Millrock Discovers New Gold Zone at Estelle Project, Alaska
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/10/12 -- Millrock Resources Inc. (TSX VENTURE: MRO) ("Millrock" or the "Company") announced today results from the 2012 drilling program at the Estelle gold property located northwest of Anchorage, Alaska. Exploration drilling was done at the RPM, Oxide and West Wing prospects, three of the nine prospects occurring within the Estelle project area. Nine core holes totaling 1,379 meters were drilled as part of the 2012 program with all nine intersecting gold and/or copper mineralization. The exploration work was managed by Millrock on behalf of Teck American Incorporated ("Teck"), a subsidiary of Teck Resources Limited. Teck (55%) and Millrock (45%) are joint venture partners on the project.
Highlights
The 2012 program met its objective of discovering higher grade at the Oxide prospect and identified two new significant zones of gold mineralization at the RPM and West Wing prospects.
-- RPM Prospect: Hole SE12-008 cut an interval averaging 2.07 grams per
tonne gold over 21.94 meters from 82.30 to 104.24 meters occurring
within a 102.11 meter interval averaging 1.04 grams per tonne gold from
26.52 to 128.63 meters. This hole constitutes a new discovery of gold
mineralization on the Estelle project.
-- Oxide Prospect: Hole SE12-004 cut an interval averaging 1.14 grams per
tonne gold over 41.45 meters from 30.79 to 72.24 meters. Gold
mineralization has now been drilled over a 740-meter strike length and
is open in all directions. Grade appears to increase to the southeast
where induced polarization surveys suggest increasing sulfide content.
-- West Wing Prospect: Hole SE12-007 cut an interval averaging 1.01 grams
per tonne gold over 7.01 meters from 50.29 to 57.30 meters. This newly
discovered mineralization appears to be hosted by a shallow dipping
diorite dike or sill. Due to badly broken ground, drilling unfortunately
failed to intersect the lower intrusive contact, which at surface
appears to be more strongly mineralized.
RPM Prospect
Geologic mapping in 2012 at the RPM Prospect has defined a broad zone of alteration in a high-level intrusive magmatic contact zone. The single 2012 drill hole at RPM undercut sheeted quartz veins and stockworks exposed at surface. The hole encountered significant gold mineralization with an intercept of 2.07 g/t Au over 21.94 meters within a 102.11 meter interval averaging 1.04 grams per tonne gold from 26.52 to 128.63 meters. Mineralization remains open in all directions. This new discovery is considered a priority target for follow-up.
Oxide Prospect
At the Oxide Prospect, drilling in 2012 intersected multiple mineralized zones. In three of the holes (SE12-002, 003, 004) the zones appear to occur along a rough northwest trend with veins exhibiting steep, near-vertical dips. Mineralized zones up to 100 meters wide were encountered along this trend which now has a drilled strike length of 740 meters. These holes were designed to follow up the Oxide discovery hole drilled in 2011 (see news release dated November 9, 2011 entitled "Millrock Intersects Intrusion-Related Gold System at Estelle Project, Alaska"). Anomalous gold mineralization was intersected over wide zones in all holes drilled. The grade of mineralization, however, appears to increase to the southeast. Hole SE12-004, the southeastern-most hole drilled, intersected gold mineralization throughout the majority of the hole with a highlight intercept of 41.45 meters grading 1.14 grams gold per tonne. An induced polarization survey conducted in 2012 revealed a chargeability high corresponding with the drilled mineralized trend. The highest chargeability occurs southeast of drill hole SE12-004 providing a vector to possible higher-grade mineralization to the southeast. This overburden covered area, with mineralization open both along strike and down dip, is considered a priority drill target.
West Wing Prospect
Geologic mapping in 2012 at the West Wing Prospect has defined a zone of strong hydrothermal alteration surrounding a diorite sill. At surface, copper, iron and arsenic sulfide mineralization with gold in quartz veins and veinlets appears to increase in intensity toward the lower contact of the sill. Three holes were drilled in an attempt to pierce the sill and its lower contact. However, due to badly broken rock, the light drill rig was incapable of reaching the necessary depth. Nevertheless, anomalous gold values were returned in all three West Wing holes with a high of 1.01 grams per tonne gold over 7.01 meters. Elevated copper values are also present in core from this prospect and range between 1000 and 4580 ppm Cu. Evaluation of the 2012 West Wing exploration data is ongoing. Additional follow-up exploration work is recommended.
