San Jose
Status: Joint Venture
San Jose Photo Gallery
Target: The San Jose project targets giant, high-grade porphyry copper (+/- gold and molybdenum) deposits at the junction of the Safford and Morenci porphyry copper trends. Freeport-McMoRan’s Morenci operations are one of the oldest and most productive open pit porphyry copper mines in Arizona, and has production and reserves totaling up to 10 billion tons. In 2007, Freeport-McMoRan started production at its Safford operations, which contains resources totaling at least six billion tons of copper ore in a series of four deposits. Geologic projections, as well as geochemical and geophysical surveys, indicate that a large porphyry copper deposit may be present beneath post-mineralization volcanic cover rocks and alluvium at the San Jose property. 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 San Jose property consists of two separate claim blocks totally 620 federal unpatented lode mining claims covering approximately 5695.75 ha. The San Jose claim blocks are situated in the Safford mining district of southeastern Arizona. The property is located in Graham County, approximately 26 km east of the town of Safford, 30 km southwest of Morenci and 161 km northeast of Tucson. The topography is comprised of gently rolling hills at an approximate elevation of 1,006 m ASL. Open scrub and mesquite are the only vegetation. Paved Highway 191 passes across the San Jose claim blocks, as does a high voltage power transmission line.
Agreement and Terms: Millrock entered into a purchase agreement with geologist Michael Schaefer of Tucson, Arizona on a small core claim block. Millrock subsequently secured a much larger land position by staking. Under the purchase agreement Millrock paid Mr. Schaefer US$20,000 and 20,000 shares of the company stock. A further US$10,000 and 15,000 shares will be paid to Mr. Schaefer on each anniversary that Millrock holds claims in the Area of Interest defined in the purchase agreement. Mr. Schaefer will be entitled to a one-time payment of US$2 million if commercial production is achieved at the San Jose property.
In early 2010 Millrock entered into an Option to Joint Venture Agreement with Inmet Mining Corporation concerning the San Jose and Millrock's nearby Dry Mountain 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: San Jose is located near the intersection of the Morenci and Safford porphyry copper trends. The trends are defined by a series of porphyry copper deposits, magmatic intrusions and structural features that manifest themselves in geological and geophysical analyses. Millrock's San Jose claim block contains the San Jose porphyry copper cell that past drilling suggests is masked by 60 to +500 meters of post mineral cover. Sol is another blind copper porphyry cell that is adjacent to Millrock's claim block and along strike on the Morenci trend. The San Jose deposit was discovered by Noranda in the 1990's due to Mr. Schaefer's work. Sol was discovered by Amax in the 1970's. Sol and San Jose have copper intercepts of 0.15 to almost 1% copper.
The San Jose claims cover a large magnetic susceptibility low that is similar in size and character to the Morenci magnetic low. At Morenci, the magnetic low is thought to represent magnetite destruction associated with intense phyllic alteration. Surrounding magnetic highs are thought to represent a porphyry intrusive complex at depth. Gravity data defines a regional basement high, and GeoTEM, CSAMT and IP geophysical surveys define structural boundaries possibly associated with covered mineralization. A copper - molybdenum biogeochemistry anomaly at Millrock's San Jose claims defines a large area of potential covered mineralization starting at the known San Jose porphyry and extending about two miles to the east and north.
Exploration Program: The 2011 exploration program is planned to consist of a ZTEM airborne survey and a drilling program. The ZTEM survey is scheduled for late January, building on and extending the coverage of the 2010 ZTEM survey. The first phase of the drilling program (5 drill holes, 4000 m) will commence in late January or early February and will target ZTEM anomalies. Additional drilling in 2011 will be based on the results of the initial phase.
Related News Releases:
September 13, 2011
Millrock Provides Update of Exploration Activities and Results
September 6, 2011
Millrock Announces Resumption of Drilling at San Jose Copper Porphyry Project, Arizona
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
|
