VANCOUVER, BRITISH COLUMBIA, January 8, 2010 - Millrock Resources Inc. (TSX-V: MRO)("Millrock" or "the Company") is pleased to announce that it has signed a letter of intent to enter into an Option to Joint Venture Agreement with Inmet Mining Corporation (IMN - TSX) concerning Millrock's San Jose and Dry Mountain claims south of the town of Safford and southwest of Morenci, Arizona, USA. 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 2010 exploration expenditure commitment is US$500,000 and the initial payment is US$50,000. Millrock will be the exploration operator for the first year of exploration and thereafter at Inmet's option.
Millrock's Vice President of Exploration, Phil St. George, stated: "There is every indication of porphyry copper deposits under shallow cover beneath Millrock's claims. A modern geophysical approach and an aggressive drilling campaign will determine whether another large porphyry system exists."
Millrock's San Jose project occurs right at the intersection of the exceptionally prolific Safford and Morenci porphyry trends. The Safford deposits, now apparently becoming the flagship mines of Freeport McMoran Copper & Gold in the United States, form a linear northeast striking trend. The San Jose project is located approximately six km from the Sanchez deposit at the southwest end of the Safford trend. Morenci is located approximately 30 km to the northeast. Together, Safford and Morenci account for approximately 10 billion tons of past copper production and future reserves and resources. A porphyry cell located on Millrock's claims was discovered by drilling done by Noranda Inc. in the early 1990s. Geochemical, geophysical and geological vectors indicate that a large porphyry deposit may exist just to the northeast of the area previously drilled.
At the Dry Mountain claim block, which is located 20 km to the southeast of San Jose on the Morenci Trend, a geochemical anomaly measuring approximately 10 km in diameter is present. The multi-element anomaly is strong in copper and molybdenum. The area is completely covered in overburden, but depth to bedrock is thought to be less than 200 m. No drilling has previously been done.
In early 2010 Millrock and Inmet plan to carry out a ZTEM airborne survey with follow-up induced polarization at both claim blocks to refine drill targets for future drilling.
The property consists of federal mining claims managed by the US Bureau of Land Management, and State of Arizona Prospecting Permits. The land is the subject of a purchase agreement. Millrock owns the land 100% provided that it continues to make annual payments of US$20,000 and share issuances of 20,000 Millrock shares to the Tucson geologist Michael Schaefer. Mr. Schaefer will be entitled to a cash payment of US$2.0 million if a mine is put into production on the claims. Inmet will be responsible for the cash payments during the option period.
Completion of the transaction contemplated in this news release is subject to certain conditions including, without limitation, the signing of a definitive agreement and the receipt of all necessary regulatory and third party approvals.
The technical information in this news release was reviewed by Gregory Beischer, Millrock's President and CEO, a Qualified Person as defined in NI 43-101.
ABOUT MILLROCK RESOURCES INC.
Millrock is TSX Venture Exchange listed company intent upon the discovery of high value mineral deposits, with a focus on Alaska gold deposits and Arizona copper-gold porphyries. The Company follows a project generator - joint venture business model that capitalizes on Millrock's knowledge and ability in two outstanding mining jurisdictions. This model shares risk by partnering with other companies that invest capital to move exploration projects toward development and production. Millrock currently has five active exploration projects in Alaska, and three in Arizona. Four of the projects are the subject of joint venture agreements in which other companies are making exploration expenditures to earn an interest in Millrock's projects. Drilling is planned on at least four of the Company's projects in 2010.
FOR FURTHER INFORMATION, PLEASE CONTACT
Gregory A. Beischer, President & CEO
Phone: (604) 638-3164
Toll Free: (877) 217-8978
Millrock Resources Inc.
750 World Trade Centre - 999 Canada Place
Vancouver, BC V6C 3E1
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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