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 stakes Humble property of 266 claims in southwest Alaska
Millrock Resources (MRO - TSX:V) said Monday it has staked a block of 266 claims, or 17,223 hectares, in the Togiak Terrane in southwest Alaska.
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.
