Millrock provides exploration updates for Alaskan and Arizonan properties, busy year ahead

Millrock Resources (CVE:MRO) provided updates Tuesday for the exploration activities taking place at its properties in Alaska and Arizona.

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.