Millrock holds gold and copper deposits in Alaska and Arizona. The company currently has twelve active exploration projects, consisting of eight gold-copper properties in Alaska, and four porphyry copper prospects in Arizona.

Monsoon is located southeast of the town of Safford, and south of the Morenzi mine in southeastern Arizona. The project consists of a large block of Arizona State Exploration permits.

Millrock said it has identified an area prospective for porphyry copper deposits. Regional geochemical surveys, geophysical surveys and geological modeling have led Millrock to believe there is "potential for discovery of valuable porphyry copper deposits hidden beneath overburden on the exploration permits."

Monsoon is positioned along the trend of the prolific Safford deposits, which are being actively developed by Freeport McMoran Copper & Gold.

Under the terms of the agreement announced Thursday, Inmet may earn a 70 percent interest in the project by incurring exploration expenditures totalling $4.5 million, and paying Millrock $400,000 by February 1, 2018.

If this option is exercised, a joint venture will form, and additional exploration and development costs will be shared by Millrock and Inmet on a pro-rata basis.

In the event that Millrock or Inmet dilutes to less than a 10 percent interest, an automatic conversion to a 2 percent net smelter return royalty will occur, Millrock said.

Millrock acquired the exploration permits through an agreement with private individual Michael Schaefer. The company can also maintain an option to purchase from the owner a 100 percent interest in the permits, by paying a total of $400,000 and issuing 500,000 Millrock common shares over a period of six years.

If all option payments are made, the property can be purchased for a total of $1.0 million.

A further $1.0 million will be paid to the owner in the event that Millrock prepares a report that describes an indicated mineral resource of 1,500,000 tons or more of contained copper on the property.

The cash payments to Schaefer will now be borne by Inmet, Millrock said, until such time as a joint venture is formed between Millrock and Inmet, after which cash payments will be made on a pro-rata basis.

Millrock will remain solely responsible for any share payments, it added.

The deal between Millrock and Inmet is subject to approval by the TSX Venture Exchange.

In late April, Millrock reported drill results from its San Jose copper project in the Safford District of southeast Arizona, and said it agreed on another drilling program at the site.

The four holes completed in this program were drilled in the northern part of Millrock’s San Jose property, and targeted anomalies detected by airborne geophysical methods.

The company said that while weak mineralization was seen in one hole, porphyry-style alteration was found in two other holes, with geological observations indicating proximity to a porphyry deposit.

Inmet Mining has the option to earn a 70 percent interest in the San Jose project, with funding for the four holes drilled provided by Inment.

Earlier that month, Millrock also confirmed programs and budgets for two drilling programs in Alaska in 2012.

These projects are the subject of potential joint venture agreements with Kinross Gold (NYSE:KGC), and both are presently still in the option phase.

Work will be funded by Kinross and carried out by Millrock, and under the terms of the agreements, Kinross may earn up to a 75 percent interest in these projects.

With funding primarily coming from its joint venture partners, Millrock plans to carry out exploration programs with a total value of more than $10 million in 2012.

Shares for Millrock were up 4.26 percent at 25 cents.

The four holes completed in the most recent program were drilled in the northern part of Millrock’s San Jose property, and targeted anomalies detected by airborne geophysical methods.

The company said that while weak mineralization was seen in one hole, porphyry-style alteration was found in two other holes, with geological observations indicating proximity to a porphyry deposit.

Inmet Mining Corp (TSE:IMN) has the option to earn a 70 percent interest in the project, with funding for the four holes drilled provided by Inment.

Millrock and Inmet also said Tuesday that they will proceed with an additional drill program on the project later this year.

Highlights of the results reported today include hole J-1004, which Millrock said traversed 460 metres of intrusive dacite and tonalite, showing "intense phyllic alteration", along with local zones of anomalous copper mineralization.

This hole was drilled in part as a deep test of the San Jose deposit in an area highlighted by a conductive geophysical feature.

Meanwhile, hole J-1007, which was drilled 2,800 metres northeast of the San Jose deposit on the flank of another large geophysical anomaly, intersected phyllic and propylitic alteration with the development of pyrite, despite no significant copper values.

Millrock said that the company and partner Inmet have agreed to carry out further drilling to test magnetic anomalies nearby known porphyry mineralization and anomalous geochemical conditions.

This program will consist of four holes totalling approximately 4,300 metres of drilling, with one hole to be drilled on the adjacent Dry Mountain claim block, which is also subject to the agreement with Inmet.

Additional geological and geochemical work will be carried out prior to drilling, which is expected to start in the summer.

Millrock Resources currently has twelve active exploration projects, including eight gold-copper properties in Alaska, and four porphyry copper prospects in Arizona.  With funding primarily coming from its joint venture partners, the company plans to carry out exploration programs of more than US$10 million in 2012.

The joint venture partners have planned a drill program that is slated to begin in July at the Estelle gold project, of seven holes for a total of up to 1,500 metres.

Millrock said the target it is seeking at the Estelle project is a gold deposit of the intrusion-related type. 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.

Four main zones of large-scale anomalous gold and pathfinder element geochemistry were identified over the past three years: Shoeshine, Oxide Ridge, RPM and Stoney.

Five of the planned holes this year will be drilled at the Oxide Ridge occurrence where Millrock found a thick, low grade gold intersection during last year’s drill program.

