Millrock and Strategic Partner Purchase Alaska Assets from Raven Gold
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 29, 2015) - Millrock Resources Inc. (TSX VENTURE:MRO) ("Millrock") announces that it has entered into agreements to purchase some of the assets of Raven Gold Alaska LLC ("Raven"), a wholly-owned subsidiary of Corvus Gold Inc. ("Corvus"). The assets are located in or pertain to the Goodpaster Mining District south of Fairbanks, Alaska.
Millrock has purchased the West Pogo (WP) Property from Raven. There are several promising gold occurrences on the property. The claims cover the projection of a favourable structure that passes through the Pogo Mine located three kilometers to the southwest of WP. The Pogo Mine is operated by Sumitomo Metal Mining Co., Ltd. The WP property consists of 58 State of Alaska mining claims. Consideration paid by Millrock for the property is US$20,000 for a 100% interest, with Raven retaining a royalty of 3% Net Smelter Returns ("NSR") on precious metals and 1% NSR on base metals. Millrock may reduce the precious metals royalty to 1% by making payments totaling US$7 million. Per the terms of the Collaboration Agreement signed with a major mining company ("the Major") earlier in 2015, Millrock will offer the Major the opportunity to assign the WP project to Designated Project status subject to an option agreement with pre-determined business terms.
Millrock has also purchased from Raven, with funding from its strategic partner, an extensive, proprietary database of geological information. The database was created through years of exploration effort by Anglogold-Ashanti and International Tower Hill Mines in the 1990s and early 2000s and contains information from throughout Alaska's Goodpaster Mining District and the Pogo Mine area. Included in the information are geochemical results for thousands of stream sediment, soil, rock and vegetation samples, airborne geophysical surveys, structural and remote sensing analyses and project generation reports. It is estimated that data represents in excess of US$5 million in exploration work. The purchase price for the database is US$100,000. A royalty of 1% NSR in favour of Raven will be payable for any claims staked by Millrock within a defined area of interest in the coming five years. The royalty may be reduced to 0.5% by payment of US$2.0 million.
Corvus has also granted Millrock a Right of First Refusal to acquire the LMS project under agreed upon terms until September 1, 2015. This project is also located in the Goodpaster Mining District. A description of the project is available on the Corvus website. A high-angle, mineralized structure that may be a feeder zone is postulated and forms a sound exploration target for drill testing. Millrock's qualified person has not verified the information in the Corvus project description.
Philip St. George, Chief Exploration Officer of Millrock, stated, "With the acquisition of the Anglogold-Ashanti database our company will have the most comprehensive store of geological knowledge on this district. We will have a distinct competitive advantage for generating new grass-roots exploration targets for high-grade gold deposits with our strategic partner."
To view the initial announcement of the Collaboration Agreement click here.
The technical information within this document has been reviewed and approved by Gregory A. Beischer, President & CEO of Millrock. Mr. Beischer is a Qualified Person ("QP") 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 metallic mineral deposits in mineral-rich Alaska, southwest USA, and Mexico, 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 taken on by most exploration companies. Millrock currently has twenty-two active exploration projects, eight gold, copper and zinc properties in Alaska, a uranium project in New Mexico, and twelve gold, silver and copper projects in Mexico. Funding for drilling at Millrock's exploration projects primarily comes from its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: First Quantum, Teck, Kinross, Vale, Inmet and Altius.
ON BEHALF OF THE BOARD
"Gregory Beischer"
Gregory Beischer, President & CEO
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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Contact
Millrock Resources Inc.
Gregory A. Beischer
(604) 638-3164
800 - 789 West Pender Street
www.millrockresources.com