VANCOUVER, BRITISH COLUMBIA, March 26, 2008 - Millrock Resources Inc. (MRO - TSX:V), is pleased to announce that it has acquired a gold property in the Circle District in north-central Alaska. A portion of the property consists of claims staked by Millrock, and another consists of a mining lease and claims that will be the subject of an option agreement with Spectrum Resources Inc, of Fairbanks, Alaska. Millrock has signed a Letter of Intent with Spectrum (the "Spectrum LOI"). A total area of 470 hectares is covered by the property, which is approximately 240 kilometers by road north of Fairbanks, Alaska near the communities of Circle Hot Springs and Central.
"Millrock is pleased to have acquired this prospective property." said Company President, Gregory Beischer. "Significant widths of gold mineralization indicate potential for a bulk minable target, and the prospect is virtually untested. The development logistics are excellent. We will mount an aggressive exploration program in 2008 to evaluate the gold mineralization that has been identified."
The Spectrum LOI contemplates the grant to Millrock of an option to purchase a 100% interest, and calls for US$3 million of exploration work over a four year term. Cash payments totaling US$200,000, including US$20,000 on signing, and US$30,000 at the first anniversary are scheduled. Spectrum will be issued 160,000 Millrock shares with 15,000 issued upon receipt of TSX Venture Exchange acceptance of the transaction, and 25,000 at the first anniversary. The option may be exercised at any time while the agreement is in effect for the purchase price of US$1.5 million. The owner would retain a 2.5% overriding royalty that may be reduced to 0.5% by payment of an additional US$3 million.
The Circle District has produced in excess of one million ounces of placer gold. Ketchem Creek, Portage Creek, and Bottom Dollar Creek, which drain the new Millrock claim group, are current placer producers, and are amongst the most prolific in the district. There are few documented lode gold occurrences in the district, and those that are known have seen little exploration.
The Circle Mining District occurs along the northern edge of the Tintina Gold Belt, an arcuate belt that transects central Alaska. Gold deposits within the belt are largely associated with Cretaceous granitic plutons. Magmatic hydrothermal fluids related to these intrusions transported and deposited gold in a wide variety of geological settings. The Ketchem property is largely underlain by the Two-Bit pluton, which intruded the surrounding country rocks approximately 90 million years ago. This age of intrusion has proven to be prolific for gold mineralization in this part of the Tintina Gold Belt.
Gold mineralization on the property occurs in quartz veins and stockworks both in magmatic, granitic intrusions, and in surrounding sedimentary rocks. Numerous gold occurrences are present on the property. Two prospects are of particular note: the 88 Prospect, and the Silver Chalice prospect.
At the 88 Prospect, three structurally controlled zones of gold bearing quartz veins and stockworks have been identified by prior workers, which include Placer Dome in 1990 and AMAX in 1992. Widths of the zones range between three and 25 meters. One of the zones is reported to grade 8.92 grams per tonne gold over a width of 4.6 meters in altered granite. A grab sample from the zone is reported to contain over 36 grams per tonne gold. Three reverse circulation drill holes have been drilled by Rudy Vetter and American Arctic Drilling in 1995, but appear not to have fully intersected the mineralized structures observed at surface.
Gold mineralization at the Silver Chalice prospect occurs in quartz - sulfide veinlets in altered sedimentary rocks. Grab samples collected by the property owner are reported to have returned values up to 32.0 grams per tonne gold.
This press release was approved by Gregory A. Beischer, Certified Professional Geologist, President & CEO of Millrock Resources Inc, and a "Qualified Person" as defined by NI 43-101.
ABOUT MILLROCK RESOURCES INC.
Millrock Resources Inc. is a TSX Venture Exchange listed company focused on discovery of high value mineral deposits. To date, Millrock has acquired four promising projects in Alaska, and intends on making further key acquisitions.
ON BEHALF OF THE BOARD
“Gregory Beischer”
Gregory Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT
Patrick De Witt, Manager, Investor Relations
(604) 638-3164
Toll Free: (877) 217-8978
Millrock Resources Inc.
750 World Trade Centre - 999 Canada Place
Vancouver, BC V6C 3E1
Canada
FORWARD LOOKING STATEMENTS
Some statements in this news release contain forward-looking information. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.
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