At this location, Millrock previously discovered a multi-element soil geochemical anomaly in a roughly circular area measuring two kilometres in diameter.

Millrock said mineralization was found from depths of 31.79 metres to 397.06 metres and returned an average of 0.43 grams per tonne gold over 365.27 metres.

Two more holes will be used to test geochemical anomalies in pyritic rocks on the margin of an intrusion at the RPM zone, located at the south end of the claim block, the company said.

A number of the claims that make up the property have a three percent royalty payable to third parties, the company said.

Millrock’s share of the 2012 exploration program is estimated to cost US$800,000. The company said it will borrow the entire amount from Teck to cover the costs.

The loan, which has a six percent interest rate, must be repaid by December 31. If the junior miner does not repay the loan, its 45 percent stake will be reduced to about 35 percent.

Last Friday, Millrock Resources said a hole being drilled on the Galiuro property in Arizona was abandoned prior to reaching targeted depth, after Vale Exploration kyboshed an option agreement.

Vale Exploration, which was funding the work, decided to terminate its option agreement it signed on March 2, 2009.

The Galiuro project is made up of 366 federal mining claims and 18 Arizona State prospective permits covering about 6,800-hectares, and is located near the San Manuel and copper district in southeastern Arizona.

Millrock currently has 12 active exploration projects, eight gold-copper properties in Alaska, and four porphyry copper prospects in Arizona.

Hole SE-001 was drilled to a depth of 457.8 metres to test an induced polarization chargeability anomaly, overlain by a coincident gold-arsenic soil geochemical anomaly, the company said.

Millrock had previously discovered gold mineralization at two locations, each about 1.5 kilometres away from the drill hole collar.

From 10.18 metres to 460.86 metres (450.68 metres) the hole returned a weighted average of 0.38 grams per tonne(g/t) of gold (171 gram-meters).  Most of the mineralization was found from 31.79 metres to 397.06 metres and returned 0.43 g/t gold over 365.27 (157 gram-meters).

This hole, SE11-001, intercepted 139.84 metres at 0.56 g/t gold, with other notable intercepts including 1.13 g/t gold over 13.05 metres, and 3.08 g/t gold over 0.76 metres.

"We have intersected intrusion-related gold mineralization over a significant interval that includes some higher grade intercepts. The challenge now is to find the center of the system that has the grade needed for an economic deposit," said the company's chief exploration officer, Philip St. George.

The work at the property is being managed by Millrock on behalf of a subsidiary of Teck Resources (TSE:TCK.B), which has the option to earn up to a 65 percent interest in the project from Millrock by funding exploration expenditures and making cash payments.

Three further holes were drilled on the project to test the Shoeshine, Shadow and Discovery prospects, which are located approximately 18 kilometres to the south of Oxide Ridge.

The company said that along with this drilling, further exploration yielded new gold prospects that could be the subject of drilling in 2012.

The Estelle property is adjacent to Kiska Metals' Whistler copper-gold deposit. Geologic features, and extensive surface geochemical anomalies at Estelle, indicate the potential for large, bulk-minable, deposits. Six main zones of large-scale anomalous gold and pathfinder element geochemistry have been identified over the past two years at Shoeshine, Shadow, Train, Oxide Ridge, RPM and Stoney.

Millrock creates value by identifying large ore bodies that can be ventured to major mining companies, and seeks to emulate Altius Minerals (TSE:ALS). Altius holds 9% of Millrock, and is a very successful Project Generator Company that is currently capitalized at around $310 million. 

The Company is led by Gregory Beischer, who is President and CEO and is a seasoned explorationist who was previously with Inco, now owned by Vale (NYSE:VALE), and with whom Millrock maintains exploration interests. He was also with the Bristol Bay Native Corporation, which is one of twelve Native owned regional corporations created in Alaska to manage local landholdings and investments on behalf of the local inhabitants, and currently serves on the Alaska Minerals Commission, and was past President of the Alaska Miner’s Association. 

Philip St. George serves as Chief Exploration Officer, and is an exploration geologist who was the first to recognize the porphyry mineralization at the Pebble Deposit in Alaska, and led the Cominco team that drilled out the initial 500 million tonnes of gold, copper and molybdenum mineralization. Teck owns Cominco and maintains exploration interests with Millrock. He was also Vice-President of Exploration for Novagold Resources from 1998 to 2003, and helped build that company’s project portfolio. 

The Company’s most recent Strategic Alliance was announced in mid-October and is with Vale, which is the second largest mining company in the world, and will seek large scale copper, gold and porphyry deposits in target zones of Alaska that will be generated by Millrock. 

Vale will provide funding of US$1.0 million in the first year, and holds an option for an additional US$1 million in the second year. This will underwrite early stage exploration that may be subject to a further option agreement providing $3.5 million over 3 years, allowing Vale to establish a 65/35 Joint Venture in each specific project.

Crescent Resources (CVE:CRC) holds an option to purchase a 100% interest over the Uncle Sam Project, covering 31 square kilometres, located 75 kilometres southeast of Fairbanks, and lying within a world class gold belt. Crescent has agreed to spend $2.5 million over 3 years, and issued 1,583,281 shares to Millrock, and may commit a total of 18% of its issued shares to Millrock to maintain that interest at the end of 2011.  

