VANCOUVER, BRITISH COLUMBIA, August 22, 2007 - Millrock Resources Inc. (the "Company") (MRO - TSX:V) is pleased to announce that it has signed a Letter of Intent to form a Joint Venture with NPN Investment Group (NPN - TSX:V) with respect to the Divide Property on the Seward Peninsula, Alaska. Millrock and NPN will endeavor to conclude a definitive joint venture agreement within 30 days of today's date. NPN has recently acquired the Divide Property through an option agreement with David Lajack et al. (the Divide Option), see NPN press release of August 14, 2007.
Millrock will secure a 50% interest in the project by paying 50% of all costs associated with the Divide Option: a total of $500,000 over a five year period (all dollar values are in US funds). Additionally Millrock will issue 500,000 shares of the Company to NPN. The schedule of cash payments and share issues is summarized as follows:
On acceptance by the Exchange
Six month anniversary
One year anniversary
Two year anniversary
Three year anniversary
Four year anniversary
The Divide Option will require Millrock and NPN to pay a sliding scale net smelter return royalty ranging between 2% and 5% on production of precious metals and 3% on base and other metals. The sliding scale is tied to the price of gold. The royalty amounts may be reduced by 1% at any time upon payment of $1.0 million to the property owner.
The Divide Property is located in the prolific Cape Nome mining district about 27 miles (45 km) north of Nome, Alaska. Access to the property is via the Nome-Taylor highway which crosses the eastern boundary of the 3,520 acre (1,424 ha) claim block.
Underlain by structurally deformed, retrograde greenschist facies metasediments (turbidites and related deep water sediments); the rocks at the Divide Property are of late Proterozoic to Paleozoic age. These same rocks are the source of the alluvial gold deposits of the Nome camp, where approximately 5 million ounces of gold has been produced by placer mining methods. The Rock Creek Mine, a lode mine currently under construction by NovaGold Resources Inc., is located approximately 20 miles (33 km) to the southwest. Gold mineralization at Rock Creek is hosted in a similar geological setting to that at Divide. An exceptional soil anomaly has been found to exist on the Divide claims. Measuring over 8,000 feet (2,600 m) long and 2,000 feet (660 m) wide, the strongest portions, which exceed 200 ppb gold over a broad area, have not been previously drill tested. While narrow veins have been discovered by previous workers, mapping has identified a brittle siltstone bed that may have provided a favorable host for larger scale veining and gold deposition.
Millrock is pleased to form a partnership with NPN, and to expand its mineral right holdings on Alaska's Seward Peninsula; a region of exceptional mineral endowment that will be a focus for the Company.
A drill has been mobilized and drilling will begin immediately.
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 focused on the discovery of large metallic mineral deposits in Alaska. The potential in Alaska has barely been revealed for porphyry gold-copper-molybdenum deposits, intrusive-related gold deposits, sedimentary exhalative zinc-lead-silver deposits, and tin greisen deposits. To date, Millrock has acquired four promising projects, and intends on making further key acquisitions. The company has an active drilling campaign underway at its Divide and Inmachuk projects on the Seward Peninsula in western Alaska.
ON BEHALF OF THE BOARD
Gregory Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT
Gregory Beischer, President & CEO
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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