Millrock Resources Inc.
TSX VENTURE : MRO

Millrock Resources Inc.

October 13, 2015 09:15 ET

Millrock Enters Option to Purchase Liberty Bell Gold-Copper Project, Alaska

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 13, 2015) - Millrock Resources Inc. (TSX VENTURE:MRO) ("Millrock") announces that it has entered into an agreement under which it has been granted the option to purchase the Liberty Bell gold-copper project located near the town of Healy, Alaska. The property is comprised of 188 claims covering 6,150 ha.

The Liberty Bell project is prospective for a) replacement-style gold mineralization, b) gold-bearing quartz veins, stockworks and shears, and c) intrusion hosted gold. The claim area is host to a small, former producing mine - the Liberty Bell Mine - which was operated by Eva Creek Mining. As reported in a U.S. Geological Survey Bulletin, production records for the Eva Creek Mining Company for 1932 and 1933 indicate that 8,400 ounces of gold were produced from 17,500 short tons of ore (Smith, P. S., 1933, Mineral Resources of Alaska in 1930: U.S. Geological Survey Bulletin 836-A, p. 1-83). In 1987 NERCO reported a resource estimate of approximately 150,000 ounces of gold in rock grading 0.08 to 0.10 ounces of gold per ton. (Freeman, L.K, Hannemann, N.L., and Flanders, R.W., 1988, Liberty Bell Joint Venture Report of 1987 Exploration: Resource Associates of Alaska Report 70p). Note: The resource estimate was produced prior to the institution of NI43-101 guidelines for reporting mineral resources. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and Millrock cannot presently verify the relevance or reliability of the historical estimate. Millrock is not treating the historical estimate as current mineral resources or mineral reserves. Re-sampling and re-logging of existing drill cores and confirmatory and infill drilling from surface will be required to determine the significance of the historical resource. A qualified person has not verified the production reports or mineral resource data reported by NERCO.

The most recent exploration done on the property was completed from 2007 to 2010, by New Gold Inc.'s subsidiary Metallica Resources Alaska Inc. Metallica carried out a comprehensive program and focused drilling efforts on the western portion of the property rather than in proximity to the old Liberty Bell Mine. Further drilling is warranted in the Liberty Bell mine area, as well as several other virtually unexplored areas of the property, to test for the presence of a large gold deposit.

The presence of significant levels of copper within the Liberty Bell gold mineralization is unlike most other copper-deficient intrusive-related gold occurrences in the Tintina Gold Belt of Interior Alaska-Yukon Territory. However, recent exploration by Contango ORE, Inc. at their Tetlin project near Tok, Alaska, revealed the presence of a previously unrecognized type of late Cretacous gold-copper mineralization that shares many similarities with the alteration and mineralization described at Liberty Bell. At a 0.5 gram per tonne (gtp) gold cutoff, current resources at Tetlin's Peak deposit include indicated resources of 5.97 million tonnes grading 3.46 gpt gold, 11.0 gpt silver and 0.25% copper, and inferred resources of 3.85 million tonnes grading 2.07 gpt gold, 14.28 gpt silver and 0.23% copper (Contango Ore, New Release, January 23, 2014). Gold and copper at the Peak deposit are associated with elevated silver, bismuth and arsenic in a pyrrhotite-bearing distal skarn setting similar to mineralization at the Liberty Bell property. Peak deposit style gold skarn mineralization was unknown in Alaska when the most recent exploration was conducted at Liberty Bell, opening up new possibilities to the Millrock for high-grade gold-copper skarn mineralization and/or porphyry-related gold-copper mineralization.

The Liberty Bell project is located 100 km southwest of Fairbanks by air, in the Bonnifield Mining District of central Alaska. Infrastructure is excellent. The Alaska railway and the paved, year-round George Parks Highway lie just 10 km to the west of the property. A 230 kV electrical transmission line traverses the project area. At the small village of Ferry (15 km north of the town of Healy) the railway crosses the Nenana River. From the crossing, a series of gravel roads provide access for heavy equipment and fuels to the project site 13 km to the east.

The option was granted by the property owner Boot Hill Gold, Inc. Millrock may purchase a 100% interest in the property (free of any royalty) by paying the annual claim rentals (approximately US$32,000 in 2015) and performing adequate assessment work to maintain the property in good standing during the option period. Millrock may exercise the option to purchase a 100% interest by paying US$600,000 in accordance with the following schedule (or at an accelerated schedule if it so desires.)

Payment Schedule US$
Upon signing $0
March 31, 2016 $25,000
March 31, 2017 $50,000
March 31, 2018 $525,000
Total $600,000

Millrock intends to review existing data and build a comprehensive exploration plan. The Company will seek joint venture partners to fund exploration and thereby earn an interest in the project.

The technical information within this document has been reviewed and approved by Gregory A. Beischer, President, CEO and a director of Millrock. 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. In the search for world-class metallic mineral deposits in mineral-rich Alaska, southwest USA, and Mexico, 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. Millrock currently has twenty-two active exploration projects, nine gold, copper and zinc properties in Alaska, a uranium project in New Mexico, and twelve gold, silver and copper projects in 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: First Quantum, Teck, Kinross, Vale, Inmet and Altius.

ON BEHALF OF THE BOARD

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

  • Millrock Resources Inc.
    Gregory A. Beischer
    (604) 638-3164
    800 - 789 West Pender Street
    Vancouver, BC V6C 1H2
    www.millrockresources.com