Proactive investorsLogo Proactive Investors UK Website

Search field
Additional information
Additional Information
Market: TSX-V
Sector: General Mining
Epic: MRO
News: Latest news
Web Site: Millrock Resources
Other Articles: 22-07-201020-07-201024-06-2010

RSS - Subscribe to the News Today on Proactive UK ▼

Thursday September 02, 11:00Baobab Resources identifies distinct ore domain at Tete’s South Zone

Baobab MD Ben James said the latest drilling results from the Tete project's South Zone characterise a distinct, higher mass recovery, ore domain.

FULL ARTICLE ►

RSS - Subscribe to the News Today on Proactive AU ▼

Thursday September 02, 08:15Indonesia edges closer toward uranium mining and nuclear power

After nearly five decades of national debate on the issue, Indonesia's central government may finally be ready to develop a national nuclear policy, which may lead to domestic uranium mining.

FULL ARTICLE ►

RSS - Subscribe to the News Today on Proactive CN ▼

Wednesday September 01, 01:25Green Dragon Gas reports significant growth as China’s thirst for energy continues

China's thirst for energy resources has continued with an increased focus on domestic supplies of gas, Green Dragon Gas chairman Randeep Grewal said today. In the company's interim results, [...]

FULL ARTICLE ►
Millrock Resources

Millrock Resources

Millrock Resources Inc. is a premier project generator to the mining industry. In the search for world-class gold and copper deposits in the mineral rich Alaska and Arizona, Millrock prospects and packages large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the financial risk and attendant shareholder dilution. As operator, Millrock currently has eleven active exploration projects, eight gold-copper properties in Alaska, and three porphyry copper prospects in Arizona. Its joint venture partners, underwriting some $3.5 million of exploration in 2010, include some of the leading names in the mining industry: Kinross and Teck in Alaska, Vale and Inmet in Arizona.

CLICK HERE FOR FULL ANLAYSIS OF MILLROCK RESOURCES
Thursday, July 22, 2010

Latest Drilling Results Show Promising Signs for Millrock

by Karl Loomes company news image

Strategically positioning oneself with a joint venture partner, allows a junior mining and exploration company to expose its shareholders to the benefits of mineral discovery, while limiting the financial risk and attendant shareholder dilution.

Millrock Resources Inc (TSX: MRO) takes full advantage of these benefits, seeing itself as a ‘project generator’ for the mining industry, indentifying, packaging and operating large-scale projects for joint venture. Today Millrock released drilling updates from two of its key projects, the Council Gold Project and the Bluff Gold Project, which are held in joint venture with two of the company’s main business partners; Kinross Gold Corporation and Valdez Gold Inc respectively. These updates show the partners are making good progress at these sites, and lay out some of their upcoming plans and timetables.


Millrock Resources is a Canadian based company, which focuses its efforts on world-class gold and copper deposits in mineral rich Alaska and Arizona, and as highlighted, predominately works with strategic joint venture partners to package and operate large scale projects. The company has a market capitalisation of C$13 million, around C$350,000 available in cash and cash equivalents and has a working capital of C$920,000. The company currently has eleven active exploration projects, eight gold and copper properties in Alaska, and three porphyry copper prospects in Arizona. Millrock’s joint venture partners, currently underwriting some C$3.5 million of exploration in 2010, include Kinross, Teck, Vale, Inmet and Altius.


The Council Gold Project is located in the historic Council Mining District on the Seward Peninsula, roughly 100 kilometres northeast of Nome, Alaska. Council is connected with Nome by a seasonal State maintained gravel road. A gravel road extends from Council to Ophir Creek, then up Ophir Creek to the northern limits of placer gold production. The lands being explored include state claims that Millrock has staked, or optioned from others, and lands owned by the Bering Straits Native Corporation. Millrock owns, or has the ability to secure a 100% interest in all of the mineral rights comprising the properties, and in total the lands cover approximately 295 square kilometres. The Council area has historically produced at least 300,000 ounces of gold, and is an area of extensive past placer gold production.


The exploration agreement with Kinross covers a 900 square kilometre area of interest. Kinross can earn a 55% joint venture interest in Millrock's Council properties, and any other properties secured by the companies in the area of Interest, by incurring exploration expenditures of US$3 million and paying Millrock a total of US$260,000.

Kinross may earn a further 20% interest, for a total 75% interest, by expending another US$3 million and by assuming obligations of two underlying agreements on the Council project's area of interest. The first underlying agreements concerns the Albion block, consisting of 51 State of Alaska claims covering 2,231 hectares, purchased by Millrock for 500 ounces of gold bullion in annual instalments, and a minimum US$250,000 in exploration expenditures. The second underlying agreement is with the Bering Straits Native Corporation (BSNC) concerning leasehold rights Millrock acquired for the Council project, which calls for certain exploration expenditures, cash payments and royalties.


