Millrock Resources Inc.
TSX VENTURE : MRO

Millrock Resources Inc.

September 07, 2010 09:02 ET

Millrock Reports on Drilling Results, Expanded Drilling Program and Property Acquisition at Galiuro Project, Arizona

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 7, 2010) - Millrock Resources Inc. (TSX VENTURE:MRO) ("Millrock" or the "Company") released results of exploration work carried out at its Galiuro porphyry copper-gold project in southeastern Arizona. Also, the Company has reported that the funding partner, Vale Exploration Canada Inc. ("VEC"), a wholly-owned subsidiary of Vale S.A. ("VALE"), has approved a supplemental program and budget of $1 million for further drilling in fall 2010. Additionally, in conjunction with VEC, Millrock has more than tripled the size of the property by acquiring additional mineral rights to cover a second porphyry system to the east.

Recent drilling by Millrock resulted in the discovery of porphyry copper mineralization and alteration in Cretaceous – aged rocks hidden beneath Tertiary volcanic cover rocks. While no ore grade intersections were obtained, Millrock geologists are strongly encouraged by the results.

Philip St George, Millrock VP of Exploration stated: "The drilling results are very exciting. We've intercepted copper porphyry alteration and mineralization. As we suspected from our mapping, Tertiary volcanic cover is quite thin. The rocks we have drilled are indicative of higher levels and/or proximal alteration assemblages in a porphyry system. Further drilling to depth, and in interpreted upthrown fault blocks to locate the ore shell of this porphyry system is warranted and will be carried out as soon as possible."

The drilling and other exploration work done by Millrock and VEC allows the companies to conclude that:

  • The ZTEM airborne geophysical system has been successful in identifying areas of increased conductivity in Laramide-aged rocks below Tertiary cover due to disseminated sulfides, clay alteration and structures.

  • As indicated by diatreme breccia-style mineralization, silicification and advanced argillic alteration, the level of paleo-exposure in the sub-Tertiary cover rocks is shallow, probably within 500 m of the paleosurface.

  • A porphyry environment with favourable host rocks and potential for high grade deposits is indicated by the presence of bornite mineralization and diabase host rock.

Hole GAL_1001, drilled to 1,591 ft intersected hematite and goethite rich leach cap and phyllic altered (quartz-sericite-pyrite) rocks with pyrite content of 1% to 2%. Copper oxides and fine disseminated chalcocite replacing pyrite was observed. The intersection from 1,314.5 ft to 1,338.8 ft graded 0.2% Cu over 24.3 ft. Diatreme breccia was also intersected in the hole.

In Hole GAL_1002, a hole drilled to 2,229 ft, a porphyry system was indicated by acid leached diorite porphyry intersected below Tertiary volcanics at 786 ft. Near the bottom of the hole phyllic alteration (quartz-sericite-pyrite) with 3-4% pyrite and minor chalcopyrite and chalcocite was intersected, as was intrusive breccia with bornite. The sulfides in these two holes explain the ZTEM conductive zones. Two anomalous intersections were obtained in GAL_1002. The first intersection is form 919.0 ft to 929.5' for 10.5 ft grading 0.12% Cu. The second intersection is from 1,924.5 ft to 1,979 ft for 54.5 ft grading 0.06% Cu. The presence of bornite is quite encouraging, as it typically occurs only in unusually high grade porphyry systems such as at the Resolution deposit located 80 km to the northeast of the Galiuro project.

Hole GAL_1003 was drilled to a depth of 1,979.0 ft in a porphyry system after cutting below late, post-mineral Tertiary basalt from the collar down to 720 ft. Pre-mineral rocks to the bottom of the hole include a mix of Laramide diorite and andesite with Precambrian sediments and diabase. The presence of diabase is encouraging as it can create a chemical trap for high grade mineralization. The higher-grade portions of the nearby Resolution and Ray deposits are hosted by diabase, The diabase is cut by numerous magnetite veinlets that may be related to potassic alteration. No significant copper results were obtained from laboratory analysis of the drill core.