Drilling is focused at Lone Tree where a shallow gold zone measuring 500 metres by 250 metres has been drill defined. Drilling highlights include 19.22 metres at 2.03 g/t Au, and 6.8 metres at 1.01 g/t Au, within a gold-in-soil anomaly that has been outlined over a strike of 4,000 metres and width of 1,000 metres.

A second prospect know as Wolf lies 2,000 metres along strike from the Naosi Prospect, which was recently discovered by  Sumitomo Metal Mining, where drilling intersected 7.92 metres at 7.8 g/t Au and 19.7 g/t Ag. The partners have already reported an intersection at Wolf that assayed 4.42 g/t Au over 11.4 metres, and plan more drilling across this highly prospective target. 

Teck Resources (TSE:TCK.A,TCK.B) has incurred almost US$3.6 million in exploration expenditures and will earn an initial 55% interest in the Estelle Project. Teck can increase this interest to 65% by expending an additional US$5 million in exploration costs, and making a cash payment of US$400,000 to Millrock.

Six main zones of large-scale anomalous gold and pathfinder element geochemistry have been identified over the past two years at Shoeshine, Shadow, Train, Oxide Ridge, RPM and Stoney.

Four drill holes for 1,500 metres were recently completed along various targets with assay results awaited by the partners. A drill hole at Shadow deepened a historic hole completed by Cominco in the 1980’s that intersected 3.01 g/t Au over 29.6 metres and ended in mineralization at a depth of 100 metres. Surface work also identified several previously unknown mineralized zones for future exploration. 

Kinross Gold (TSE:K) is earning in on the Humble Project in southwest Alaska. Surface geochemical sampling has been completed over the entire land package, but early drilling has been problematic. 

Millrock expended approximately $1 million for regional project generation in Alaska during 2011, and staked 7 new properties. The Fortymile Project located at the Yukon border, has drill ready targets and is also available for joint venture.

Vale has the option to earn a 60% interest in the Galiuro Project in southeastern Arizona through exploration expenditures totaling US$3.5 million and payments totaling US$850,000. The earn-in agreement is in its second year, and Vale has expended approximately US$2.5 million on the property to date, and may earn an additional 10% interest, for a total of 70%, by funding a feasibility study. 

The target at the Galiuro property is a large porphyry copper and gold deposit hidden beneath alluvium and Tertiary volcanic cover, and is situated at the intersection of the Resolution, San Manuel and Kalamazoo porphyry copper trends

The partners are seeking deep porphyries, with recent drilling intercepting trace amounts of copper and anomalous molybdenum values along with the associated alteration package in geologically permissive rocks suggests that a porphyry copper deposit is nearby. 

A third phase of drilling is expected to get underway in the fall of 2011 at Fourmile, which is a circular magnetic feature that is ringed by a strong conductive zone that is identified by a ZTEM airborne geophysical survey. Intense argillic alteration is known from rock exposures and prior drilling on the west side of the structure.

Inmet Mining Corp (TSX:IMN) may earn a 70% interest in the San Jose and Dry Mountains Project by incurring US$4 million in exploration expenditure and making option payments of US$300,000.  

The partners are planning to drill at least 3 holes for up to 5,000 metres, which will test coincident ZTEM anomalies with overlying geochemical anomalies. The targets may represent buried porphyry copper deposits with molybdenum and gold credits, and are located directly along trend of the Safford copper deposits being developed by Freeport McMoran (NYSE:FCX). The nearby Safford and Morenci porphyry trends host over 10 billion tonnes of historic copper production and future reserves and resources. 

Dry Mountain is located 20 kilometres to the southeast of San Jose on the Morenci Trend, and displays a geochemical anomaly carrying strong copper and molybdenum values measuring 10 kilometres in diameter, and carries coincident ZTEM-Magnetic signatures.

Millrock acquired the Rainville Project, located in southeastern Arizona, which is on an extension of the Safford porphyry copper trend, and is anticipating the execution of an earn-in agreement and completion of a geophysical survey. 

The Company reported current assets of $11.9 million for the second quarter of 2011, of which $4.4 million is cash and cash equivalents, and generated $0.4 million in management fees from its status as an operator on a number of joint ventures.  Like many junior exploration outfits, shares in Millrock have pulled back sharply in the past twelve months, and are currently trading at 47 cents, down over 50% from their 52-week high of $1.05, but up from their 2011 low of 35 cents which was hit in September.  Investing in project generators like Millrock requires a medium to long term view, but for patient investors the rewards can be huge.

The work is to be focused in specific, defined areas of interest in the Alaska Range and Alaska Peninsula porphyry belts.

According to the agreement's terms, Vale will provide funding to Millrock of a minimum of US$1 million in the first year and a further US$1 million in the second year at Vale's option for early-stage exploration work to identify targets.

Funding may continue in subsequent years at funding levels to be determined between the parties, Millrock said in a statement.

Once Millrock nominates a property as a "designated project", Vale will have 180 days in which to accept or decline the project. If accepted, the mineral rights will be held in Millrock’s name, but the designated project will become subject to an earn-in style option or joint venture deal. Millrock can nominate multiple properties for this status.

For Vale to earn a 65 percent stake in the designated project, it must spend US$3.5 million in exploration expenditures over three years, and pay Millrock US$200,000. After earning its initial stake, Vale can elect to pay for further exploration and development costs until a feasibility study has been finished, boosting its interest to 75 percent.

