VANCOUVER, BRITISH COLUMBIA, February 5, 2009 - Millrock Resources Inc. (MRO - TSX:V) ("Millrock" or the "Company") is pleased to announce that it has purchased a 100% interest in the Estelle gold claims from underlying property owners, London-based Hidefield Gold plc., (HIF - AIM), and Mines Trust Co. (MT) a privately held Alaska-based company. The purchase agreement supersedes a prior option agreement between the companies by which Millrock had the ability to earn an 80% interest in the project through cash payments and by funding exploration. The consideration paid for the 100% interest is US$125,000 and issuance of 1.25 million Millrock shares. A 2.5% royalty will be payable upon production. "This is very positive news for Millrock and its shareholders", said Company President & CEO Gregory Beischer. "Our work this past summer demonstrated the tremendous potential for a major gold deposit at Estelle. However, the work commitment and payments to earn 80% were daunting given the prevailing economic conditions. With this transaction, we have eliminated the overhanging US$5 million work commitment and gained the flexibility to bring major gold company partners into the project."
Estelle is located in the Rainy Pass district about 140 kilometers northwest of Anchorage in the Talkeetna Arc, a prolific belt of magmatic and volcanic rocks. The Pebble copper-gold project is situated 250 kilometers to the southwest. Millrock has identified strong indications of a large-scale, disseminated, porphyry-style gold deposit on its claims. These indicators include hydrothermal breccias, quartz stockwork veining with gold mineralization, porphyritic intrusive rocks, widespread hydrothermal alteration and abundant high grade vein-style gold occurrences over a 30-kilometer strike length. Sampling of talus fines and rock at surface indicates two large anomalous zones; Oxide Ridge and Shoeshine. At Oxide Ridge sampling of talus fines has outlined an anomalous zone measuring 200 meters by 300 meters. Porphyritic magmatic rocks with arsenopyrite-bearing quartz stockworks assaying in the 1.0 to 4.0 grams per ton gold range are present within this strong anomalous zone. At Shoeshine the anomalous zone is over 900 meters in length, and 300 meters wide. Numerous rock samples exhibiting porphyry style mineralization commonly contain 1.0 to 5.0 grams per ton gold. An initial round of drilling is justified.
The transaction is in the form of a letter agreement. The parties to the agreement plan to execute a formal purchase agreement by February 17, 2009. Completion of the transaction is subject to TSX Venture Exchange approval. A Director of Millrock is also a principal of MT, and therefore this is a non arm's length transaction as defined by the TSX Venture Exchange. Details of the consideration to be paid are to HIF, US$100,000 and one million Millrock shares with a 1% NSR royalty, and to MT, US$25,000 and 250,000 Millrock shares with a 1% NSR royalty of which half may be purchased by Millrock for US$1 million. A 1% NSR royalty would also be due to International Tower Hill Mines by virtue of the prior option agreement.
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 MILLROCK RESOURCES INC.
Millrock Resources Inc. is a TSX Venture Exchange listed company intent upon the discovery of high value mineral deposits, with a focus on Alaska and Arizona. Millrock currently has four active exploration projects in Alaska, and three in Arizona.
ON BEHALF OF THE BOARD
“Gregory Beischer”
Gregory Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT
Patrick De Witt, Manager, Investor Relations
(604) 638-3164
Toll Free: (877) 217-8978
Millrock Resources Inc.
750 World Trade Centre - 999 Canada Place
Vancouver, BC V6C 3E1
Canada
"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."