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News Release March 3, 2009
Millrock Announces Agreement with
Vale Exploration Canada Inc., Galiuro Copper-Gold Project, Arizona
VANCOUVER,
BRITISH COLUMBIA, March 3, 2009- Millrock Resources Inc. (MRO - TSX:V)
("Millrock" or the "Company") is pleased to announce that
it has executed a letter agreement with Vale Exploration Canada Inc.
("VEC"), an affiliate of Vale Inco Limited, each a wholly-owned
subsidiary of Companhia Vale do Rio Doce ("VALE") (NYSE: RIO)
concerning Millrock's Galiuro project north of Tucson, Arizona. VEC will have
the option to earn a 60% joint venture interest in the claim group by making
cash payments and exploration expenditures.
"Millrock
is very pleased to have made this arrangement with VALE. Under challenging
economic conditions, this agreement allows Millrock to create shareholder
value without diluting its capital structure. Millrock has the early-stage
exploration expertise, but should a discovery be made, VALE will have the
financial and technical horsepower to bring a giant copper-gold porphyry to
production. It's a good fit for both companies." commented Company
President & CEO Gregory Beischer.
Under the
agreement VEC has committed to funding a minimum of US$250,000 in exploration
programs prior to December 31, 2009 and may elect to fund a further
US$250,000 prior to December 31, 2009 and a further US$3,000,000 over the
subsequent three years through to December 31, 2012. VEC has also made a cash
payment of US$75,000 on execution of the agreement and may elect to make
additional cash payments totaling US$775,000 over three years to earn the
option to acquire an undivided 60% participating interest in the underlying
claims. Thereafter further expenditures will be funded by the parties
pro-rata in accordance with their respective participating interests. VEC
also has the option to acquire an additional 10% participating interest in
the claims if it completes a favorable feasibility study. Millrock will be
the exploration manager until December 31, 2010 and thereafter may continue
as manager at VEC's discretion.
The target
at the Galiuro project is a giant, high-grade porphyry copper - gold -
molybdenum deposit that can be mined by open pit or underground block caving
mining methods. The project is situated 80 kilometers southeast of the
Resolution deposit, which is currently being drilled off by Rio Tinto, and is
reported to contain a resource of one to two billion tons grading between 1%
and 2 % copper. The Galiuro claim block is situated on the San
Manuel-Kalamazoo and Copper Creek porphyry copper trends. The Copper Creek
mine is situated just to the west of the claim block and a very large,
intense alteration zone occurs to the east. The claims are largely underlain
by Tertiary-aged post mineralization volcanic rocks. Magnetic data suggests
that intrusive complexes occur beneath the volcanic cover. Epithermal copper
mineralization occurs along deep seated structures within the volcanic rocks
on the property, and may have be related to older Laramide-aged porphyry
mineralization at depth.
To
determine whether a major porphyry copper-gold deposit is present, a
comprehensive, sequential exploration program is planned. Geological mapping,
airborne magnetic and electromagnetic surveys, and ground-based geophysical
surveys will be carried out prior to an initial drilling campaign. Work will
begin in early March 2009.
Located in
southeastern Arizona the property is 16 kilometers east of Mammoth, and 80
kilometers northeast of Tucson Arizona. Topography is steep and rugged at
elevations ranging from 4200 to 5500 feet. Paved highway 77 passes 18
kilometers west of the claim block and access to the edge of the claim block
is provided by four wheel drive access.
Gregory
Beischer, the Company's President and Chief Executive Officer and a Qualified
Person as defined by NI 43-101, prepared and approved the information
contained in this release.
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 revenues
of US$ 33.1 billion and net earnings of US$ 11.8 billion as of December 31,
2007. 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.
About
Millrock Resources Inc.
Millrock
is a 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. Millrock currently has four active exploration
projects in Alaska, and three in Arizona.
ON BEHALF
OF THE BOARD
"Gregory
Beischer"
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.
FOR
FURTHER INFORMATION PLEASE CONTACT
Patrick De
Witt, Manager, Investor Relations
(604) 638-3164
Millrock
Resources Inc.
750 World Trade Centre
999 Canada Place
Vancouver, BC V6C 3E1
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT
RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF
THIS RELEASE.
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