Further development of designated properties would continue, with the parties contributing on a pro-rata basis.

In a statement, Millrock’s chief executive, Gregory Beischer, said the alliance draws on the technical abilities of both companies, using its geological database and local operational skills, and capitalizing on the financial strength of Vale.

Millrock said if a joint venture party dilutes its interest to below 10 percent, the interest will be converted into a net smelter returns royalty of 2 percent on gold, silver, platinum, palladium and rhodium, and 1 percent on all other metals.

Millrock has twelve active exploration projects, namely eight gold and copper properties in Alaska, with four copper prospects in Arizona.

Shares of Millrock rose 3 cents, or 5.32 percent, reaching a high of 50 cents Monday afternoon on the junior Toronto Stock Exchange.

Drill programs have been taking place across three projects in each Alaska and Arizona, while surface work at the company's other projects are continuing in anticipation of drill programs for the 2012 season.

Although Millrock said its exploration expenditures appear on track to exceed its $15 million full year budget, approximately 90% of the funding for the properties is being provided by partner companies via earn-in option agreements.

In Alaska, Millrock said drilling at its Uncle Sam project in the Tintina gold belt completed nine holes in July 2011, totaling 1,950 metres at the Lone Tree and Wolf prospects.

The exploration work, which is being funded by Crescent Resource (CVE:CRC), targeted a 500-metre by 250-metre portion of a larger gold-in-soil anomaly on the Lone Tree zone. Intersections on the prospect found 6.8 metres grading 1.01 grams per tonne (g/t) gold, and 33.8 metres at 0.58 g/t gold.

Meanwhile, at the Wolf prospect, 4.42 g/t gold over 11.4 metres was returned.

The Estelle project, in the Kahiltna district of Alaska, just recently saw the completion of the field geological and geochemical surveys, which were started at the beginning of July, with drilling following several weeks after.

Assays from four holes, totaling 1,500 metres, are expected in the coming weeks. Exploration on the property is being funded by Teck American Inc, which can earn into the project.

Two other holes drilled at the Shadow prospect mirrored and deepened a historical drill hole, completed by Cominco, now known as Teck Resources (TSE:TCK) (NYSE:TCK) in the 1980s, which found 29.6 metres at 3.01 g/t gold, and which ended in mineralization a just 100 metres deep.

Millrock's third property in Alaska, the Humble project, located in the southwestern portion of the state, has experienced problematic drilling since its start in mid-August, the company said.

Kinross Gold (TSE:K) (NYSE:KGC) is funding exploration work to earn a majority interest in the project, and though operations continue, Millrock said it remains unclear whether any useful amount of drilling will be completed.

Meanwhile, in Arizona, the Galiuro project will soon see the start of at least one hole drilled to test the Fourmile target, Millrock said, though didn't specify an exact date.

The exploration program, funded by a subsidiary of Brazilian Vale S.A. (NYSE:VALE), detected extensive zones of porphyry alteration and mineralization during the spring of 2011. Though numerous drill targets remain, the focus will be at the Fourmile prospect for the immediate future, the company said.

At the San Jose project, also in Arizona, drilling recently began in the northern part of the San Jose property, where coincident magnetic and ZTEM anomalies had been detected earlier in the year. Inmet Mining (TSE:IMN) is funding work on the site, including the drilling of at least three holes, totaling up to 5,000 metres for the rest of the year.

The high number of partners on these projects is in line with Millrock's "Project Generator - Joint Venture" business strategy. As the operator for most of these projects, Millrock receives management fees and option payments during the earn-in process, which largely offsets overhead expenses, it said.

In Alaska, Millrock has invested approximately $1.0 million for regional project generation in 2011, and has staked seven new properties, which it says it may offer as an earn-in opportunity.

Meanwhile, the company also acquired the Rainville property during this past summer, which is located in southeastern Arizona, near the border of New Mexico, and sits on an extension of the prolific Safford porphyry copper trend.

Based in Vancouver, B.C., Millrock shares on the TSX-Venture Exchange rose 1.96% to $0.52 per share as of 3:04 pm EDT.

The project generator announced the results of assays covering 621 metres in four holes at the Wolf prospect on the property.

Highlights from the drill campaign include 11.4 metres grading 4.86 g/t gold in hole WLF-002, and 2.74 metres grading 3.63 g/t gold in hole WLF-001.

These results, which also include 3.05 metres grading 3.27 g/t gold in hole WLF-003 and in hole WLF-004, 2.13 metres grading 1.81 g/t gold, confirm the presence of a strong, near-surface gold mineralization along the northwest-southeast- trending strike length. It is also open at depth.

This first phase of drilling concentrated on the southern end of the claim block and targeted a strong gold-in-soil anomaly measuring more than 2,000 metres long and over 1,000 metres wide.

The wolf prospect, where historic drilling intersected 4.45 g/t gold over 15.54 metres (USRC-22) and 13.72 metres grading 1.34 g/t gold (USR-055), is close in proximity to the Naosi zone owned by Sumitomo Metal Mining Co Ltd.

The Naosi zone recently announced an intersection of 7.92 metres grading 7.8 g/t gold and 19.7 g/t silver. Since the two zones are oriented along a similarly trending structure, Millrock said it suggests the possibility of a larger gold mineralization.

