VANCOUVER, BRITISH COLUMBIA, March 3, 2009 - Millrock Resources Inc. (MRO - TSX:V) ("Millrock" or the "Company") is pleased to announce that it has executed a letter agreement with Vale Exploration Canada Inc. ("VEC"), an affiliate of Vale Inco Limited, each a wholly-owned subsidiary of Companhia Vale do Rio Doce ("VALE") (NYSE: RIO) concerning Millrock's Galiuro project north of Tucson, Arizona. VEC will have the option to earn a 60% joint venture interest in the claim group by making cash payments and exploration expenditures. "Millrock is very pleased to have made this arrangement with VALE. Under challenging economic conditions, this agreement allows Millrock to create shareholder value without diluting its capital structure. Millrock has the early-stage exploration expertise, but should a discovery be made, VALE will have the financial and technical horsepower to bring a giant copper-gold porphyry to production. It's a good fit for both companies." commented Company President & CEO Gregory Beischer.
Under the agreement VEC has committed to funding a minimum of US$250,000 in exploration programs prior to December 31, 2009 and may elect to fund a further US$250,000 prior to December 31, 2009 and a further US$3,000,000 over the subsequent three years through to December 31, 2012. VEC has also made a cash payment of US$75,000 on execution of the agreement and may elect to make additional cash payments totaling US$775,000 over three years to earn the option to acquire an undivided 60% participating interest in the underlying claims. Thereafter further expenditures will be funded by the parties pro-rata in accordance with their respective participating interests. VEC also has the option to acquire an additional 10% participating interest in the claims if it completes a favorable feasibility study. Millrock will be the exploration manager until December 31, 2010 and thereafter may continue as manager at VEC's discretion.
The target at the Galiuro project is a giant, high-grade porphyry copper - gold - molybdenum deposit that can be mined by open pit or underground block caving mining methods. The project is situated 80 kilometers southeast of the Resolution deposit, which is currently being drilled off by Rio Tinto, and is reported to contain a resource of one to two billion tons grading between 1% and 2 % copper. The Galiuro claim block is situated on the San Manuel-Kalamazoo and Copper Creek porphyry copper trends. The Copper Creek mine is situated just to the west of the claim block and a very large, intense alteration zone occurs to the east. The claims are largely underlain by Tertiary-aged post mineralization volcanic rocks. Magnetic data suggests that intrusive complexes occur beneath the volcanic cover. Epithermal copper mineralization occurs along deep seated structures within the volcanic rocks on the property, and may have be related to older Laramide-aged porphyry mineralization at depth.
To determine whether a major porphyry copper-gold deposit is present, a comprehensive, sequential exploration program is planned. Geological mapping, airborne magnetic and electromagnetic surveys, and ground-based geophysical surveys will be carried out prior to an initial drilling campaign. Work will begin in early March 2009.
Located in southeastern Arizona the property is 16 kilometers east of Mammoth, and 80 kilometers northeast of Tucson Arizona. Topography is steep and rugged at elevations ranging from 4200 to 5500 feet. Paved highway 77 passes 18 kilometers west of the claim block and access to the edge of the claim block is provided by four wheel drive access.
Gregory Beischer, the Company's President and Chief Executive Officer and a Qualified Person as defined by NI 43-101, prepared and approved the information contained in this release.
ABOUT MILLROCK RESOURCES INC. Millrock Resources Inc. is a TSX Venture Exchange listed company intent upon the discovery of high value mineral deposits, with a focus on Alaska and Arizona. Millrock currently has four active exploration projects in Alaska, and three in Arizona.
ABOUT VALE EXPLORATION CANADA INC. VEC is a wholly-owned subsidiary of VALE, the world's second largest mining company by market capitalization with its headquarters in Brazil. VALE reported revenues of US$ 33.1 billion and net earnings of US$ 11.8 billion as of December 31, 2007. VALE is committed to the pursuit of sustainable growth by operating with respect for the natural environment and being an ethically and socially responsible company.
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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