www.millrockresources.com
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 eleven active exploration projects, eight gold-copper properties in Alaska, and three porphyry copperprospects 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$14 million for 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.
Millrock Resources options-out Cristo claim group to Brixton Metals
Millrock Resources (TSX-V:MRO) has signed a Letter of Intent (LOI) with privately-held Brixton Metals Corp, to option-out the Cristo claim group - the Monte Cristo & St. Eugene properties - in the Kahiltna region of southern Alaska.
Under the terms of the deal, Brixton can earn up to 100% of the Cristo claim group by expending US$5m on exploration. Additionally Brixton is required to pay Millrock US$350,000 in cash, 1.5m Brixton shares and 1.5m share purchase warrants (with a US$1.00 per share exercise price for 4 years).
"With our recent exploration agreement with Teck at Estelle, and now the participation of Brixton at Cristo, the Kahiltna Terrane has the look of a regional gold play in the making”, Millrock President Gregory Beischer commented. "Through its project generation activities Millrock is revealing the tremendous potential of this largely unexplored portion of Alaska's Kahiltna Terrane".
Millrock will be the operator of the Cristo program during the first part of the 3.5-year earn-in period and it will deliver an exploration NI-43-101 report by December 31 2010, at which point Brixton will assume the operator role, beginning January 1 2011.
The Cristo project is in mountainous terrain hosting receding glaciers, and as the glaciers recede, new mineral occurrences are being revealed. The Cristo target is a large Intrusion-related gold or porphyry copper-gold deposit. The company describe the project’s geology as “extensive alteration zones with strongly anomalous gold and copper values,” these zone were detected via sampling in 2009.
Millrock noted that additional work is presently underway to further characterize the alteration and better define the new mineral discoveries.
Also under the terms of the option deal, the Cristo claims are subject to a 2% net smelter royalty (NSR) on gold and 1% NSR on all other metals production, in favour of Millrock’s strategic partner Altius Resources (TSX:ALS). Furthermore, once fully exercised, the option deal provides a further royalty interest to Millrock, an NSR of 1.0% on gold and 0.5% on all other metals.
The partners originally staked the Cristo project in early 2010.
The Millrock-Altius prospecting alliance has been most active on the Kahiltna Terrane, a geologic region of south-central Alaska which also hosts Millrock's Estelle gold property, which is being explored in joint venture with Teck American Incorporated.
