Millrock Clarifies Previous Technical Disclosure
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/01/13 -- Millrock Resources Inc. (TSX VENTURE: MRO) ("the Company") reports that as a result of a review by the BC Securities Commission, the Company is issuing this news release to clarify previous technical disclosure.
Qualified Person: The Company did not include the name of the qualified person who approved, prepared or supervised the preparation of the technical information appearing in previous versions of the Company's website and in certain materials distributed by the Company, and the qualified person's relationship to the Company, as required by section 3.1 of NI 43-101. The Company is correcting this omission.
Non-Compliant Historical Estimates: In previous versions of its website and in other materials, the Company has used the terms "non 43-101 resource", "resource potential" and "resource" to describe historical estimates in relation to its Stellar project (specifically to the "Zackly Skarn deposit" situated on the Stellar claims) and the Bluff project, Alaska, which is contrary to section 2.2 (a) and 2.3(1)(a) of NI 43-101. Specifically the noted references do not meet the classification categories as defined in "CIM Definition Standards on Mineral Resources and Mineral Reserves". The Company also disclosed historical estimates for the Stellar and Bluff projects without providing all of the necessary additional information required by section 2.4 of NI 43-101. Specifically, some of the Company's materials did not mention the source and date of the historical estimate, comment on the relevance and reliability of the historical estimate, provide a statement on historical estimate resource categories used by the historical exploration companies and provide an explanation as to the difference with the CIM categories, and in the case of the Zackly Skarn deposit, reference and comparison to a more recent historical estimate. The Company retracts any previous disclosures about the Stellar and Bluff project historical estimates and issues the following restatement:
For the Stellar project, which is host to the Zackly Skarn deposit, there are two historical resource estimates reported by prior exploration operators for the Zackly "Main Skarn", one of three known mineralized skarn zones located along the Zackly skarn trend. The historical estimates are shown in the tables below. The historical estimates quoted from the 1987 and 1982 reports are for historical purposes only and are not compliant with CIM definition standards for Mineral Resources and Mineral Reserves, as defined under NI 43-101. The historical reserve estimates were prepared prior to the implementation of NI 43-101 and use terminology different from and not compliant with current reporting standards, including the terms "indicated and inferred reserves" which incorrectly implies economic viability. Reliability of the historical estimates reported in 1987 and 1982 is suspect based on poor recovery of the diamond core drilling and also the rotary drilling between 1981 and 1987 resulting in significant core and sample loss within areas of mineralization, together with selective sampling, wide drill spacing between sections and the lack of a QA/QC assay protocol (Eden, K. A., 2013, Stellar Property, Valdez Creek Mining District, South-Central Alaska: NI 43-101 Technical Report, January 8, 2013, 113 p.). Though considered relevant by the Company, these historical estimates are not considered reliable. Dr. Eden, a qualified person as defined in NI 43-101, has determined that it is not possible to use the historical estimates as current mineral resources or mineral reserves and the Company is therefore not treating the historical estimates as current mineral resources or mineral reserves. He has determined that it will be necessary to re-drill the holes to verify the historical estimates and to upgrade the estimate to resources that are compliant with NI 43-101, as described in Dr. Eden's technical report which was filed on SEDAR (www. Sedar.com) on January 8, 2013. Dr. Eden is an independent consultant to the Company.
Zackly "Main Skarn": 1987 Reserves(i)
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Cu
Short Au Au (million Ag Ag
Category Tons (oz/ton) (ounces) Cu % lbs) (oz/ton) (ounces)
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None 1,407,000 0.132 185,724 2.19 61.6 0.83 1,167,810
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Zackly "Main Skarn": 1982 Reserves(ii)
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Cu
Short Au Au (million Ag Ag
Category Tons (oz/ton) (ounces) Cu % lbs) (oz/ton) (ounces)
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Indicated
Reserves 1,089,000 0.176 191,664 2.69 58.6 0.956 1,041,084
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Inferred
Reserves 155,000 0.176 27,280 2.69 8.3 0.956 148,180
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(i) From Resource Associates of Alaska, 1987, 1987 Final Report: Exploration Results from Zackly Gold-Copper Skarn Prospect Alaska Range, Alaska Volume I, 141 p. This study utilized a modified polygonal method based on data from core drill holes, reverse circulation drill holes and surface trenches. Calculations were determined using a drill hole radius of influence of 200 feet and a 0.05 opt Au cutoff. In 1986 metallic screen assaying methods were employed on available reject samples from the 1982 but not the 1981 Zackly drilling campaigns. A reference to a re-analysis of the 1982 estimate using these partial data is included in RAA, 1986, Zackly 1986 Report, Volume I, November, 1986, 38 p. The report introduction refers to "an indicated reserve of about 1 million tons of 0.19 opt gold and 2.7 percent copper". The metallic screen data were not utilized in the 1987 study which constitutes the most recent reserve/resource study known to the Company.
