VANCOUVER, BRITISH COLUMBIA, Apr. 5, 2010 (Marketwire) -- Millrock Resources Inc. (TSX VENTURE:MRO) ("Millrock" or the "Company") announced today finalization of an agreement with Kinross Gold Corporation (TSX:K)(NYSE:KGC) ("Kinross") to explore the Council District on the Seward Peninsula of western Alaska, an area of extensive past placer gold production. Details of the preliminary agreement with Kinross were first announced on December 15th 2009 (here: http://media3.marketwire.com/r/Dec1509release).
With the signing of the definitive agreement, the property exploration partners are now planning an initial exploration program for 2010, scheduled to begin early July. The program will include approximately 2,500 m of drilling to test for hard-rock gold deposits in the uplands surrounding the historic placer workings.
The exploration agreement with Kinross covers a 900 sq km area of interest. The project is in western Alaska, approximately 100 km by road to the east of Nome in the Council Mining District, where over 300,000 ounces of placer gold have been produced. Millrock and Kinross are targeting sediment-hosted vein deposits in the project area and have discovered strong indications of such deposits through historic data compilation, and recent geological and geochemical surveys.
Kinross can earn a 55% joint venture interest in Millrock's Council 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. 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. 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 average of Millrock's market price. This share purchase is to be completed within 60 days subject to receipt of TSX Venture Exchange approval.
About Millrock Resources Inc.
Millrock is a TSX Venture Exchange listed company intent upon the discovery of large, 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 eight (8) active exploration projects in Alaska, and three (3) in Arizona. Four of the projects are the subject of joint venture agreements in which other companies are making exploration expenditures to earn an interest in Millrock's projects. Drilling is planned on at least four (4) of the Company's projects in 2010.
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 the planned initial exploration program on Millrock's Council District property. 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."