Millrock is undergoing an extensive exploration program at Council during 2010, including the initial drill test of established geochemical anomalies at the Albion Property, detailed soil geochemical surveys to follow up and expand existing anomalies, eventually compiling project data into a GIS environment including the capability of 3D viewing of surficial and drill hole geology and geochemistry. Today saw the first update of this initial drilling program.


Millrock (as operator at the project) completed 2,062 metres of reverse circulation (RC) drilling to test for hardrock deposits in the historical placer mining region east of Nome. Drilling was done at the Albion prospect, and on a large geochemical anomaly located on lands owned by the Bering Straits Native Corporation and Council Native Corporation. Samples from the 17 hole Council drilling program have been shipped to Fairbanks Alaska for assay.

Millrock note preliminary X-Ray Fluorescence (XRF) analysis indicated numerous intercepts with anomalous gold pathfinder elements (i.e. those associated with gold mineralisation) of arsenic and antimony. A supplemental geological mapping, prospecting and geochemical program designed to identify additional targets for 2011 drilling has been authorized by Kinross. Millrock say rock chip samples collected during the RC drilling program will be compiled as they are received from the laboratory over the coming weeks. The company believe that all results will be in hand and ready for publication in late August or early September of this year.


The Bluff Gold Prospect is located about 80 kilometres east of Nome, 35 kilometres south of Council, and 20 kilometres west of Golovin. A seasonal State maintained gravel road passes within 18 kilometres of the Bluff prospect. The prospect area is on the coast with landing craft accessible beaches and an airstrip providing ready access for personnel and equipment. Nome is serviced by three scheduled jet aircraft flights a day from Anchorage, daily air freight service, and has a small port for use for barge delivery of fuel, supplies, and equipment from the Pacific Rim. The Bluff property is comprised of a land tract covering a total 142 square kilometres, approximately 24 kilometres east of the Big Hurrah gold deposit, which NovaGold is considering for production and processing at the Rock Creek Mine. The land is owned by the Bering Straits Native Corporation and the White Mountain Native Corporation, with Millrock and Valdez having an option to lease the lands for mining.


This exploration agreement with BSNC, covers three discrete tracts of land on the south side of the Seward Peninsula, and covers the source rocks for the high grade alluvial, beach and offshore placers mined in the early 1900's. The BSNC agreement covers all three properties, and is an option to form a 100% leasehold interest, subject to certain commitments and obligations. These include a US$4 million work commitment ($700,000 of which in 2010), US$550,000 in option payments ($70,000 of which in 2010) and a Net Smelter Royalty (NSR) of 2.5% to 5.0% on a sliding scale tied to gold.

Millrock has also entered an option to Joint Venture agreement with Valdez Gold on the Bluff project, where Valdez can earn an initial 55% interest in the project by incurring US$3 million in exploration expenditures and making option payments of US$300,000 to Millrock. Valdez can increase their stake to 75% by making a further US$3.0 million exploration expenditure and an additional option payments of $US600,000. Upon Valdez earning a 75% interest, Millrock will have the opportunity to earn back 25% interest, such that both companies hold a 50% interest, by incurring additional exploration costs (double those of Valdez) or by financing the amount necessary to define an NI 43-101 compliant resource at Bluff exceeding two million ounces of gold.


At Bluff, structurally controlled gold mineralization occurs within a 6.4 kilometre long, arcuate band of schistose rocks near a contact with marble. Drilling by BHP Billiton in the late 1980s identified three zones of mineralization. These zones contain several significant intersections, including 5.5 grams per tonne (g/t) gold over 10.9 meters, 4.2g/t gold over 4.5 meters, and 1.9g/t gold over 16.3 meters. Millrock explored the property in 2008 with geological mapping and soil sampling, and identified new zones of mineralization and high priority drill targets. Drilling and resampling of BHP core samples confirmed the presence of gold mineralization. Millrock believe significant drilling is required on all zones to establish and delineate gold resources.


With this in mind, Millrock are undergoing a 2010 exploration program at Bluff, budgeted at US$1.2 million, which will consist of a targeted 4,500 meters of reverse circulation drilling, expanding surface geochemical survey coverage of the area, eventually compiling project data into a GIS environment including the capability of 3D viewing of surficial and drill hole geology and geochemistry. Millrock also intend this year, to recalculate resources reported by BHP and identify drilling targets to further expand resource. Today Millrock confirmed that initial drilling by the partners, with Millrock as operator, is scheduled to begin July 23rd.


With several key drilling operations underway, Millrock believes the potential newsflow coming from the projects, which it believes have a strong chance of success, offers a potential investment opportunity, with buoyant results over the next few months expected to translate to an appreciation in the company’s value. By allying itself with strategic partners in these operations, Millrock will be reducing the financial risk of the exploration, expecting to increase shareholder wealth with little dilution.

AddThis Feed Button
Register here to be notified of future Millrock Resources articles.

Other Millrock Resources articles


Other Millrock Resources news

More news ►

Investors interested in Millrock Resources recently viewed


No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.