VANCOUVER, BRITISH COLUMBIA, Dec. 15, 2009 (Marketwire) -- Millrock Resources Inc. (TSX VENTURE:MRO) ("Millrock" or the "Company") is pleased to announce that it has secured an option to purchase a 100% interest in the Albion property. The project is located in the historic Council Mining District on the Seward Peninsula, 100 kilometres by road northeast of Nome, Alaska. The claims are immediately adjacent to the Council land block upon which Millrock has an existing agreement with the Bering Straits Native Corporation (BSNC). This claim block, along with other mineral right held by Millrock will be the focus of an Exploration Agreement with Kinross Gold Corporation (TSX:K)(NYSE:KGC), as also announced today in a separate press release.
Gregory Beischer, Millrock President and CEO, stated, "The Council Mining District has historically produced a great deal of placer gold. With the addition of this claim block, Millrock controls the mineral rights that cover the most probable lode source areas for this placer gold. A large, strong soil geochemical anomaly is situated at the headwaters of Albion Creek immediately upslope from a historic placer mine. Drilling to test the targets is planned for 2010."
Ophir Creek and the surrounding tributary creeks that comprise the Council Mining District have produced in excess of half a million ounces of placer gold. A placer operation at the head of Albion Creek historically mined what appears to be a residual lode deposit. A large soil geochemical anomaly surrounds the old placer workings and is centred on a northwest trending structure. The gold-arsenic anomaly measures 900 metres by 2,000 metres.
Mineralization on the Seward Peninsula typically occurs as low-sulfide, gold-bearing quartz-arsenopyrite veins preferentially hosted by graphitic and locally calcareous and pyritic schist. Larger deposits occur in shear structures and in brittle rocks. The contact with an overlying marble unit is a favourable gold deposition site. The dimensions of the geochemical anomaly and favourable geological setting at the Albion property indicate potential for a large deposit.
The Albion block consists of 51 State of Alaska claims covering 2,231 hectares. Millrock may purchase the claims by paying the owners 500 ounces of gold bullion in annual installments and by making a minimum of US$250,000 in exploration expenditures by the end of 2012. The option payment schedule is:
Due Date Amount (Gold Bullion)
Upon execution 20 ounces
January 1, 2011 30 ounces
January 1, 2012 40 ounces
January 1, 2013 50 ounces
January 1, 2014 60 ounces
January 1, 2015 100 ounces
January 1, 2016 100 ounces
January 1, 2017 100 ounces
A 2.5% NSR royalty on gold and silver is payable from production. The royalty may be reduced to 1.0% by paying the owner 2,000 ounces of gold bullion. After the purchase option has been exercised, an advanced minimum royalty of 100 ounces of gold bullion is payable annually until commercial production occurs. The advanced royalty can be credited against the production royalty.
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 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.