VANCOUVER, BRITISH COLUMBIA, April 23, 2008 - Millrock Resources Inc. (TSX-V:MRO) is pleased to announce that it has signed an Exploration Agreement with Golden Glacier Inc., a subsidiary of the Bering Straits Native Corporation (BSNC). The large land package subject to the agreement covers approximately 395 square kilometers, and is highly prospective for intrusive-related and metamorphogenic, structurally controlled gold deposits. The lands are located along the southern shore of the Seward Peninsula, east of Nome. A map showing project locations can be viewed here. There are three primary areas of interest: Council, Bluff and Ungalik. "We are very pleased to be entering a business relationship with BSNC. When Native land claims were settled in Alaska 36 years ago, BSNC wisely selected lands in the source areas of some of Alaska's largest and richest placer gold deposits. Despite the obvious potential, surprisingly little exploration has been done to search for the hard rock lode sources of the placers. The little drilling that has been done resulted in significant gold intersections, but no follow-up work has been done in the past two decades. The Seward Peninsula has outstanding gold resource endowment, and Millrock now has access to some of the most prospective lands in the region," said Company President, Gregory Beischer.
Vice-president of Lands and Resources for BSNC, Matt Ganley commented, "Millrock has expended a great deal of effort to inform the region's villages of their plans and is working closely with the village corporations that hold surface and subsurface estate in Millrock's area of interest. BSNC and our subsidiary Golden Glacier, Inc. are confident that this exploration agreement will expand our knowledge of the area's resources while enhancing the long-term economic base of the local communities. Millrock has demonstrated its sincerity and commitment to sustainable development, education, and local hire and service procurement. The agreement with our company includes a generous annual contribution to Bering Straits Foundation's scholarship fund."
The Council district has produced in excess of one million ounces of placer gold, and is readily accessible by road from Nome. The Bering Straits land covers known vein gold occurrences, but little exploration has been conducted since the late 1980's. The veins are preferentially hosted by graphitic, calcareous schist or quartzite and in addition to gold, also contain arsenopyrite and stibnite. Millrock will use geological, geophysical and geochemical methods to target sites that can host large stockwork vein systems.
At Bluff, structurally controlled gold mineralization occurs within an anticline. The prospective arcuate structure is mineralized over a distance of 6.4 kilometers. Prior drilling by BHP in the late 1980's resulted in 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, an exceptionally rich placer deposit that produced over 100,000 ounces of gold is located just downstream from the lode prospect. Much of the structure remains untested. Bluff is located 24 kilometers east of the Big Hurrah deposit, which NovaGold is considering for production and processing at the Rock Creek Mine.
Ungalik is situated along a major fault system that sutures the much older Seward Peninsula rocks to the rest of Alaska. The land package is centered on the source rocks of a placer deposit that has produced more than 300,000 ounces of gold. No lode exploration has been carried out in the 36 years that BSNC has owned the lands. Gold bearing vein talus has been documented in the hills above the placer deposit. The veins occur along the contact of the Tertiary aged Christmas Mountain Intrusive Complex. Potential for large scale, intrusive hosted gold deposits exists at this location.
The agreement with BSNC has a five year term, and grants to Millrock the exclusive right to explore for and develop mineral deposits. Millrock may exercise an option to lease the land at any time during the term of the agreement. The exploration agreement calls for total expenditures of $4 million, with a first year work commitment of $300,000. Annual option payments will total $550,000 over five years with $30,000 on signing. Additionally, over the life of the agreement Millrock will contribute a total of $40,000 to the Bering Straits Foundation Scholarship Fund, including an initial payment of $5,000. The agreement also calls for annual issuance of Millrock shares. The first allotment is 100,000 shares and these will be issued upon acceptance of the agreement by the TSX Venture Exchange. The total issuance will be one million shares if the agreement remains in effect for the entire five year term. If a lease option is exercised, the lease agreement will require an annual advanced minimum royalty payment that escalates over time. These payments would be credited against a production royalty that ranges between 2.5% and 5% on a sliding scale tied to gold price. A contracting preference is granted to BSNC subsidiary companies that may provide service to Millrock, and shareholders of BSNC are given an employment preference. BSNC is granted the option to become a 10% participating partner in a mine development. Most of the lands are split estate. The surface rights are owned by local village corporations, and Millrock is in the process of negotiating agreements with these corporations.
This press release has been prepared by Gregory Beischer, Certified Professional Geologist, President and CEO of Millrock Resources Inc. Mr. Beischer is a Qualified Person as defined by NI 43-101. Mr. Beischer approved the information contained in this release.
ABOUT MILLROCK RESOURCES INC.
Millrock Resources Inc. is a TSX Venture Exchange listed company intent upon the discovery of high value mineral deposits, with a focus on Alaska and Arizona. Millrock currently has five active exploration projects in Alaska, and two in Arizona. The Company plans to drill on three of its projects in Alaska in summer of 2008.
ON BEHALF OF THE BOARD
Gregory Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT
Patrick De Witt, Manager, Investor Relations
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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