VANCOUVER, BRITISH COLUMBIA, October 22, 2010 - Millrock Resources Inc. (MRO - TSX:V) ("Millrock" or the "Company") released today results of a drilling program and regional geochemical survey on their Council gold project in western Alaska, a joint venture with Kinross Gold Corporation (NYSE: KGC, “Kinross”). The Council District, located on the Seward Peninsula of western Alaska, is an extensive area of past placer production where over 300,000 ounces of placer gold have been produced. The exploration agreement with Kinross covers a 900 sq km area of interest in which Kinross can earn up to 75% interest. Millrock’s current interests consist of a 295 sq km landholding, in which they are able to secure 100% interest in all mineral rights. Details of the land agreement with Kinross are detailed in the June 23, 2010 news release (here).
The 2010 program was designed to 1) drill test coincident gold arsenic anomalies in the uplands of a historic placer region at the Albion prospect, 2) conduct detailed soil surveys as infill programs between existing anomalous regions and 3) to begin testing the largely under-explored land package with a reconnaissance geochemical survey. Millrock is the operator for exploration activities on the project with funding provided by earn-in partner, Kinross.
Bedrock geologic units in the Council area are primarily part of the Precambrian to Paleozoic, blueschist-facies metamorphosed Nome Group. Gold mineralization is preferentially hosted in the more siliceous schist and quartzite units of the Mixed Unit with larger deposits occurring in shear structures and in brittle rocks. The contact with an overlying marble unit is a favorable deposition site.
Initial drill testing, at the Albion prospect, consisted of short (~120 m) holes drilled by Millrock. In total, 2,062 m of reverse circulation drilling in 17 holes was completed. Two holes, CNL1013 and CNL1014, intersected > 1 g/t Au mineralization, confirming bedrock mineralization at the Albion Prospect. Holes were collared in, and ended in, calcareous schist suggesting that drilling failed to test the anticipated structural and stratigraphic targets.
The results of the program are listed in the table below. Widths are reported as drill widths, not true widths, due to limited geological information in the area.
|Hole||From (ft)||To (ft)||Width (ft)||Width (m)||Au (g/t)|
|* 200 ppb cut off used for composite calculations, reporting only average grades > 0.4 g/t|
Surface geochemical survey results were encouraging. A total of 1990 soil samples were taken in the region with the best result of 344 ppb coming from an infill survey testing the ground between the northwest-striking, 900 m by 2000 m, Albion geochemical anomaly and an even larger, parallel anomaly to the northeast. The new survey results join the Albion and northern anomaly areas along a previously undefined, northeast trend consisting of anomalous gold and pathfinder elements. The total length of this new trend is 3800 m.
The reconnaissance geochemical survey identified two new areas with anomalous gold (up to 150 ppb gold in soils)and associated pathfinder elements. The areas are over 12 km apart with limited geochemical sampling between them.
Drill cuttings and geochemical samples from the Council program were collected on site, sealed in bags and shipped to Fairbanks, Alaska for assay at Alaska Assay Laboratories, a subsidiary of the Alfred H. Knight Group, an international laboratory with stringent quality control and quality assurance programs. Millrock also had its own quality control / quality assurance programs in place.
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 Resources Inc. is a premier project generator to the mining industry. In the search for world-class gold and copper deposits in mineral rich Alaska and Arizona, Millrock identifies, packages and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the financial risk and attendant shareholder dilution. Millrock currently has eleven active exploration projects, eight gold-copper properties in Alaska, and three porphyry copper prospects in Arizona. Its joint venture partners, underwriting some $7.5 million of exploration in 2010, include some of the leading names in the mining industry: Kinross, Teck, Vale, Inmet and Altius, as well as junior explorers Valdez Gold, Brixton Metals and Crescent Resources.
ON BEHALF OF THE BOARD "Gregory Beischer” Gregory Beischer, President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT: Gregory A. Beischer (604) 638-3164 Millrock Resources Inc. 750 World Trade Centre 999 Canada Place Vancouver, BC V6C 3E1
Some statements in this news release contain forward-looking information, including without limitation statements as the ability to confirm the presence of uranium deposits underlying the densely drilled areas of the property, the potential to expand resources by drilling, the forward-looking price of uranium, the potential for amenability to ISR mining, the ability to secure a funding partner for the project, the completion of the option to purchase some of the claims, and the ability to secure funding to carry out the planned exploration and development . 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.
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