agreement, and a larger property position was subsequently secured with federal mining claims. Under the terms of this agreement, Millrock has paid Mr. Schaefer US$20,000 and issued 20,000 shares of the company. A further US$10,000 and 15,000 shares has, and will be issued on each anniversary that Millrock holds claims in the Area of Interest defined in the purchase agreement. If commercial production is achieved, Mr. Schaefer will be entitled to a payment of US$2 million.
In early 2010 Millrock entered into an Option to Joint Venture Agreement with Inmet Mining Corporation (“Inmet”) concerning the Dry Mountain property and Millrock's nearby San Jose property. The agreement will give Inmet the opportunity to earn a 70% interest in the two claim blocks by spending US$4.0 million in exploration expenditures and making option payments of US$300,000. The 2011 exploration expenditure commitment is US$750,000. Millrock will be the exploration operator for this the second year of exploration.
Geology and Mineralization: Dry Mountain is located on the southeast extension of the Safford porphyry copper trend. The trend is defined by structural features, and a series of magmatic intrusive complexes identified in bedrock and traced by geophysical methods under post-mineralization volcanic cover and alluvium. Geochemical and geophysical surveys indicate a mineralized porphyry deposit may be present beneath the Millrock claims.
A copper - molybdenum biogeochemistry anomaly at Dry Mountain defines a large area measuring 5 kilometers by six km. The anomaly indicates the potential for a large buried porphyry. The Dry Mountain geochemical anomaly is the southeastern most in a string of significant anomalies that starts at the Safford deposits.
A magnetic high beneath the claims is thought to represent a porphyry intrusive complex at depth. Gravity data defines a regional pre-mineral basement high. Depth through post-mineral volcanic cover and alluvium is variable. Drilling by a previous operator indicates the thickness of Tertiary cover to be as much as 1097 meters.
Exploration Program:
The 2011 exploration program is planned to consist of a limited drilling program. The first phase of the drilling program (2 holes, 2000 m) is planned for late spring. The planned drilling will test ZTEM anomalies and depth of Tertiary volcanic cover.
Related News Releases:
September 13, 2011
Millrock Provides Update of Exploration Activities and Results
July 18, 2011
Millrock and Inmet Provide Update on San Jose and Dry Mountain Projects, Arizona
February 9, 2011
Millrock and Inmet Commence First Drilling Program on San Jose and Dry Mountain Projects, Arizona
May 12, 2010
Millrock Provides Corporate Update
March 11, 2010
Millrock Finalizes Option Agreement with Inmet for Exploration of San Jose and Dry Mountain Porphyry Copper Prospects in Arizona
January 8, 2010
Millrock and Inmet Mining Corporation Sign Letter of Intent to Enter Into an Option to Joint Venture Agreement on San Jose and Dry Mountain Projects, Arizona
January 12, 2009
Millrock Reports Property Payments for Arizona Properties
April 3, 2008
Millrock Announces Acquisition of Porphyry Copper-Gold Properties in Southeastern Arizona
|
