VANCOUVER, BRITISH COLUMBIA, November 3, 2009 - Millrock Resources Inc. (MRO - TSX:V) ("Millrock" or the "Company") is pleased to announce that it has executed an option agreement with Kiska Metals Corporation (KSK - TSX:V) pertaining to the Uncle Sam property located approximately 75 kilometres southeast of Fairbanks, Alaska in the Tintina Gold Belt. The Uncle Sam gold project is an Intrusion Related gold target hosted in a similar age of intrusive rocks to those which host the Pogo Gold Mine in east-central Alaska approximately 60 kilometres to the east of Uncle Sam. The Pogo Mine was discovered in the mid 1990's and hosts over 5 million ounces of gold. An extensive exploration data package provided to Millrock by Kiska Metals indicates that the Uncle Sam project consists of extensive anomalous surface gold geochemistry and a highlight drill intersection of 10.6 metres averaging 6.1g/t gold and a total of 18 individual drill intersections of greater than 1.0 g/t gold over drilled widths ranging from 3 to 12 m.
The Uncle Sam property was previously explored in the 1990s by Kennecott, Geoinformatics (a predecessor to Kiska Metals) and Midas Gold. Geophysical surveys have identified two intrusive bodies with associated gold mineralization. As a result of the prior exploration work, numerous drill-ready targets exist on the Uncle Sam claim block.
"This property has an exceptionally large gold geochemical anomaly overlaying magmatic rocks of favourable age and chemistry. Numerous anomalous drill intersections indicate a robust gold mineralizing system. All the signs of an Intrusive Related gold deposit are present," noted Millrock VP of Exploration, Philip St. George.
Gregory Beischer, Millrock President & CEO stated: "This property fits well into Millrock's portfolio of Intrusive Related gold targets in Alaska's Tintina Gold Belt. With a rising gold price, now is the time for Project Generator companies such as Millrock to acquire top quality projects. We will invite other companies to fund exploration in order to earn an interest in this project. Since the claims are near road access in moderate terrain and targets are fully delineated by past workers a drilling program in winter 2010 is a possibility."
The agreement grants Millrock the option to purchase a 100% interest in the Uncle Sam property by making cash payments, meeting exploration work commitments and by issuing Millrock shares in accordance with the following schedule:
Share IssuanceCash PaymentWork Commitment
30 days after TSX.V acceptance250,000US$40,000
November 1, 2010250,000US$40,000US$200,000
November 1, 2011250,000$US60,000US$300,000
November 1, 2012250,000$US60,000US$1,000,000
November 1, 2013US$1,200,000
Millrock may accelerate the purchase at any time prior to November 1, 2013 by making the remaining cash payments and stock issuances otherwise needed to earn the 100% interest plus an additional share issuance of 500,000 shares. Kiska would waive any remaining work commitment if the purchase is accelerated.
Additionally, Millrock will make 1.0 million share issuances to Kiska at each of the following milestones:
- Filing of a NI 43-101 compliant technical report disclosing a gold resource exceeding 1.0 million ounces; and
- Commencement of commercial production
A royalty of 2% NSR is payable to International Royalties Corporation.
An extensive exploration data package was provided to Millrock by Kiska. This data was reviewed by Millrock President and CEO, Gregory Beischer, a Qualified Person as defined by NI 43-101, who prepared and approved the information contained in this release, but the data has not been independently verified.
The option agreement is subject to acceptance of its filing by the TSX Venture Exchange.
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 four active exploration projects in Alaska, and three in Arizona.
ON BEHALF OF THE BOARD
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
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."