Millrock reports drilling results and expands drilling program at Galiuro property in Arizona

Millrock Resources (MRO - TSX:V) has released the results of exploration work carried out at its Galiuro porphyry copper-gold project in southeastern Arizona, demonstrating the discovery of porphyry copper mineralization and alteration in Cretaceous – aged rocks hidden beneath Tertiary volcanic cover rocks.

While no ore grade intersections were obtained, Millrock geologists are strongly encouraged by the results, the company said.

So much so, Millrock has also announced that Vale Exploration Canada (VEC) has approved a supplemental program and budget of $1 million for further drilling at the property in fall 2010.

In addition, Millrock and VEC have more than tripled the size of the Galiuro property by acquiring additional mineral rights to cover a second porphyry system to the east.

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

Highlights of the recent drill results include hole GAL_1001, which drilled to 1,591 ft, and intersected hematite and goethite rich leach cap and phyllic altered (quartz-sericite-pyrite) rocks with pyrite content of 1% to 2%. The intersection from 1,314.5 ft to 1,338.8 ft graded 0.2% Cu over 24.3 ft.

In Hole GAL_1002, a hole drilled to 2,229 ft, a porphyry system was indicated by acid leached diorite porphyry intersected below Tertiary volcanics at 786 ft. Two anomalous intersections were obtained in GAL_1002. The first intersection is from 919.0 ft to 929.5' for 10.5 ft grading 0.12% Cu. The second intersection is from 1,924.5 ft to 1,979 ft for 54.5 ft grading 0.06% Cu.

The presence of bornite is particularly encouraging, according to the company, as it typically occurs only in unusually high grade porphyry systems such as at the Resolution deposit, located 80 km to the northeast of the Galiuro project.

Hole GAL_1003 was drilled to a depth of 1,979.0 ft in a porphyry system after cutting below late, post-mineral Tertiary basalt from the collar down to 720 ft.

"We’ve intercepted copper porphyry alteration and mineralization. As we suspected from our mapping, Tertiary volcanic cover is quite thin. The rocks we have drilled are indicative of higher levels and/or proximal alteration assemblages in a porphyry system. Further drilling to depth, and in interpreted upthrown fault blocks to locate the ore shell of this porphyry system is warranted and will be carried out as soon as possible," said Millrock vice president of exploration, Philip St George.

The property is situated at the intersection of the Resolution and San Manuel / Kalamazoo porphyry copper trends. Because of the Tertiary volcanic cover, little exploration work has been previously done by other companies.

VEC has the option to earn a 60% interest in the project through exploration expenditures totaling US$3.5 million and payments totaling $850,000. The earn-in agreement is in its second year, and VEC has spent approximately $1.5 million on the property to date. The company may earn an additional 10% interest, for a total of 70%, by funding a feasibility study.

Given the results of the drilling program, Millrock and Vale have significantly expanded their land position to the south and west.  In total, an area of over 11,000 acres was staked, bringing the total area covered to approximately 16,800 acres.

Millrock Resources looks for gold and copper deposits in mineral rich Alaska and Arizona. It currently has eleven active exploration projects in Alaska, and three porphyry copper prospects in Arizona. Its joint venture partners, underwriting some $5.5 million of exploration in 2010, include Kinross, Teck, VEC, Inmet and Altius.

VEC is a wholly-owned subsidiary of VALE, the world's second largest mining company by market capitalization with its headquarters in Brazil.

Millrock was down by 1.79% to $0.55 as of 2:35pm ET on Tuesday on the TSX-Venture Exchange.