VANCOUVER, BRITISH COLUMBIA, May 12, 2010 - Millrock Resources Inc. (TSX-V: MRO) ("Millrock" or the "Company"), following a very active run-up to the beginning of our 2010 field season, is pleased to provide a summary update of the Company’s recent project and financing activity, and the exploration planned for 2010:
- Eleven Gold/Copper Projects Generated in Alaska and Arizona
- Five Working Partners Secured to Finance Exploration
- Kinross, Teck and Altius Take Substantial Equity Positions
- Drilling Begins at Galiuro Porphyry Copper Prospect in Arizona
- Major Drilling Programs on Gold Projects Planned for Summer 2010 in Alaska
Robust Project Generation
Millrock has established itself as a premier "Project Generator" company. In its goal to discover and develop gold and copper deposits in North America, the Company generated eleven large-scale projects in Alaska and Arizona, seven new projects in the last year alone. In Alaska, focus has been on three emerging gold districts, the Kahiltna Terrane, the Seward Peninsula and the Tintina Gold Belt. In Arizona, our projects are within the proven San Manuel/Copper Creek and Safford/Morenci porphyry copper producing districts in the southeast portion of the state.
Kahiltna Terrane, Alaska Millrock has four projects in this area of south-central Alaska in what appears to be a northern extension of the system that hosts the giant Pebble deposit. The principal project is the 13,157 hectare Estelle property, which has been optioned by Teck American Incorporated. In the agreement (see here) announced May 4, 2010, Teck is investing $600,000 in Millrock for the exclusive right to earn a 65% interest in Estelle with the expenditure of $8.6 million over four years and payment of US$400,000.
Estelle has some excellent surface indications of a large-scale gold deposit. Millrock and Teck will do further surface exploration in summer 2010 to define and develop drill targets for an aggressive program in 2011. Estelle is just west of Kiska Metals’ advanced Whistler project.
In alliance with Altius Resources, Millrock accelerated its regional reconnaissance in the past year resulting in the staking of three other properties in the Kahiltna Terrane. The 1,878 hectare Monte Cristo and the 1,683 hectare St. Eugene properties were both designated for joint venture by Altius. The third, the 2,331 hectare Revelationproperty, about 50 km further northwest, is in proximity to International Tower Hill’s Terra property. Following our project generator model, all three properties are available for option in this emerging area gold play.
Seward Peninsula, Alaska In this historical placer mining region of western Alaska, Millrock has packaged two large projects, predominantly land leased from the Bering Straits Native Corporation. The aim of this innovative partnership (see here) is to unlock the mineral wealth of this rich but underexplored region of Alaska.
The Bluff project covers 142 sq km about 80 km east of Nome, ground previously worked by BHP Minerals in the 1980s. A limited drilling program by Millrock in 2008, confirmed the gold resource potential of the property and in 2009 an option agreement was reached with Valdez Gold Inc. to underwrite further exploration. A drilling program of approximately 5,000 m is planned to start in July 2010.
The Council project, comprising three land tracts (Council, Albion and Warm Creek) and a surrounding area of interest covering over 900 sq km, is under option to Kinross Gold Corporation. Drilling is planned to begin in June with Millrock as operator. The overall aim of the Kinross-Millrock joint venture is to locate the bedrock source of the alluvial gold which has been placer mined in the past, some 300,000 to 500,000 ounces.
Tintina Gold Belt, Alaska This prolific belt, source of historical placer gold production and host to the Pogo and Fort Knox gold mines and the Donlin Creek deposit, spans east-west from BC/Yukon to western Alaska, and has seen burgeoning exploration activity in recent years. Most notable has been the gold discovery in the western Yukon of Underworld Resources, recently acquired by Kinross, and the Livengood project of International Tower Hill Mines. Millrock’s two properties are located in eastern Alaska.
The Uncle Sam property, covering 3,131 hectares 75 km southeast of Fairbanks, was acquired from Kiska Metals in 2009. With abundant local infrastructure supporting exploration and several attractive drill targets, Uncle Sam is currently the subject of joint venture negotiations that could potentially fund drilling on this highly prospective gold property this field season.
The Fortymile property covers a 100%-owned 9,107 hectare claim package in east-central Alaska near the Yukon border, a historic mining region where over 300,000 ounces of placer gold production has been recorded. Data acquired from Kennecott in 2009 points to a number of targets that warrant drilling. Millrock is currently seeking a joint venture partner.
Galiuro Project, Arizona The project, covering 2,553 hectares staked in 2008, is located 80 km southeast of the Resolution deposit in southeast Arizona, currently being drilled by Resolution Copper Mining, a joint effort of Rio Tinto and BHP Billiton. Resolution is reported to contain an Inferred Resource of 1.34 billion tonnes containing 1.51% copper and 0.04% molybdenum. The Galiuro claim block is situated on the San Manuel-Copper Creek porphyry copper trend, with the Copper Creek property just west of the claim block and a very large, intense alteration zone to the east.
In spring 2009, Galiuro was optioned by Vale Exploration Canada Inc. which may expend up to US$3.5 million and make cash payments totaling US$850,000 prior to December 31, 2012 to earn a 60% participating interest in the property. With Millrock as operator, Vale has agreed to a $600,000 drilling program for 2010 which has just begun.
San Jose & Dry Mountain Project, Arizona These two properties, which cover a total 4,172 hectares, are located on the highly prolific Safford and Morenci porphyry copper trends in southeastern Arizona. The series of deposits in this region account for some 10 billion tons of past copper ore production.
In 2009 the properties were optioned to Inmet Mining Corporation which may expend US$4.0 million and make cash payments totaling US$300,000 to earn a 70% interest. Millrock will operate the 2010 field program that will entail a $500,000 spring program of geophysical surveys designed to refine drill targets, with drilling to follow as early as fall.
Major Working Partners Secured
A significant achievement of our Company in the last year was establishing Millrock as a premier project generator to the mining industry. Representative of the value we offer in that role is the quality of working partners we have attracted. Teck, among our industry’s leaders and an experienced operator in Alaska, chose our Estelle project to renew its Alaskan gold exploration and development initiatives.
As a project generator, we identify and package mineral properties for exploration, and enlist partners to underwrite the costs. The search for major new mineral deposits is an expensive business, and sharing the risk/reward with Millrock we are fortunate to also count as partners such leading industry names as Vale, Inmet and Kinross, as well as another successful project generator – Altius Resources Inc. Our strategic alliance with them, forged early in 2009, afforded the financial means necessary to continue our regional reconnaissance when the markets for exploration financing were still very tight.
Financings Raised Over $3 Million
As markets improved throughout 2009 and into 2010, Millrock succeeded in raising over $3 million via private placement. Most gratifying is that three of our working partners - Teck (2.8%), Kinross (6.4%) and Altius (8.9%) - took significant equity stakes in our Company.
2010 Exploration Budgeted at $3.5 Million; Drilling Begun
The 2010 field season, with expenditures budgeted at $3.5 million, has begun. Among four planned drilling programs, Galiuro is the first to commence and we began pulling core on May 4th. Drilling at Bluff and Council is scheduled to begin in June/July and drilling at San Jose/Dry Mountain is anticipated to commence in the fall.
ABOUT MILLROCK RESOURCES INC.
Millrock is a TSX Venture Exchange listed Company intent upon the discovery of large, 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 eight active exploration projects in Alaska, and three in Arizona. Six 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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