VANCOUVER, BRITISH COLUMBIA, Jun. 24, 2010 (Marketwire) -- Millrock Resources Inc. (TSX VENTURE:MRO) ("Millrock" or the "Company") announced today drilling has begun at the Council gold project in Alaska, a joint venture with Kinross Gold Corporation (NYSE:KGC) ("Kinross"). Details of the final agreement with Kinross on Council were announced on December 15th, 2009 (here).
The Council District, located, on the Seward Peninsula of western Alaska, is an area of extensive past placer gold production. The US$800,000 2010 exploration program, with Millrock as operator, will include approximately 2,500 metres of reverse circulation drilling to test for hard-rock gold deposits in the uplands surrounding the historic placer workings.
"Our goal with Kinross on the Council project is to locate the bedrock source of this alluvial gold," said Gregory Beischer, President and CEO of Millrock. "We are targeting sediment-hosted vein deposits and there are strong indications of such deposits from historic data and from geological and geochemical surveys we conducted over the past two years."
The exploration agreement with Kinross, which was executed late in 2009, covers a 900 sq km area of interest located approximately 100 km by road to the east of Nome, Alaska, where over 300,000 ounces of placer gold have been produced. 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. Kinross may earn a further 20% interest, for a total 75% interest, by expending another US$3 million and by assuming obligations of two underlying agreements on the Council project's area of interest.
One of the underlying agreements concerns the Albion block, consisting of 51 State of Alaska claims covering 2,231 hectares, purchased by Millrock for 500 ounces of gold bullion in annual installments and a minimum US$250,000 in exploration expenditures. The second underlying agreement is with the Bering Straits Native Corporation ("BSNC") concerning leasehold rights Millrock acquired for the Council project, as part of a comprehensive agreement on BSNC's 395 sq km of lands on the Seward Peninsula which calls for certain exploration expenditures, cash payments and royalties as detailed in a 2008 news release (here). Large gold-arsenic soil geochemical anomalies in geologically favourable host rocks with structural controls have been identified on these two land blocks. These anomalies will be the focus of the initial drilling program that has just commenced. Approximately 20 shallow reverse circulation holes will be drilled in the first pass program.
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, eight gold-copper properties in Alaska, and three porphyry copper prospects in Arizona. Its joint venture partners, underwriting some $5 million of exploration in 2010, include some of the leading names in the mining industry: Kinross and Teck in Alaska, Vale and Inmet 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."