The Uncle Sam property is a joint venture between Millrock and Crescent Resources Corp (CVE:CRC), with Millrock managing the exploration and Crescent funding the project.

Crescent has an option to purchase a 100% interest in Millrock's rights to the property, subject to royalties, in exchange for US $2.5 million in exploration expenditures, $300,000 in cash and the issuance of 13% of Crescent common stock to Millrock, which already owns 5% of the company.

Millrock, whose stock on the TSX-Venture rose 3.13% to trade at $0.66 per share as of 1:48 pm EDT, also said it completed five diamond drill holes at the Lone Tree prospect, located northwest of the Wolf zone. Assays for these holes are pending.

The Galiuro property, which is located in southeastern Arizona, is a porphyry copper and gold deposit hidden beneath alluvium and Tertiary volcanic cover. 

The phase two drilling program completed in May consisted of two holes, and a deepening of a hole initially drilled in 2010 for a total of 2,251 meters.

Hole Gal-1002, originally drilled to a depth of 679.4 meters in 2010, was re-entered and deepened for a total depth of 1,279.3 meters. 

Millrock said it observed phyllic dominated alteration along with minor copper mineralization. The company also said it suspected it was thought that a porphyry copper deposit may exist beneath the original foot of hole.  

However, numerous zones of weak copper mineralization were intersected from 934.8 meters to 1,181.7 meters, upon deepening the hole. 

Specifically, potassic altered porphyry was cut from 1,002 to 1,068 meters and contained elevated copper values including a zone that assayed 0.05% copper over 48.2 meters.

By the same token, the first hole Gal-1004 was drilled to a depth of 1,054.6 meters to test the cone Z Axis Tipper Electromagnetic System (ZTEM) anomaly.

The company intersected porphyry copper style propylitic alterations with traces of chalcopyrite, bornite and elevated molybdenum values at the bottom of the hole. 

Millrock said in a statement that while mineralization is weak trace amounts of copper and irregular molybdenum values coupled with the associated alteration package in geologically permissive rocks suggest a porphyry copper deposit is nearby.

The company has recommended further drilling in the area.

Similarly, the second hole Gal-1005 was drilled to a depth of 596.5 meters to test a magnetotelluric conductor with a coincident magnetic high. 

The company said it intersected Laramide granodiorite throughout the hole, and found traces of chalcopyrite, as well as low level copper anomalies. 

Additionally, the company plans to conduct phase three drilling by fall 2011. It plans to focus on the Fourmile target. 

This circular magnetic feature is ringed by a strong conductive zone as identified by a ZTEM airborne geophysical survey. Intense argillic alteration is known from rock exposures and prior drilling on the west side of the structure, Millrock said.

The claims are situated southeast of the town of Safford, Arizona and southwest of the Morenci mine. The upcoming drill program will consist of three holes totalling 4,000 meters, and will be funded by Inmet Mining under the terms of the joint venture.

In early spring this year, two holes were drilled at Dry Mountain. The first hole intersected only Tertiary-aged rocks, with no clear explanation for the conductive zone that was identified through airborne geophysics, Millrock said. A previous geochemical anomaly measuring approximately 10 kilometres in diameter was identified on this block, strong in copper and molybdenum.

No anomalous copper levels were detected, and a second hole was terminated before completion, due to strong water flow.

However, Millrock and Inmet plan to re-drill the hole with equipment capable of dealing with these conditions.

Since completion of the initial drilling, additional surface geochemical surveys have been completed over conductive zones in the south part of the claim block. The company said it is waiting for results before it decides whether to drill further in this part of the claim block.

At the nearby San Jose project, two holes were also drilled. Laramide aged rocks were intersected, but no signs of porphyry alteration or mineralization were observed.

Several high priority targets were identified after an airborne magnetic survey flew over this northern part of the claim block. An extra 289 claims were staked to cover extensions of the targets, Millrock said, and three holes will be drilled in September to test these extensions.

Under the joint venture deal, struck early last year, Inmet can earn a 70% stake in the two claim blocks if it spends US$4 million in exploration expenditures and by making option payments of US$300,000. Thus far, Inmet has funded $1.7 million of exploration work on the properties.

Millrock Resources is a mineral explorer focused on discovery and development of metallic mineral deposits in Alaska and Arizona.

Currently, the company has 12 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 worth more than US$15 million this year.

The drilling, which is being funded by Crescent Resource Corp (CVE:CRC) under an option agreement, will consist of 2,100 metres, to be budgeted at US$2.2 million.

In January, Crescent signed an option deal to purchase a 100% interest in Millrock's rights to the property.

Drilling by Millrock, as the operator of the project, will initially focus on two high priority targets, including the Lone Tree and Wolf prospects, to confirm and expand known mineralization.

At Lone Tree, a very strong gold in soil anomaly was found that measures approximately 4,000 meters in length and up to 1,000 meters wide. Previous drilling by other operators has returned encouraging results such as drill holes USC-011, which contained an intersection of 19.22 metres averaging 2.03 g/t gold.

Meanwhile, at Wolf, the gold in soil anomaly measures over 2,000 meters in length and 1,000 meters in width, and has returned results from previous operators such as hole USRC-22, where an intersection graded 4.45 g/t gold over 15.54 meters.

At the same time as the drill program, surface exploration work will be completed to develop additional drilling targets.

