Millrock Intersects Intrusion-Related Gold System at Estelle Project, Alaska
VANCOUVER, BRITISH COLUMBIA, November 9, 2011 - Millrock Resources Inc. (TSX-V: MRO) ("Millrock" or the "Company") announced today results from drilling at the Oxide Ridge prospect of the Estelle gold property northwest of Anchorage, Alaska. The work is being managed by Millrock on behalf of Teck American Incorporated ("Teck American"), a subsidiary of Teck Resources Limited ("Teck"), which has the option to earn up to a 65% interest in the project from Millrock.
Hole SE-001 was drilled to a depth of 457.8 m (azimuth 050°, dip -75°) to test an induced polarization chargeability anomaly overlain by a coincident gold-arsenic soil geochemical anomaly. Millrock had previously discovered gold mineralization associated with structures and porphyritic dykes in bedrock at two locations each about 1.5 km away from the drill hole collar. Variably altered magmatic intrusive rock with quartz veins and stockworks were intersected over the entire length of the hole. From 10.18 m to 460.86 m (450.68 m) the hole returned a weighted average of 0.38 g/t Au (171 gram-meters). Most of the mineralization was found from 31.79 m to 397.06 m and returned 0.43 g/t Au over 365.27 (157 gram-meters). The highlights of the composite intercepts using a 0.2 g/t cutoff are summarized in the table below.
Philip St. George, Millrock's Chief Exploration Officer stated: "We have intersected intrusion-related gold mineralization over a significant interval that includes some higher grade intercepts. The challenge now is to find the center of the system that has the grade needed for an economic deposit."
||g x m
* Indicates interval had below cutoff intervals of >3m.
Gold in the core is associated with arsenopyrite, and minor chalcopyrite. Sulfides were seen in narrow veins and veinlets and disseminated in small grains throughout the intrusive rocks. The multitude of vein orientations preclude determination of the true width on any particular intercept.
An annotated photograph depicting the target location can be found at the following link:
A map and cross section representing the drill hole and its results can be found at this link:
Three further holes were drilled on the project to test the Shoeshine, Shadow and Discovery prospects which are located approximately 18 km to the south of Oxide Ridge. Results have been received, are being reviewed and will be published once Quality Control and Quality Assurance ("QAQC)" has been verified.
Along with the drilling program, Millrock's exploration further evaluated and sampled a variety of other potential drill targets on the property. Excellent progress was achieved with the identification of new gold prospects that will be proposed for drilling in 2012.
The property is adjacent to Kiska Metals Corp.'s Whistler copper-gold deposit and in the same assemblage of rocks that hosts Northern Dynasty/Anglo American's giant Pebble copper-gold-molybdenum-silver deposit. Geologic features, and extensive surface geochemical anomalies at Estelle, indicate the potential for large, bulk-minable, reduced-intrusion-related or porphyry-style deposits. Six main zones of large-scale anomalous gold and pathfinder element geochemistry have been identified over the past two years at Shoeshine, Shadow, Train, Oxide Ridge, RPM and Stoney. At the Shoeshine and Oxide Ridge prospects surface mineralization is spatially associated with porphyritic intrusive rocks, quartz stockworks and hydrothermal breccias. At RPM rusty, pyritic, hornfelsed sediments with anomalous gold indicate the potential for an auriferous intrusion at a shallow level. The Stoney prospect is a high-grade, polymetallic vein occurrence located near a strong, circular magnetic high pointing to the possibility of nearby porphyry mineralization.
The 2011 exploration drill program and sampling protocol has been reviewed, verified and compiled by Millrock's geologic staff. All work was supervised directly by Philip St. George, Millrock's Chief Exploration Officer. A rigorous QAQC protocol was used on the project, including insertion of blank, duplicate and standard reference samples per every 20 samples delivered to the assay lab. Drill cores were split lengthwise and half of the core was collected as a sample and placed in a sealed bag. All drill core samples were securely shipped to ALS Chemex Labs in Fairbanks, Alaska for preparation, with fire assay and multi-element ICP analyses done at ALS Chemex Labs facility in Reno, Nevada. Duplicate core samples were collected by quarter-splitting drill cores. Low repeatability of results was obtained from the duplicate sample QAQC work, indicating a possible "nugget effect". Further assaying work will be done to investigate this issue and if there are significant changes, an update of results will be published.
Presently, Millrock owns a 100% interest in the property. The agreement between Millrock and Teck American grants two options, and was initially announced on February 14, 2011 (found here). The first option grants Teck American the right to earn an initial 55% interest in the project by incurring exploration expenditures totaling US$3.6 million. Upon meeting the requirements of the first option, Teck American would then have the right to proceed to the second option that would allow it to earn an additional 10% interest, for a total 65% interest by incurring an additional US$5 million in exploration expenditures and making cash payments to Millrock of US$400,000. Portions of the property are subject to third-party royalties.
The technical information in this news release was reviewed by Gregory Beischer, Millrock's President and Chief Executive Officer, 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 usual financial risk and attendant shareholder dilution taken on by most exploration companies. Millrock currently has twelve active exploration projects, eight gold-copper properties in Alaska, and four porphyry copper prospects in Arizona. With funding primarily coming from its joint venture partners, Millrock plans to carry out exploration programs with a total value of more than US$15 million in 2011. Business partners of Millrock include some of the leading names in the mining industry: Kinross, Teck, Vale, Inmet and Altius, as well as junior explorers Ryan Gold, Brixton Metals and Crescent Resources.
ON BEHALF OF THE BOARD
Gregory Beischer, President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Gregory A. Beischer
Millrock Resources Inc.
750 World Trade Centre
999 Canada Place Vancouver, BC
Some statements in this news release contain forward-looking information, including without limitation statements as to the planned 2012 exploration program and budgets and expenditures for Millrock's exploration efforts at the Estelle project. 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.
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