SOURCE: Millrock Resources Inc.

Millrock Resources

September 26, 2016 08:00 ET

Millrock Announces Progress at Stellar Gold - Copper Project, Alaska

VANCOUVER, BC--(Marketwired - September 26, 2016) - Millrock Resources Inc. (TSX VENTURE: MRO) ("Millrock") announces that induced polarization ("IP") geophysical surveys are presently being conducted on its Stellar gold - copper project located near the Denali Highway in central Alaska. The work is being done by Vista Minerals (Alaska) Inc., a wholly-owned subsidiary of Vista Minerals Pty Ltd, a private Australian company ("Vista"). Vista and Millrock formed an option to joint venture agreement on the project in late 2015, as described in an earlier press release here. Millrock presently owns a 100% interest in the claims, subject to Vista's right to earn up to an 80% interest by expending US$4 million on exploration and paying US$300,000 to Millrock over a four-year period. A production royalty would be payable to Altius Minerals Corporation. Vista is the exploration operator and reports that it is presently conducting IP surveys at the Jupiter copper occurrence and on the west flank of the high-grade Zackly gold - copper skarn deposit. Earlier this year Vista significantly expanded the original Millrock claim block by staking of claims, all of which are now subject to the option to joint venture agreement. The property now covers an area of 7,187 hectares.

Millrock President & CEO Gregory A. Beischer commented, "We are pleased to see this project advancing. The Zackly gold - copper prospect presents an excellent opportunity for Vista to establish a modern gold resource and expand upon it. The porphyry and intrusion-related gold targets, none of which have ever been drilled, are virgin country, ripe for a new discovery."

A variety of mineralization styles are present on the property. The lands are considered prospective for high-grade gold-copper skarn deposits, porphyry copper-gold deposits, or other types of copper deposits and intrusion-related gold deposits. Previously, through a comprehensive program of soil and rock sampling and airborne magnetic, electromagnetic and radiometric surveys, Millrock identified a number of target areas, each of which is briefly summarized below:

Zackly gold - copper skarn deposit: At Zackly, a historical "reserve" of 185,724 ounces of gold and 61.6 million pounds of copper contained in a deposit of 1,407,000 tons (1,128,500 tonnes) grading 0.132 ounces per ton (6.03 grams per tonne) gold and 2.19% copper has been reported by prior explorers (From Resource Associates of Alaska, 1987, 1987 Final Report: Exploration Results from Zackly Gold-Copper Skarn Prospect Alaska Range, Alaska Volume I, 141 p.).

NOTE: A qualified person has not done sufficient work to classify the historical estimate as current mineral resources and Millrock is not treating this historic estimate as current mineral resources or reserves. The Zackly resource estimate study by Resource Associates of Alaska utilized a modified polygonal method based on data from core drill holes, reverse circulation drill holes and surface trenches. Calculations were determined using a drill hole radius of influence of 200 feet and a 0.05 opt Au cutoff. This historic estimate constitutes the most recent reserve/resource study known to Millrock. The historical resource estimate is for historical purposes only. The historical resource estimates were prepared prior to the implementation of NI 43-101 and use terminology different from and current reporting standards, including the terms "indicated and inferred reserves" which incorrectly implies economic viability. The historical estimate is suspect based on poor recovery of the diamond core drilling and also the rotary drilling between 1981 and 1987 resulting in significant core loss within areas of mineralization, together with selective sampling, wide drill spacing between sections and the lack of a quality assurance / quality control assay protocol (Eden, K. A., 2011, Stellar Property, Valdez Creek Mining District, South-Central Alaska: NI 43-101 Technical Report, January 8, 2013, 113 p.). Dr. Eden, a qualified person as defined in NI 43-101, has done sufficient work to determine that it is not possible to use the historical estimates as current mineral resources or mineral reserves and Millrock is therefore not treating the historical estimates as current mineral resources or mineral reserves. He has determined that it will be necessary to re-drill the holes to upgrade or verify the historical estimate as current mineral resources, as described in Dr. Eden's technical report which was filed on SEDAR (www. Sedar.com) on January 8, 2013.

Mars prospect: Located approximately 10 kilometers west of Zackly, this prospect consists of altered diorite intruding volcanic rocks with extensive gossan exposures that locally contain copper mineralization. Soil sample lines across altered zones consistently returned anomalous values, including 950 meters, averaging 763 ppm copper, and 1.2 kilometers averaging 462 ppm copper. Rock grab samples of altered bedrock and float were collected previously by Millrock from the prospect. Seven of those samples assayed over 1% copper with values up to 7.4% copper and up to 1.78 ppm gold. Vista indicates it plans to use IP to test for sulfide minerals along a fault structure that appears to extend from Zackly to the Mars prospect.

Jupiter prospect: At this prospect, Millrock previously identified a multi-element geochemical anomaly, which measures 1.7 kilometers by 2.3 kilometers, and is underlain by a corresponding magnetic high. The anomaly consists of 33 soil samples with copper results ranging between 246 ppm to 3850 ppm. They have an average copper value of 832 ppm. Gold values in these soil samples average 92 ppb and range from 5 ppb to 178 ppb. In addition to high copper and gold, the soils contain anomalous silver and cobalt. A grab sample of rock collected by Millrock in an area northwest of the main Jupiter prospect in 2013 returned an exceptionally high value of 23 percent copper, but no follow up work has yet been done. Vista plans to inspect the site of this sample during the current geophysical phase.

Gemini prospect: The Gemini target area is a newly discovered anomaly generated in the recent exploration program. It is a strong copper-in-soil anomaly centered on a chlorite (+skarn +potassic) alteration zone in andesite and basalt. The anomaly is defined by 12 samples over an area measuring 1.8 kilometers by 3.0 kilometers. Copper values range from 356 ppm to 1130 ppm and average 568 ppm copper. The core copper anomaly is accompanied by strongly anomalous lead, gold, and molybdenum, and is surrounded in a zoned halo of zinc, iron and manganese.

Moonwalk prospect: This is an intrusion-related gold prospect located in the north part of the property. The geology, alteration and mineralization is well exposed on the steep north side of a ridge. Moderately dipping sedimentary rocks are intruded by a granodiorite sill. Quartz veins are mapped over a broad zone of east-trending veining which appears to cut both intrusive and sedimentary rock. The vein zone projects over a kilometer in strike at surface. Rock and soil samples from Millrock's work returned results consistently anomalous in gold, antimony, arsenic, bismuth and zinc. A total of nineteen soil samples, covering an area approximately 500 meters by 700 meters over the altered and veined granodiorite averaged 1.15 grams per tonne gold. Rock samples of mineralized vein material returned assays as high as 30.4 grams per tonne gold.

The technical information within this document has been reviewed and approved by Gregory A. Beischer, President, CEO and a director of Millrock Resources. Mr. Beischer is a Qualified Person as defined in NI 43-101.

About Millrock Resources Inc.
Millrock Resources Inc. is a premier project generator to the mining industry. 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 taken on by most exploration companies. The company is active in Alaska, British Columbia, the southwest USA and Sonora State, Mexico. Funding for drilling at Millrock's exploration projects primarily comes from its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet and Altius.

ON BEHALF OF THE BOARD
"Gregory Beischer"
Gregory Beischer, President & CEO

Some statements in this news release contain forward-looking information. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.

"NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE."

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Melanee Henderson
    Investor Relations
    (877) 217-8978
    Millrock Resources Inc.
    2300-1177 West Hastings Street
    Vancouver, BC Canada
    V6E 2K3