Millrock Expands Into Stewart Golden Triangle District, British Columbia
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 14, 2015) - Millrock Resources Inc. (TSX VENTURE:MRO) ("Millrock") announces that it has entered into a series of agreements to consolidate three major land packages in the "Golden Triangle" area northeast of the town of Stewart, British Columbia. The agreements will be completed upon acceptance by the TSX Venture Exchange.
The three projects, Todd Creek, Poly and Oweegee Dome, are prospective for gold and polymetallic base metal deposits and cover known mineral occurrences distributed along favourable structures in the lower Hazelton Group rocks that are known to host much of the metal endowment of the camp. The Todd Creek property adjoins the southern boundary of the claim block covering the Brucejack Property, which is owned by Pretivm Resources Inc. The Poly project is located 10 kilometers southeast of Todd Creek and is bisected by Highway 37A and the 138 kilovolt Stewart powerline. The Oweegee Dome property adjoins the eastern boundaries of Pretivm's Brucejack property and of the KSM property owned by Seabridge Gold Inc. Highway 37 and the recently constructed Northwest Transmission Line transect the western tenures of the Oweegee Dome property. In total, the properties cover an area of approximately 60,000 hectares (600 square km).
Millrock President & CEO Gregory Beischer commented, "It has taken substantial effort, coordination and cooperation by all parties to execute eight different agreements simultaneously with six different claim owners, royalty owners and creditors. However, the result is that we have assembled three large, cohesive mining claim blocks covering highly prospective lands in a very attractive and active exploration and mine development district. The Golden Triangle is truly one of the world's most prolific and best-mineralized slices of the earth's crust. By merging our exploration approach with the institutional knowledge and local operational ability of Geofine Exploration Consultants, we intend to assert ourselves as the premier generative exploration company in the district. These three main projects will be a great start. Millrock will advance these projects but will be looking to create funding partnerships with other companies in strict keeping with our joint venture business model."
Todd Creek
The newly consolidated Todd Creek claim block was acquired in part by outright purchase, option agreement and royalty buyout. Consideration to be paid to each owner entity is as follows:
- For a 100% royalty-free interest to the Todd Creek Joint Venture tenures - $100,000 cash and 888,889 Millrock shares distributed on a pro-rata basis according to joint venture ownership (Orestone Mining Corp. - 51%, Goldeye Explorations Ltd. - 24.5%, and Revelo Resources Corp. - 24.5%);
- To Geofine Exploration Consultants Ltd. ("GFX") - 44,444 Millrock shares for a 100% interest in the Todd GFX tenures and 111,000 Millrock shares and $25,000 to eliminate a 2.5% NSR royalty; and
- To 802213 Alberta Ltd. - $28,000 as the initial payment for an option to purchase agreement in which Millrock can make a total of $403,000 in payments to earn a 100% interest in the Todd Funk tenures with a 2% NSR royalty that can be purchased by Millrock for $1 million.
The 20,276 hectare Todd Creek property has excellent demonstrated potential for volcanogenic, poly-metallic, precious-metals-enriched, massive sulfide deposits similar to the rich former-producing Eskay Creek Mine located 60 kilometers to the northwest. The main attributes include:
- Favourable Lower Hazelton Group stratigraphy;
- A gold deposit (South Zone deposit) containing a historic resource of 207,000 tons grading 5.85 g/t gold reported by Hemlo Gold Mines Inc in their 1988 Annual Report - the deposit is open for expansion by further drilling;
- High-grade intercepts from prior drilling such as hole NTC-88-22 at the Fall Creek zone, which was reported to grade 14.5 g/t gold and 2.06% copper over 5.95 meters by Noranda Exploration Company in 1988;
- Extensive hydrothermal alteration zones;
- Numerous showings of gold, copper and other valuable metals, geophysical-geochemical anomalies and drill-ready targets over an eight kilometer strike length;
- Rapidly receding glacial cover that is exposing new mineralized outcrops each year;
- Very little exploration done on the property since 2008; and
- An exploration permit in place for 2016.
