Gold Newsletter (Brien Lundin Article)

Since we last covered this grass-roots exploration play, Millrock has gone on a spring buying binge, adding several attractive properties to their growing portfolio in Alaska and Arizona - including the big deal that we’ve been hoping for.

First off, the company acquired the Ketchem gold property in the Circle District in northcentral Alaska through claim staking and a mining lease. The Circle District has produced more than a million ounces of placer gold, and the Ketchem, Portage and Bottom Dollar creeks that drain the new property are current placer producers, and among the most prolific in the district.

The 470-hectare Ketchem property hosts significant widths of gold mineralization that indicate the potential for a bulk-mineable target. Millrock plans an exploration program this year to evaluate the gold mineralization on this virtually untested property.

Millrock also picked up two copper properties in sunny Arizona to enable it to explore and deliver news during the winter season. The San Jose and Dry Mountain projects are located in the Safford-Morenci area of southeastern Arizona and have excellent potential for giant copper-porphyry deposits. Interestingly, both properties were staked, which is a rare occurrence in an area well known for its mineral potential. Millrock plans major drilling campaigns for both properties starting in late 2008 or 2009.

Millrock then struck a deal with International Tower Hill Mines Ltd. (ITH.V) to buy its rights to the South Estelle gold property,  which covers 10,198 hectares some 160 kilometers northwest of Anchorage in the Rainy Pass district. The property is next door to Kennecott Corporation’s recently announced Whistler copper-gold discovery, which is managed by Geoinformatics Exploration (GXL.V).

South Estelle hosts high-grade gold veins over most of its 20-kilometer length and, in the eyes of VP exploration Philip St. George, is reminiscent of the Donlin Creek deposit, which contains more than 30 million ounces of gold. Millrock is targeting bulk tonnage intrusive-related gold deposits at this location and plans to drill in July.

And finally, Millrock locked up the big deal we’ve been waiting for: The company signed an agreement with a subsidiary of the Bering Straits Native Corporation to explore approximately 395 square kilometers that are highly prospective for gold deposits. This deal is more evidence of Millrock’s strong relationships with regional tribal corporations, perhaps one of the most valuable sources of new projects in the Alaska.

This single property acquisition increased Millrock’s holdings by about 50%. And it isn’t land for land’s sake - this is highly prospective territory, with over a million ounces of placer gold having been mined across just three targets, and prime evidence of the lode sources nearby.

A property position this large will demand a lot of boots-on-theground geological work, and it doesn’t seem likely that any target will be drilled before summer 2009. But the chances for a major, company-making discovery coming from this ground are very good,and Millrock has the talent and expertise to find it in due time.

Meanwhile, the company will be doing a good bit of drilling on other properties, including the Divide gold project in June and South Estelle in July. So news flow will help keep it on the radar screen and - considering its microscopic market cap - good results could take the stock quickly higher.

But this isn’t a drill-hole play for short-term speculators. This is a people play, where you’re betting on a management team that’s done it before, knows how to do it again, and has already assembled the properties it feels can get it there.

For those with a time horizon of at least two years, Millrock at its current level is one of the best opportunities out there right now.

Millrock Resources Inc.
Recent Share Price:.............C$0.27
Shares Outstanding: ....18.2 million
Market Cap:..............C$4.9 million
Shares Outstanding Fully Diluted:..............23.7 million
Market Cap Fully Diluted: ...........C$6.4 million

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