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 agrees to option out Cristo property in Alaska to Brixton Metals
Millrock Resources (TSX-V:MRO) said Friday it has finalized an option agreement with Brixton Metals for the acquisition and exploration of Millrock's Cristo property in the Kahiltna region of south-central Alaska.
The Kahiltna Terrane, the area in which the Cristo property lies, hosts the Pebble deposit of Anglo-American and Northern Dynasty, as well as Kiska Metals' Whistler copper-gold deposit.
Under the terms of the deal, Brixton has the option to earn a 100% interest in the Cristo claim group, in return for financing US$5 million in exploration expenses and making payments totalling US$330,000. In addition, Brixton will issue two million shares and two million Brixton share purchase warrants to Millrock, with each warrant exercisable at a price of $1.00 per share for a four-year period.
The Cristo claim group is currently subject to a 2% net smelter royalty (NSR) on gold, and a 1% NSR on all other metals production in favour of Altius Minerals, Millrock's partner in regional prospecting in Alaska, which resulted in the staking of the Cristo property in 2009.
Upon full exercise of the option, Brixton will grant a further royalty interest to Millrock comprising a 0.5% gross royalty on uranium, and an NSR of 1.0% on gold and 0.5% on all other metals.
Currently, Millrock is the operator of the Cristo program, with plans to complete an NI 43-101 compliant report by year-end, after which Brixton will continue as operator from the beginning of January next year.
In the past two years, Millrock has taken 80 rock samples and 213 soil samples, resulting in the discovery of two distinct mineral systems, gold-copper mineralization at the St. Eugene prospect and gold-only mineralization at the Monte Cristo prospect.
The largest of three separate zones of gold and copper mineralization at St. Eugene has a 700m strike length, with rock samples up to 1% copper and 2.1 g/t gold. Rock samples assayed at Monte Cristo returned up to 4.2 g/t gold and soil samples assayed up to 3.0 g/t gold.
Millrock currently has eleven active exploration projects, eight gold-copper properties in Alaska, and three porphyry copper prospects in Arizona. Brixton has three properties, including Thorn in BC, Stawell in Australia, and now Cristo in Alaska.