In exchange for Crescent's interest in the property, it must spend US$2.5 million in exploration expenditures and pay Millrock US$0.3 million in cash as well as a number of shares. So far, Millrock owns a 5% stake in Crescent.

Millrock currently has twelve active exploration projects, eight gold-copper properties in Alaska, and four porphyry copper prospects in Arizona.

The permits cover lands located southeast of Safford, and south of the Morenci mine in southeastern Arizona.

Millrock said it believes there is potential to discover porphyry copper deposits on the property hidden beneath overburden, as Rainville is positioned along the trend of Safford deposits, which have been actively explored by mining giant Freeport McMoran.

Under the terms of the deal, Millrock must pay a total of US$400,000 and issue 500,000 shares to the vendor over a period of six years in order to maintain its option. If all option payments are made, the property can then be purchase for a sum of US$1.0 million.

In addition, if Millrock establishes an indicated mineral resource of 1.5 million tons or more of contained copper, the company will then owe a further US$1.0 million.

Millrock currently has 12 exploration projects, consisting of eight gold-copper properties in Alaska, and four porphyry copper prospects in Arizona.

Under the terms of the agreement, Teck can earn 55% by incurring exploration expenses of US$3.6 million. With the $3.4 million exploration program approved for the site by Teck today, along with expenses already incurred, Teck will own 55% of the property by the end of this year.

Teck will then have the right to earn an additional 10% under a second option agreement by spending another $5 million and by making cash payments of US$400,000.

"Millrock is pleased that Teck is funding this project aggressively", said president and CEO of Millrock, Gregory Beischer.

"We have held off on drilling for two years to carry out a comprehensive, systematic, surface exploration program to select the best possible, well-defined drill targets.  This budgetary level gives the project a great chance at early success."

Millrock will act as manager of the 2011 exploration program, which will include plans for drilling at the four main zones of large scale anomalous gold: Oxide Ridge, Shoeshine, RPM and Stoney prospects.

The Estelle project, which covers 24,600 hectares and is located 160km northwest of Anchorage, lies adjacent to Kiska Metals' Whistler copper-gold deposit.

The property is located in the Kahiltna Terrane, an assemblage of rocks that hosts the giant Pebble copper-gold-molybdenum-silver deposit.

Millrock currently has eleven active exploration projects - eight gold-copper properties in Alaska, and three porphyry copper prospects in Arizona.  The company's shares rose more than 8% on the news today, to trade at $0.88 as of 12:25pm EST.

The initial drill program will consist of five holes totaling approximately 4,000 metres, designed to test buried porphyry copper targets along trend of Freeport McMoran's (NYSE:FCX) Safford copper deposits.

"There is every indication of porphyry copper deposits under shallow cover beneath Millrock's claims," said Millrock's vice president of exploration, Phil St. George.

"Modern geophysical methods have identified excellent targets, and this aggressive drilling campaign will determine whether another large porphyry system exists."

Millrock, as operator of the project, has allocated a US$1.6 million budget for the exploration phase, which will be provided by Inmet Mining (TSE:IMN) under an option agreement signed between the two companies early last year.

Inmet has the right to earn a 70% stake in the two claim blocks by spending US$4.0 million on exploration and by making option payments of US$300,000.

Millrock currently has eleven active exploration projects, consisting of eight gold-copper properties in Alaska, and three porphyry copper prospects in Arizona. With funding primarily coming from its joint venture partners, the company plans to carry out exploration programs valuing more than US$14 million in 2011.

In a statement issued today, the company said Brixton made the first cash payment of $40,000 in full, and issued 1.2 million shares to Millrock. In turn, Millrock delivered to Brixton an NI 43-101 compliant technical report describing the geology and exploration potential of the Cristo claim block.

In addition, Millrock said it has staked a further 252 claims surrounding the Cristo block, which Brixton has taken up as part of the option agreement, reimbursing Millrock for the staking costs.

As a result, the Cristo property now consists of 328 Alaska state mining claims covering 21,237.9 hectares. Early stage exploration at the site has identified the geological setting as being prospective for porphyry copper-gold and intrusion-related gold deposits.

Under the terms of the agreement, Brixton can earn 100% of the property in return for incurring US$5 million in exploration expenditures, making payments totalling US$330,000 and issuing two million Brixton shares and two million share purchase warrants. Brixton will be the operator during the earn-in period.

Millrock currently has eleven active exploration projects - eight gold-copper properties in Alaska, and three porphyry copper prospects in Arizona. Its joint venture partners, underwriting some $7.5 million of exploration in 2010, include Kinross, Teck, Vale, Inmet and Altius, as well as junior explorers Ryan Gold and Crescent Resources.

"All of our exploration projects are on American soil, and most of our employees are Americans. It therefore makes good sense to become a part of the OTCQX marketplace and provide American investors with greater access to an investment in their own country," said president and CEO Gregory Beischer.

Under the agreement, Crescent can acquire the Uncle Sam claim property in return for a cumulative US$2.5 million in exploration expenditures, and paying to Millrock a combination of cash and stock worth US$0.3 million.

If the agreement proceeds to December 31, 2011, Millrock will be issued enough shares to an18% ownership stake in Crescent.  

Also, Crescent will issue to Millrock 1.5 million shares if the property is found to have one  million ounces of gold in NI 43-101 compliant measured or indicated resources.  For every additional million ounces of gold resource, Crescent will also need to issue one million shares to Millrock.

