Millrock Provides Update of Exploration Activities and Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/21/12 -- Millrock Resources Inc. (TSX VENTURE: MRO) ("Millrock" or the "Company") is pleased to provide an activity update for its exploration projects in Alaska and Arizona. Keeping in line with its Project Generator - Joint Venture business model, Millrock has continued to generate numerous high-quality projects throughout the year, and secured substantial funding for exploration on new and existing projects. The following are highlights since the Company's last corporate update.
General:
In 2012, partner funded drilling has occurred on, or is planned for, six different projects; three in Alaska and three in Arizona. Earlier-stage exploration work will be done on five other projects in anticipation of drilling in 2013. Millrock continues to strictly and rigorously apply the Project Generator - Joint Venture business model upon which its business has been founded. This year, Millrock's exploration expenditures are on track to exceed US$11 million, with 90% of the funding being provided by partner companies that are earning-in through option agreements. As the exploration operator for the projects generated, Millrock receives management fees, as well as option agreement payments during the earn-in phase. These revenues offset a major portion of overhead expenses. Despite the challenging economic conditions Millrock remains a very active explorer.
Strategic Alliances:
Altius Strategic Alliance (Alaska): Funding placed by Altius Minerals Corporation in 2009 and 2010 (see press release dated June 29, 2010) has allowed Millrock to generate six projects, three of which have become subject to earn-in agreements with other companies. Approximately US$500,000 will be spent using strategic alliance funds in 2012 to generate more projects and advance other third-party partnerships.
Q4P Vale Strategic Alliance (Alaska - copper-gold porphyry targets): This project is budgeted at US$1 million for 2012 and is funded by a wholly owned subsidiary of Vale S. A. ("Vale"). Reconnaissance geochemical exploration and airborne geophysical surveys are in progress and exploration crews are presently in the field. The first "Designated Project" proposed to Vale from strategic alliance work was accepted and was recently announced as a stand-alone project called AUDN (see press release dated June 11, 2012). Surface surveys will be carried out in July and August under a separate budget of US$830,000. The property is located approximately 100 km to the southeast of the Pebble deposit. At this location Millrock perceives similar geological features as are present at Pebble, a large porphyry copper-gold deposit being advanced by the Pebble Limited Partnership a company owned by Anglo American plc and Northern Dynasty Minerals Ltd.
Alaska Exploration
Estelle Project, Kahiltna District, Alaska (target: large, intrusion-related gold deposit): On April 2, 2012, a joint venture was formed with Teck American Inc. ("Teck") with Teck holding 55% and Millrock holding 45% of the project (see press release dated April 2, 2012). A drilling program is set to commence during the first week of July with a budget set by the partners at US$1.8 million. Seven holes totaling up to 1,500 m are planned. Five of the planned holes will be drilled at the Oxide Ridge occurrence. This drilling will follow up on hole SE-001 drilled in 2011, which intersected variably altered magmatic intrusive rock with quartz veins and stockworks containing gold mineralization over the entire length of the hole. Most of the mineralization was found from depths of 31.8 m to 397.1 m and returned a weighted average of 0.4 g/t Au over 365.3 m.
Humble Project, Southwest Alaska (target: porphyry copper-gold deposit): Millrock recently completed a drilling program consisting of four holes. Porphyry style alteration was intersected. Millrock and partner Kinross Gold Corporation ("Kinross") are contemplating a follow-up drilling program for later in 2012.
Council Project, Seward Peninsula, Alaska (target: sediment-hosted or metamorphogenic gold deposit): Millrock plans to drill six shallow holes to test strong surface gold geochemical anomalies and gold-bearing veins discovered by prospecting crews at the Elkhorn prospect. The project is budgeted at US$1 million and is expected to commence in mid-July. Kinross is earning in to this project.
Arizona Exploration
Monsoon Project, Safford Trend, Southeast Arizona (target: porphyry copper deposit): Inmet Mining Corporation ("Inmet") recently made an agreement with Millrock that will allow that company to earn up to a 70% interest (see press release dated May 24, 2012). Surface geochemical and geological surveys are planned to follow up on a ZTEM-mag airborne survey already completed. The project is budgeted at US$350,000. Drilling may follow later in 2012 or early 2013.
San Jose and Dry Mountain projects, Safford Trend, Southeast Arizona (target: copper porphyry): With funding from partner Inmet, Millrock plans to drill four rotary holes to test ZTEM - mag - geochemical - geological targets on the properties. Conditions permitting, drilling operations will commence in July.
About Millrock Resources Inc.
Millrock Resources Inc. is a premier project generator to the mining industry. In the search for world-class gold and copper deposits in mineral rich Alaska and Arizona, Millrock identifies, packages and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk and attendant shareholder dilution taken on by most exploration companies. Millrock currently has twelve active exploration projects, eight gold-copper properties in Alaska, and four porphyry copper prospects in Arizona. With funding primarily coming from its joint venture partners, Millrock plans to carry out exploration programs with a total value of more than US$11 million in 2012. Business partners of Millrock include some of the leading names in the mining industry: Kinross, Teck, Vale, Inmet and Altius, as well as junior explorer Crescent Resources.
ON BEHALF OF THE BOARD
Gregory Beischer, President & CEO
Some statements in this news release contain forward-looking information, including without limitation statements as to the planned 2012 exploration program and budgets for Millrock's exploration efforts in Alaska and Arizona. 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."
Contacts:
Millrock Resources Inc.
Gregory A. Beischer
(604) 638-3164
(604) 688-9620 (FAX)
www.millrockresources.com
