VANCOUVER, BRITISH COLUMBIA, Dec. 15, 2009 (Marketwire) -- Millrock Resources Inc. (TSX VENTURE:MRO) ("Millrock" or the "Company") is pleased to announce that it will enter an exploration agreement with Kinross Gold Corporation (TSX:K)(NYSE:KGC) ("Kinross"). The agreement pertains to a 900+ square kilometre Area of Interest that includes Millrock's Albion and Council properties, and other mining claims. The area is on the Seward Peninsula in western Alaska, approximately 100 kilometres by road to the east of Nome, in the Council Mining District.
Millrock President & CEO Gregory Beischer stated: "Millrock is pleased to expand its business relationship with Kinross. Excellent gold targets exist on the properties and we look forward to an initial drilling program in 2010."
Millrock has an agreement on the Council land block with the Bering Straits Native Corporation. The Company can earn a 100% leasehold interest in the property. The agreement is entering its third year. The Albion property is the subject of a separate option agreement announced concurrently by Millrock today. The Company can purchase a 100% interest in the claims. Surrounding lands have been staked by Millrock to form a large, comprehensive land package covering the upland lode source areas from which the prolific gold placers of the Council Mining District must have been derived.
With this exploration agreement, Kinross can earn a 55% joint venture interest in Millrock's 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. The initial cash payment is US$65,000 and the minimum 2010 exploration expenditure is US$500,000. The agreement includes provision for a private placement financing of C$250,000 in which Kinross will purchase shares of the Company based on a 20-day moving average of Millrock's market price. Kinross may elect to increase its interest in the project to 75% by making a further US$3 million exploration expenditure. Millrock will be the project operator for 2010 and thereafter at Kinross' discretion.
Ophir Creek and the surrounding tributary creeks which comprise the Council Mining District have produced in excess of half a million ounces of placer gold. A placer operation on Albion Creek historically mined what appears to be a residual lode deposit. A large soil geochemical anomaly surrounds the old workings and traverses the property striking in a northwest direction along a structure. The Albion geochemical anomaly measures 900 metres by 2,000 metres and contains strong gold and pathfinder elements. A parallel structure and soil geochemical anomaly of even larger proportion exists to the northeast on the Bering Straits Native Corporation Council land block.
Millrock and Kinross plan to do an initial drill test of the geochemical anomalies in summer of 2010.
About Millrock Resources Inc.
Millrock is TSX Venture Exchange listed company intent upon the discovery of high value mineral deposits, with a focus on Alaska gold deposits and Arizona copper-gold porphyries. The Company follows a project generator - joint venture business model that capitalizes on Millrock's knowledge and ability in two outstanding mining jurisdictions. This model shares risk by partnering with other companies that invest capital to move exploration projects toward development and production. Millrock currently has five active exploration projects in Alaska, and three in Arizona.
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.