Some of the historical intercepts at the Uncle Same Property included 26m at 0.46 g/t at hole USC-001, 5.8m at 1.57 g/t at hole USC-002, and 10m at 1.55 g/t at hole USC-010.

Millrock will be the operator of the Uncle Sam property until November 1, 2011, after which Crescent will operate it. 

While the option agreement is in effect, Crescent will also assume Millrock’s cash payments to Kiska Metals (TSX-V:KSK).  Millrock originally optioned with Kiska Metals (TSX-V:KSK) in 2009 for the Uncle Sam Property.

The property, which is situated at the intersection of the Resolution and San Manuel / Kalamazoo porphyry copper trends, is currently under an earn-in agreement with Brazil-based Vale's Canadian subsidiary. The terms of the agreement dictate that Vale funds the work on the property to earn a 60% interest, with Millrock operating exploration programs.

The target at the Galiuro property is a large porphyry copper +/- gold deposit hidden beneath alluvium and Tertiary volcanic cover, Millrock said.

Because of the Tertiary volcanic cover, little exploration work has previously been done by other companies.

But drilling by Millrock and Vale in the spring resulted in the discovery of porphyry copper mineralization and alteration in Cretaceous - aged rocks hidden beneath Tertiary volcanic cover rocks.

The planned 4,000m, four hole drill program will further test these targets, as well as others in the area, Millrock said.

Vale has spent approximately US$1.5 million to date on the property, and is required to spend a total of US$3.5 million in exploration expenses, as well as make payments totaling US$850,000. The company can earn an additional 10% stake in the property by funding a feasibility study.

Millrock currently has twelve active exploration projects, nine gold-copper properties in Alaska, and three porphyry copper prospects in Arizona. Its joint venture partners, underwriting approximately $7.5 million of exploration in 2010, include names such as Kinross, Teck, Inmet, Altius and Vale, as well as junior explorers Valdez Gold, Brixton Metals and Crescent Resources.

Millrock was up 1% at $1.01 as of 11:47am EST.

The new claims, otherwise known as the Humble property, are located on state land approximately 80 km northeast of Dillingham, Alaska, covering multiple geophysical targets with coincident surface geochemical anomalies, the company said.

According to Millrock, historical drilling and recent geophysical and geochemical surveys indicate the potential for "copper-gold-molybdenum porphyry-style mineralization".

The company noted that geological and geophysical characteristics bear similarities to the Pebble deposit, a porphyry deposit that is reported to contain a measured and indicated resource of 5.94 billion tonnes grading 0.42% Cu, 0.35 g/t Au, 250 ppm Mo, and an inferred resource of 4.8 billion tonnes grading 0.24% Cu, 0.26 g/t Au, 215 ppm Mo.

Millrock is planning a limited drill program for 2011 at Humble, for which the funding is to be provided by a subsidiary of Kinross Gold (NYSE: KGC).

Under a joint venture deal between the two companies, Kinross has the option to earn a 60% interest in an area which includes the Humble claims, in return for incurring a total of US$4 million in exploration expenses by December 31, 2013, making payments to Millrock totalling US$200,000, and reimbursing the 2010 state or federal claim maintenance fees paid by Millrock.

Kinross also has the right to earn a further 15% stake by spending an additional US$6 million in exploration costs by 2016.

A portion of the Humble property is subject to a 2% net smelter returns royalty on gold, and a 1% NSR on other metals production to Altius Resources, Millrock's partner in a strategic alliance of regional prospecting in Alaska, which resulted in the staking of the new claims.

Millrock currently has 12 active exploration projects, nine gold-copper properties in Alaska, and three porphyry copper prospects in Arizona. Joint venture partners include Kinross, Teck, Vale, Inmet and Altius, as well as junior explorers Valdez Gold, Brixton Metals and Crescent Resources.

The company was up more than 2% on Monday, trading at $0.9 as of 11:16am EST.

Instead of using our shareholder’s money we're using funding from other exploration and mining companies. In this way we avoid constantly diluting our shareholder’s interest in the company by selling more shares....yet we still expose our shareholders to potential large share price gains by making discoveries.

So far we've been really quite successful in coming up with projects in which other companies are willing to invest. Some of our partners include household names in the mining industry like Vale, Teck, Kinross and Inmet. You know it's really quite a great group of companies and I think it proves our credibility.  Our record shows that we can generate high quality exploration projects.


Why is Millrock focused on prospecting for gold projects in Alaska and copper gold projects in Arizona?


Well we focus on Alaska and Arizona because it's home. We know these states very, very well and we know that they have a great endowment in gold and copper. And they are very safe  jurisdictions in a global context. We've had exploration success in these jurisdictions with other companies in the past and we think the projects we've now assembled have an excellent chance of exploration success.

We'll generate projects on a variety of metals but we feel particularly strong on the prospects for increases in the prices of gold and copper, making the projects that target these metals really attractive.


How pleased are you with the drilling results from the Bluff Gold Project which is on the Seward Peninsula which you announced a few days ago? And what are the terms of the Joint Venture with Valdez Gold for the Bluff Property?


Well we tripled the strike length of the known gold zone making the deposit at least 900 metres long, and discovered an entirely new, parallel zone that in one hole graded 3.8 grams per tonne over 32 metres.  So we are definitely pleased with those results and so is our funding partner Valdez Gold. They had put up the 1.2 million for the drilling programme. So I think you can watch for more great results coming out of this project next summer when we get going again.


