VANCOUVER, BRITISH COLUMBIA, December 22, 2009 - 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 Valdez Gold Inc. (TSX-V: VAZ) concerning Millrock's Bluff Project ("Bluff) east of Nome, on the Seward Peninsula in western Alaska, USA. The agreement will give Valdez the opportunity to earn an initial 55% interest in the Bluff project by spending US$3.0 million in exploration expenditures, making option payments of US$300,000, and issuing 900,000 shares of Valdez to Millrock prior to December 31, 2012. The 2010 exploration expenditures commitment is US$500,000 and initial payments are US$50,000 and 300,000 shares. Valdez is able to opt out of the agreement at any time once it has made US$500,000 in exploration expenditures. Millrock will be the exploration operator for the first year of exploration and thereafter at Valdez's option.
Once Valdez has earned a 55% interest, it may elect to earn an additional 20% for a total 75% interest by making additional exploration expenditures of US$3.0 million, further option payments of US$600,000, issuing 1.1 million additional shares of Valdez to Millrock over three years and meeting the obligations of lease agreements with Bering Straits Native Corporation.
Upon Valdez having earned a 75% interest, Millrock will have the opportunity to earn back a 25% interest, so that both Valdez and Millrock hold a 50% interest, by expending two times the amount Valdez expended on exploration and property payments at that time, or by expending the amount necessary to define an NI 43-101 compliant resource of greater than two million ounces of gold, whichever is less.
Millrock's President and CEO, Gregory Beischer, stated: "Millrock is pleased to have found Valdez as a partner for Bluff. Their technical team is strong and the companies share similar views on exploration approach, social responsibility and sustainable development. We look forward to drilling the targets developed by Millrock in a collaborative effort with Valdez Gold starting in summer, 2010".
Bluff is located approximately 80 km east of the town of Nome, Alaska on the south coast of the Seward Peninsula, on Norton Sound of the Bering Sea. A state-maintained road leads to within 18 km of the property. Bluff is 24 km east of the Big Hurrah gold deposit, which NovaGold is considering for production and processing at the Rock Creek Mine near Nome, Alaska.
While there is no certainty that a similar deposit will be discovered at Bluff, Novagold reports a Probable Reserve of 1,193,000 t grading 4.82 g/t gold (185,000 ounces of gold) and an Indicated Resource of 887,000 t at 2.68 g/t gold (76,400 ounces of gold) (NovaGold Technical Report - Rock Creek and Big Hurrah Project, February 1, 2008)
At Bluff, structurally controlled gold mineralization occurs within a 6.4 km long, arcuate band of schistose rocks near a contact with marble. Drilling by BHP in the late 1980s identified three zones of mineralization occurring in low-angle structures interpreted to be thrust faults. The zones contain several significant intersections including 5.48 g/t gold over 10.9 meters, 4.19 g/t gold over 4.5 meters, and 1.93 g/t gold over 16.3 meters. Located at tidewater, a placer deposit that is thought to have produced over 100,000 ounces of gold in the early 1900s is located just downstream from the known lode mineralization in the shallow marine environment.
Millrock carried out exploration in 2008. Geological mapping and soil sampling identified new zones of mineralization, and identified high priority drill targets. Drilling and resampling of BHP core confirmed the presence of gold mineralization. Significant drilling is required on all zones to establish and delineate gold resources. There are numerous drill targets adjacent and down-dip from known gold zones and untested surface geochemical anomalies. A complete report documenting prior exploration work was prepared for Millrock by independent geologist Donald Stevens of Anchorage, Alaska and has been filed on SEDAR: Bluff Gold Prospect, National Instrument 43-101Technical Report June 5, 2009 Prepared by Donald L. Stevens Ph.D., and is also available by following the link immediately below. The report recommends a program consisting of 4,500 metres of reverse circulation drilling and 1,500 metres of core drilling.
The lands upon which Bluff is located are owned by the Bering Straits Native Corporation and are leased to its wholly owned subsidiary Golden Glacier Inc. Millrock has an option to earn a 100% leasehold interest in the lands from Golden Glacier.
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 including that of the Bering Straits Native Corporation and Golden Glacier Inc.
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 a 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.
ON BEHALF OF THE BOARD
“Gregory Beischer”
Gregory Beischer, President & CEO
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
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.
"NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE."