Millrock enters Cristo exploration, option agreement
Millrock Resources Inc (C:MRO)
Shares Issued 58,689,695
Last Close 7/21/2010 $0.41
Thursday July 22 2010 - News Release
Mr. Gregory Beischer reports
MILLROCK SIGNS EXPLORATION AGREEMENT WITH BRIXTON METALS FOR MONTE CRISTO AND ST. EUGENE PROPERTIES, ALASKA
Millrock Resources Inc. has reached an agreement with Brixton Metals Corp. for the exploration of Millrock's Monte Cristo and St. Eugene properties (Cristo claim group) in the Kahiltna region of southern Alaska.
A letter of intent has been signed between the parties which gives Brixton the exclusive option to earn a 100% interest in the Cristo claim group in return for a cumulative US$5 million in exploration expenditures, US$350,000 in cash payments, 1.5 million Brixton shares, and 1.5 million Brixton share purchase warrants with an exercise price of $1.00 per share over a four-year term.
The target at Cristo is a large Intrusion-Related gold or porphyry copper-gold deposit. Numerous rusty zones indicative of sulfide mineralization were sampled by Millrock in 2009. Extensive alteration zones with strongly anomalous gold and copper values were detected. Additional work is presently underway to further characterize the alteration and better define the new mineral discoveries. The project is in mountainous terrain hosting receding glaciers. As the glaciers recede, new mineral occurrences are being revealed.
Millrock will be the operator of the Cristo program during the first part of the 3.5 year earn-in period and will deliver an exploration NI-43-101 report by December 31, 2010; thereafter, Brixton will be operator of the Cristo exploration program beginning January 1, 2011.
The Cristo claim group, and other claims which may be staked in a prescribed Area of Interest, are subject to a 2% net smelter royalty (NSR) on gold and 1% NSR on all other metals production in favor of Altius Minerals Corp. ("Altius"), Millrock's partner in a strategic alliance of regional prospecting in Alaska which resulted in the staking of the Cristo property in early 2010. Upon full exercise of the option, Brixton will grant a further royalty interest to Millrock, an NSR of 1.0% on gold and 0.5% on all other metals.
The Kahiltna Terrane, where the Millrock-Altius prospecting alliance has been most active, is a geologic region of south-central Alaska which also hosts the giant Pebble deposit of Anglo-American and Northern Dynasty, as well as Kiska Metals' Whistler copper-gold deposit which is adjacent to Millrock's Estelle gold property being explored in joint venture with Teck American Incorporated ("Teck").
"With our recent exploration agreement with Teck at Estelle, and now the participation of Brixton at Cristo, the Kahiltna Terrane has the look of a regional gold play in the making," said Millrock President Gregory Beischer. "Through its project generation activities Millrock is revealing the tremendous potential of this largely unexplored portion of Alaska's Kahiltna Terrane."
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.
2010 Canjex Publishing Ltd.