The Estelle Project
Geologic features, and extensive surface geochemical anomalies at Estelle, indicate the potential for large, bulk-minable, reduced-intrusion-related or porphyry-style deposits. To date, nine main areas of large-scale anomalous gold and pathfinder element geochemistry (Shoeshine, Shadow, Train, Oxide, RPM, West Wing, Portage, T5 and Stoney) have been identified within the 34,090 hectare Estelle Project. The Estelle Project is adjacent to Kiska Metals Corp.'s Whistler copper-gold deposit and in the same assemblage of rocks that hosts Northern Dynasty/Anglo American's giant Pebble copper-gold-molybdenum-silver deposit. During 2012, Teck fulfilled obligations to earn a 55% interest in the Estelle Project with Millrock retaining a 45% interest. Portions of the property are subject to a 3% NSR royalty payable to third parties.
Excellent progress was achieved in 2012 with follow-up drilling and continued evaluation of the numerous prospects within the project area anticipated for 2013.
Select 2012 Estelle composite intercepts (greater than 0.50 g/t Au) are summarized in the table below.
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Length
Prospect Hole ID From (m) To (m) (m) Au (g/t) Notes
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Oxide SE12-001 Local anomalous Au
values
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Oxide SE12-002 46.33 67.36 21.03 0.65
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SE12-002 75.29 78.33 3.04 0.62
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" 99.67 113.08 13.41 0.69
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includes 99.67 104.24 4.57 1.19
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SE12-002 121.92 136.25 14.33 0.60
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" 146.91 165.20 18.29 0.73
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" 172.82 188.06 15.24 0.53
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includes 172.82 176.94 4.12 1.43
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Oxide SE12-003 Local anomalous Au
values
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Oxide SE12-004 30.79 72.24 41.45 1.14
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" 99.36 101.80 2.44 0.89
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" 105.77 121.01 15.24 0.50
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" 127.41 168.25 40.84 0.57
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includes 146.91 166.73 19.82 0.87
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Oxide Ridge SE12-005 32.61 37.19 4.58 0.69
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" 70.41 76.51 6.10 0.52
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" 79.55 82.60 3.05 0.52
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" 114.60 122.22 7.62 0.75
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" 135.94 138.99 3.05 0.54
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" 157.28 161.85 4.57 0.61
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" 166.42 175.56 9.14 0.58
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" 195.38 203.45 8.07 0.50
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" 204.83 209.09 4.26 0.55
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" 219.76 230.43 10.67 0.51
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West Wing SE12-006 Local anomalous Au
values
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West Wing SE12-007 50.29 61.87 11.58 0.69
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includes 50.29 57.30 7.01 1.01
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SE12-007 75.29 76.51 1.22 1.20
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RPM SE12-008 8.84 128.63 119.79 0.92
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includes 26.52 128.63 102.11 1.04
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includes 82.30 104.24 21.94 2.07
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includes 117.96 125.58 7.62 2.03
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SE12-008 135.79 139.60 3.81 0.65
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" 142.34 148.44 6.10 0.64
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" 162.15 166.73 4.58 0.51
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West Wing SE12-009 48.77 52.43 3.66 0.52
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Note: Listed composites are those averaging greater than 0.50 g/t Au
calculated using a 0.20 g/t Au cutoff with a maximum 3 meters internal
dilution.
Location maps and cross sections for the 2012 Estelle drill holes can be found at this link:
http://www.millrockresources.com/presentations/estelle_presentation/
Notes
True widths for the Oxide prospect drill holes are estimated at 0.707 of the intercept length based on a northwest-trending, steeply-dipping mineralized zone. Currently, there is insufficient information to determine true widths for the RPM and West Wing drill intercepts.
The 2012 exploration drill program and sampling protocol has been reviewed, verified and compiled by Millrock's geologic staff. A rigorous QAQC protocol was used on the project, including insertion of blank, duplicate and standard reference samples per every 20 samples delivered to the assay lab. Drill cores were split lengthwise and half of the core was collected as a sample and placed in a sealed bag. All drill core samples were securely shipped to ALS Chemex Labs in Anchorage, Alaska for preparation, with fire assay and multi-element ICP analyses done at ALS Chemex Labs facility in Reno, Nevada.
The technical information in this news release was reviewed by Gregory Beischer, Millrock's President and Chief Executive Officer, a Qualified Person as defined in NI 43-101.
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 2013 exploration program and budgets and expenditures for Millrock's exploration efforts at the Estelle project. 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