The following table provides information on each hole drilled:

HoleID From To Interval Cu_ppm Mo_ppm Zn_ppm Pb_ppm Au_ppb
                 
gal_1001 1314.50 1338.80 24.3 2012.32 1.28 116.50 694.25 7.47
gal_1001 1495.00 1515.00 20 15.75 1.29 696.25 237.47 0.50
                 
HoleID From To Interval Cu_ppm Mo_ppm Zn_ppm Pb_ppm Au_ppb
                 
gal_1002 919.00 929.50 10.5 1233.56 7.81 117.29 1465.78 21.81
gal_1002 1224.00 1339.00 115 114.73 1.79 472.10 102.09 27.85
gal_1002 1538.00 1547.00 9 46.40 3.80 17.00 40.60 301.00
gal_1002 1924.50 1979.00 54.5 598.49 1.62 321.16 344.97 14.31
gal_1002 2063.50 2099.50 36 108.04 1.14 907.42 69.93 6.76
gal_1002 2159.00 2229.00 70 36.52 1.93 491.16 39.49 1.79
                 
HoleID From To Interval Cu_ppm Mo_ppm Zn_ppm Pb_ppm Au_ppb
                 
gal_1003       No Significant Results      

The target at the Galiuro project is a large porphyry copper +/- gold deposit hidden beneath alluvium and Tertiary volcanic cover. The property is situated at the intersection of the Resolution and San Manuel / Kalamazoo porphyry copper trends. Because of the Tertiary volcanic cover, little exploration work has been previously done by other companies. Through careful geological mapping in combination with airborne magnetic and ZTEM geophysical surveys, Millrock has identified numerous targets that may represent porphyry deposits. Additional drilling has been approved by Millrock's funding partner VEC. VEC has the option to earn a 60% interest in the project through exploration expenditures totaling US$3.5 million and payments totaling US$850,000. The earn-in agreement is in its second year, and VEC has expended approximately US$1.5 million on the property to date. Millrock is the exploration operator. VEC may earn an additional 10% interest, for a total of 70%, by funding a feasibility study.

Given the success of this drilling program, Millrock and Vale have significantly expanded their land position to the south and west. Additionally, a very large block of claims was staked to the east to cover the Fourmile target. This circular magnetic feature is ringed by a strong ZTEM conductive zone. Intense argillic alteration is known from rock exposures and prior drilling on the west side of the structure. In total, an area of over 11,000 acres was staked, bringing the total area covered to approximately 16,800 acres. Millrock and VEC will further advance both targets later in 2010 and throughout 2011.

For the current drilling program, samples of drill core were obtained by splitting core at Millrock's Mammoth, Arizona facility. In total, 495 samples were collected, and sealed in bags for shipping to Skyline Labs in Tucson, Arizona where the samples were prepared, then sent to Assayers Canada in Vancouver, British Columbia for both Au Fire Assay/AA and ICPMS/AR. A quality assurance and quality control ("QAQC") program was in place for the drilling program. A total of 65 standards, blanks and field duplicates were submitted along with core samples. The lab returned acceptable results for all QAQC samples. A small population of core sample pulps was sent to a third independent lab, and the values obtained were consistent with original assays.

The technical information in this news release was reviewed by Gregory Beischer, Millrock's President and CEO, 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 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 financial risk and attendant shareholder dilution. Millrock currently has eleven active exploration projects in Alaska, and three porphyry copper prospects in Arizona. Its joint venture partners, underwriting some $5.5 million of exploration in 2010, include some of the leading names in the mining industry: Kinross, Teck, VEC, Inmet and Altius.

About Vale Exploration Canada Inc.

VEC is a wholly-owned subsidiary of VALE, the world's second largest mining company by market capitalization with its headquarters in Brazil. VALE reported operating revenues of US$23.9 billion and net earnings of US$5.3 billion as of December 31, 2009. VALE is committed to the pursuit of sustainable growth by operating with respect for the natural environment and being an ethically and socially responsible company.

ON BEHALF OF THE BOARD

Gregory Beischer, President & CEO

Some statements in this news release contain forward-looking information, including without limitation statements as to planned expenditures and exploration programs. 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."

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