(ii) From UNC Teton Exploration Drilling, 1982, Geology of the Zackly Gold-Copper Skarn Prospect Alaska Range, Alaska Final Report 1982, 281 p. The study utilized a modified polygonal method based on data from core drill holes and surface trenches. The radius of influence for drill holes was half way to adjoining mineralization or 200 feet around an intercept. Currently, the Company has access to the complete 1982 study only and was able to confirm and validate the data used. As a result, the Company previously elected to report results from the 1982 report only.
For the Bluff Project, there is one historical estimate that was presented in a historical report using the term grade/tonnage potential which is:
Bluff 1991 Grade/Tonnage Potential
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Au Au
(oz per (grams per
Area Short Tons short ton) tonne) Ounces Au
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Daniels Creek 3,000,000 0.1 3.43 300,000
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Saddle Area 1,500,000 0.11 3.77 165,000
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Koyana Creek 2,000,000 0.02 0.69 40,000
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Total 505,000
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The "grade/tonnage potential" estimates in the table above for Bluff were excerpted from a report entitled BHP-Utah International, 1991, 1990 Bluff Gold Exploration Summary Report Part 1, Overview of Exploration Results 1986-1990 - Bluff Project Area Seward Peninsula, Alaska, BHP-Utah International Company Report, 5 p. The study utilized drill hole cross sections and best estimates for true width of mineralized zones. Defined mineralized intervals were projected between sections along geologic trends. The procedures used are also noted in Stevens, D. L., 2009, Bluff Gold Prospect, Seward Peninsula, Western Alaska, National Instrument 43-101 Technical Report, 21 p.
The grade/tonnage historical estimate for Bluff is not compliant with CIM definition standards for Mineral Resources and Mineral Reserves, as defined under NI 43-101. The historical estimates were prepared prior to the implementation of NI 43-101 and use terminology not compliant with current reporting standards. The term "grade/tonnage potential" implies an inferred resource but is not correlative with CIM definitions and should not be taken as such. Some detailed information, such as the number of drill holes used in the estimation, is unavailable. In addition, little is known about the reliability of the BHP-Utah International drill program which did not appear to employ a QA/QC sample program. Though believed to be relevant, for the reasons cited, the Company does not consider the Bluff historical estimate to be reliable. Limited drilling by the Company in 2008 and 2010 confirmed the presence of gold mineralization at Bluff, however, the Company did not calculate a new resource estimate. The historical estimate made by BHP-UTAH International in 1991 remains as the most recent estimate known to the Company. A qualified person, Dr. Donald L. Stevens, an independent consultant to the company, has determined that it is not possible to classify the historical estimates as current mineral resources or mineral reserves (Stevens, D.L., 2009, Bluff Gold Prospect, Seward Peninsula, Alaska: National Instrument 43-101 Technical Report, June 5, 2009, 21 p. filed on SEDAR (www. Sedar.com) on October 1, 2009). Therefore the Company is not treating the historical estimate as current mineral resources or mineral reserves.
Non-Compliant Disclosure of Mineral Resources - Other Deposits: In certain materials the Company also discloses non-compliant resources for the Pebble, Whistler, Donlin Creek, Pogo and Fort Knox deposits, Alaska and the Safford and Resolution deposits, Arizona. The Company wishes to clarify that it does not have any ownership interest in these deposits and it does not imply that it will be successful in discovering mineral deposits of similar tonnage and grade. Additionally, in previous versions of its website and other materials, the Company did not disclose each category of mineral resources or mineral reserves for the Pebble project separately (contrary to section 2.2(b) of NI 43-101), added inferred mineral resources to other categories (contrary to section 2.2(c) of NI 43-101), and disclosed resources solely in the form of metal content (contrary to section 2.2(d) of NI 43-101). The Company retracts the statements it has made that are contrary to NI 43-101.
Gregory A. Beischer, a director of the Company and its president and chief executive officer, is the qualified person (as defined in NI 43-101) who approved the technical information in this news release.
ON BEHALF OF THE BOARD
Gregory Beischer, President & CEO
"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
