Millrock Commences Drilling at Estelle Gold Property, Alaska
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/02/11 -- Millrock Resources Inc. (TSX VENTURE: MRO) ('Millrock' or the 'Company') announced today it has commenced drilling at its Estelle gold property northwest of Anchorage, Alaska. The work is being managed by Millrock on behalf of Teck American Incorporated ('Teck American'), a subsidiary of Teck Resources Limited ('Teck'), which has the option to earn up to a 65% interest in the project from Millrock.
The first round of drilling is planned to consist of six holes totaling approximately 2,500 m. Two holes will be drilled at the Oxide Ridge prospect, two holes at the Shoeshine prospect and one hole at each of the Shadow and Train prospects. All three prospects, Shoeshine, Shadow and Train, may be part of the same mineralizing system. Geochemical sampling done by Millrock and by Teck American in prior years indicates an abundance of gold mineralization in quartz veinlets and stockworks over a circular area measuring at least one km in diameter area. Historic exploration work at Shadow by Teck American includes a drill intersection of 3.0 g/t gold over 29.6 m and a chip sample grading 18.0 g/t gold over 9.9 m.
Along with the drilling program, Millrock's exploration team is further evaluating and sampling a variety of other potential drill targets on the property. Excellent progress has been achieved during the first weeks of the program.
Commenting on the Estelle exploration program, Company President & CEO Gregory Beischer stated, 'Over the past two field seasons Millrock has performed systematic surface exploration to arrive at this selection of high-quality drill targets. We look forward to testing our theories with this first round of drilling. Meanwhile, our exploration team continues to generate new and exciting targets across the property for testing in future years.'
The agreement between Millrock and Teck American grants two options, and was initially announced on February 14, 2011 (found here: http://www.millrockresources.com/news/millrock_announces_partner_elects_to_proceed_with_first_option_at_este/). The first option grants Teck American the right to earn an initial 55% interest in the project by incurring exploration expenditures totaling US$3.6 million. Completion of the planned 2011 exploration program, along with expenses already incurred, will result in Teck American earning its initial interest by the end of 2011, one year ahead of schedule. Upon meeting the requirements of the first option, Teck American would then have the right to proceed to the second option that would allow it to earn an additional 10% interest, for a total 65% interest by incurring an additional US$5 million in exploration expenditures and making cash payments to Millrock of US$400,000.
Geologic features, and extensive surface geochemical anomalies at Estelle, indicate the potential for large, bulk-minable, reduced-intrusion-related or porphyry-style deposits. Six main zones of large-scale anomalous gold and pathfinder element geochemistry have been identified over the past two years: Shoeshine, Shadow, Train, 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, hornfelsed sediments with anomalous gold indicate the potential for an auriferous intrusion at a shallow level. The Stoney prospect is a high-grade, polymetallic vein occurrence located near a strong, circular magnetic high pointing to the possibility of nearby porphyry mineralization.
Presently, Millrock owns a 100% interest in the property. Portions of the property are subject to third-party royalties. 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.
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$15 million in 2011. Business partners of Millrock include some of the leading names in the mining industry: Kinross, Teck, Vale, Inmet and Altius, as well as junior explorers Ryan Gold, Brixton Metals and 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 2011 exploration program and budgets 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