** Note: The South Zone resource estimate was produced prior to the institution of NI43-101 guidelines for reporting mineral resources and the reported resource does not match modern mineral resource estimate categories. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and Millrock cannot presently verify the relevance or reliability of the historical estimate. Millrock is not treating the historical estimate as current mineral resources or mineral reserves. Re-sampling and re-logging of existing drill cores and confirmatory and infill drilling from surface will be required to determine the significance of the historical resource. The qualified person has not verified the mineral resource data reported by Hemlo Gold Mines Inc. Similarly, the qualified person has not reviewed the drill core or verified the core sampling results used by Noranda Exploration Company for the reported Fall Creek intersection, and it is not known if the reported intersection represents a true width.
Poly
The newly-consolidated Poly property, which covers an area of approximately 7,300 hectares, was acquired through outright purchase, royalty buyout and option agreement assignment. The consideration payable to each owner entity is:
- To GFX - 666,666 Millrock shares for a 100% interest, $25,000 and 111,111 shares for a buyout of an existing royalty on the GFX tenures, and reimbursement of $10,000 for recently completed assessment work; and
- To Dynasty Capital - 133,000 Millrock shares for a 100% royalty-free interest in the Mill tenures.
At this property, potential for two target types are indicated: volcanogenic massive sulfide and epithermal gold deposits. The property has the following positive attributes:
- Numerous multi-element geochemical anomalies and mineral showings;
- Eight kilometer strike of fault structure that localizes mineralization;
- Numerous untested geophysical anomalies;
- A large feeder zone identified;
- Very rapid glacial melting revealing mineralization that has not been seen before; and
- An exploration permit in place for 2016.
Oweegee Dome
The Oweegee Dome project, which covers an area of approximately 32,000 hectares, is an assembly of claims purchased, optioned and staked, and with royalties bought out or limited. Consideration payable is:
- To GFX - 666,666 Millrock shares for a 100% interest in the GFX Stewart tenures, and 111,000 Millrock shares and $25,000 to eliminate a 2.5% NSR royalty. In addition Millrock will reimburse GFX $60,000 for recently completed assessment work.
- To 802213 Alberta Ltd. - $35,000 to satisfy an option to purchase a 100% interest held by GFX. GFX will in turn assign the optioned Funk Stewart tenures to Millrock at no additional cost. 802213 Alberta Ltd. will retain a 2% NSR royalty that may be bought out by Millrock paying $2 million.
At Oweegee Dome there is potential for gold vein deposits, porphyry copper-gold deposits and volcanogenic massive sulfides. The project has the following attributes:
- The Oweegee Dome is an inlier of the favourable Hazelton Group rocks and the property position covers the entire structure and sequence;
- The British Columbia Geological Survey has recently indicated that the favourable geological and structural environment for the formation of major metal deposits proximal to the Triassic-Jurassic contact in Hazelton Group rocks has been delineated on the northwest area of the project (Nelson and Kyba, 2014);
- The property is adjacent to Pretivm's Brucejack project and Seabridge's KSM project -Millrock's new project is in a very similar geological setting; and
- There are numerous polymetallic mineral occurrences and untested geophysical targets.
Note: The total payable by Millrock to the various parties upon TSX Venture Exchange acceptance for all the agreements is $313,000 and 2,732,998 shares. All Millrock shares issued to the various owners in the purchase agreements are subject to a contractual hold period of 16 months from the effective date of the agreements.
The technical information within this document has been reviewed and approved by Gregory A. Beischer, President, CEO and a director of Millrock Resources. Mr. Beischer is 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 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 thirty-one active exploration projects, nine gold, copper and zinc properties in Alaska, three gold / polymetallic projects in British Columbia, a uranium project in New Mexico, and eighteen 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, 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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