Millrock Commences Drilling Program at Estelle Gold Project, Alaska
VANCOUVER, BRITISH COLUMBIA, July 9, 2012 - Millrock Resources Inc. (MRO - TSX:V) ("Millrock" or the "Company") announced today that drilling has commenced at the Estelle Gold Project in Alaska. The project is a joint venture between Millrock (45%) and Teck American Incorporated ("Teck") (55%), a subsidiary of Teck Resources Limited. The Estelle gold project is located northwest of Anchorage, Alaska.
The drilling program now underway is planned to consist of seven holes totaling approximately 1,500 m. Five of the planned holes will be drilled at the Oxide Ridge occurrence where Millrock intersected a thick, low grade gold intersection during its 2011 drilling program. At this location, Millrock previously discovered a multi-element soil geochemical anomaly in a roughly circular area measuring two km in diameter. As announced on November 9, 2011, hole SE-001 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 0.43 g/t Au over 365.3 m. Two more holes will be used to test geochemical anomalies in pyritic rocks on the margin of an intrusion at the RPM showing located at the south end of the claim block.
The target sought at Estelle is a gold deposit of the Intrusion-Related type. Geologic features, and extensive surface geochemical anomalies indicate the potential for large, bulk-minable, deposits. Four main zones of large-scale anomalous gold and pathfinder element geochemistry have been identified over the past three years: Shoeshine, Oxide Ridge, RPM and Stoney. At the Shoeshine and Oxide Ridge prospects surface mineralization is spatially associated with porphyritic intrusive rocks, quartz stockworks and hydrothermal breccias. At RPM rusty, pyritic hornfels sediments with anomalous gold indicate a possible auriferous intrusion at a shallow burial level. The Stoney prospect is a high-grade, polymetallic vein occurrence.
Many of the claims that comprise the property are subject to a 3.0% NSR royalty payable to third parties. The claims are located approximately 160 km northwest of Anchorage, Alaska. The property is adjacent to Kiska Metals Corp.'s Whistler copper-gold deposit. Estelle is located in the Kahiltna Terrane, an assemblage of rocks that hosts Northern Dynasty/Anglo American's giant Pebble copper-gold-molybdenum-silver deposit.
Millrock's 45% share of the 2012 exploration program is estimated to cost approximately US$800,000. Under the terms of a loan agreement with Teck, Millrock will borrow up to the entire amount necessary to cover its share of the planned program costs. The loan, which bears a 6% interest rate, may be repaid by December 31, 2012, and if Millrock does so, it will retain its 45% interest. Millrock may elect not to repay the loan, and if it does not, its interest in the Estelle project will be reduced in accordance with the dilution formula contained in the joint venture agreement. If the planned program is carried out, and Millrock does not repay the loan, its equity interest in the project would be reduced to approximately 35%.
The technical information in this news release was reviewed by Gregory Beischer, Millrock's President and CEO, 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$10 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
Posted: July 9, 2012