What are your thoughts on the results from your 2010 early stage exploration programme at Council which is also on the Seward Peninsula in Alaska and what are the terms of your Joint Venture with Kinross for Council?


Well to be perfectly frank, Harry, we were hoping for better drill results at this project. I would say the results are quite interesting but they don't constitute a new gold discovery.

But we did learn a lot and we developed many more targets for next year. And Kinross is a patient explorer; they understand that it often takes many drill holes to make a discovery.

My guess is they'll fund the project at a similar level next year, approximately one million. And that's really the beauty of this business model; we're risking their money, not our shareholder’s.

And as far as the deal goes, if Kinross puts up a total of six million and pays Millrock 400,000 dollars, they'll end up owning 75% of the project. And if there's a major discovery made we'll sell that remaining 25% to Kinross or to a rival company to the great benefit of our shareholders.


You recently signed an earn-in agreement with Crescent Resources for your Uncle Sam property located in the Tintina Gold Field in Alaska. What is the rationale for this step and what are the terms of this agreement?


Well, you know, previously a lot of our projects have been funded by major mining companies and that was helpful to Millrock because it really proved our credibility. But now with the improving markets juniors can raise a lot of venture capital and so we're going to try and take advantage of that.

In this case the company, Crescent Resources, has been given the option to purchase 100% interest in the project but if they get that far Millrock will end up with 18% of the outstanding shares of Crescent.

They'll have to raise and expend two and a half million dollars and pay us 300,000 dollars to make the purchase. And if they make a discovery those Crescent shares will be worth a lot of money –  especially in a hot gold market – and Millrock shareholders will share in that wealth.


You have a Joint Venture with Teck Resources for the Estelle Project in Alaska and recently announced results that included 9.1 grams per tonne of gold over 27.4 metres. What can you say about these results and the Joint Venture with Teck?


Well over all, Teck was quite intrigued with Estelle when we presented it to them last winter. But of course in the winter in Alaska is not a good time to do a field examination, but they went ahead and made an agreement with Millrock without stepping foot on the property.

At the same time, they became shareholders in Millrock; they purchased about 6% of the company's shares through equity financing. But now that they've been on the property I think they really like what they see, it's an excellent gold project with potential for a really large deposit. So I would look for Teck next year to fund a major drilling programme.

The chip sample results that we recently announced really are quite interesting, they're a good grade and a good width, but you know there are many targets on this property. The general area is just north of the giant Pebble deposit in Alaska, a huge copper/gold project. And you know that's why Teck's so keen; the prize really could be huge. But it's an expensive place to work and we're really glad that Teck is footing the bill on this one.


As the exploration season has wound down in Alaska you'll be focusing more on your prospects in Arizona. Bring us up to date with Millrock's Joint Venture projects with Inmet and Vale in Arizona and the work that is underway.


Well it's an exciting time right now Harry, we're ramping up in a big way our Arizona copper projects. Both our partners, Vale and Inmet, are very pleased with the first round of exploration that we conducted earlier this year and have pulled in a lot of their remaining 2010 discretionary exploration dollars to fund drilling on our projects in November and December. So we'll have drills turning just within a few days and we'll be running flat out through the remainder of the year on two projects.

And these are really compelling targets. We've used some cutting edge geophysical surveys in combination with some well thought out geological concepts and so I feel quite good about these targets and you can look for news on them in December and January.


Who are Millrock's major shareholders and in particular who are Altius Minerals? And how supportive are your major shareholders Greg?

Interestingly some of our major shareholders are other mining companies: Teck, Kinross, they own about 6% each of the company and Altius Minerals owns around 17%.

Altius I would comment on in particular; they arguably are the most successful project generator business model company of all time. And they started just like us....as a few geologists with bright ideas. They generated projects and convinced other companies to spend money on them but made very excellent discoveries in a hot uranium market; as a result made their shareholders a lot of money.

And so all the companies have been very supportive, Altius in particular has sort of become like a big brother, providing us with direction and advice. And indeed one of their founders recently retired from the company and has joined Millrock's board. So we're getting a lot of help from them, they're very supportive.


What is Millrock Resources' financial situation going forward Greg?


Well at this point Harry I think we feel somewhat comfortable. We've built a solid foundation. We've got 3.6 million dollars in the bank at the moment but we're really not spending much of our own money anymore.

We've achieved the idea of a fully sustainable exploration company that's constantly drilling through the year, we're well funded, we're cash-flow positive and that's you know a very rare thing for a junior company to be able to say.

We get income from option payments on each one of our projects and we're the manager in all cases so we take a management fee, about 10% of every dollar that goes in the ground. And so with that income we cover off all our overhead.  So I think we're in a good financial position for the coming years.


What can investors expect from Millrock Resources over the next 12 to 18 months Greg?

Well you can definitely expect a lot of drilling. I'm looking forward at our preliminary exploration budget for 2011 and it looks like we'll probably spend between 15 and 17 million dollars exploring in Alaska and Arizona next year. And that will include a great deal of drilling on probably seven projects.

And so that's a lot of news and that's a lot of potential discoveries, all of which can take our share price from its current spot at around 65 cents up substantially higher.