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 and Valdez Gold plan option-to-JV deal for Bluff gold project, Alaska
Millrock Resources Inc (TSV-V: MRO) said it signed has signed a letter of intent to enter into an option-to-joint-venture agreement with Valdez Gold Inc (TSX-V: VAZ) concerning Millrock's Bluff project east of Nome, on the Seward Peninsula in western Alaska, US.
The agreement will give Valdez the opportunity to earn an initial 55 percent interest in the Bluff project by spending US$3.0 million in exploration expenditures, making option payments of US$300,000, and issuing 900,000 shares of Valdez to Millrock prior to December 31 2012. The 2010 exploration expenditures commitment is US$500,000 and initial payments are US$50,000 and 300,000 shares.
Valdez is able to opt out of the agreement at any time once it has made US$500,000 in exploration expenditures. Millrock will be the exploration operator for the first year of exploration and thereafter at Valdez's option.
Once Valdez has earned a 55 percent interest, it may elect to earn an additional 20 percent for a total 75 percent interest by making additional exploration expenditures of US$3.0 million, further option payments of US$600,000, issuing 1.1 million additional shares of Valdez to Millrock over three years and meeting the obligations of lease agreements with Bering Straits Native Corp.
Upon Valdez having earned a 75 percent interest, Millrock will have the opportunity to earn back a 25 percent interest, so that both Valdez and Millrock hold a 50 percent interest Bluff, by expending two times the amount Valdez expended on exploration and property payments at that time, or by expending the amount necessary to define an NI 43-101 compliant resource of greater than two million ounces of gold, whichever is less.
Bluff is located approximately 80 km east of the town of Nome, Alaska on the south coast of the Seward Peninsula, on Norton Sound of the Bering Sea. A state-maintained road leads to within 18 kilometres of the property. Bluff is 24 kilometres east of the Big Hurrah gold deposit, which NovaGold is considering for production and processing at the Rock Creek mine near Nome.
Millrock carried out exploration in 2008. Geological mapping and soil sampling identified new zones of mineralization, and identified high priority drill targets. Drilling and resampling of previously drilled core confirmed the presence of gold mineralization.
