VANCOUVER, BRITISH COLUMBIA, September 4, 2007 - Millrock Resources Inc. (MRO - TSX:V) is pleased to announce that it has signed a letter of intent to execute an option and joint venture agreement with Liberty Star Uranium and Metals Corp. (Liberty - OTCBB: LBSU) of Tuscon, Arizona, with respect to the Bonanza Hills property in southwest Alaska. Millrock and Liberty will endeavor to conclude a definitive option and joint venture agreement within 30 days of today's date. This transaction is subject to execution of the definitive agreement and TSX Venture Exchange acceptance.
Upon signing of the option and joint venture agreement, Millrock will have the option to secure a 60% interest in the project by expending a total of $3.5 million (all dollar values in this release are in US funds), and by issuing a total of 1 million shares of Millrock over a four year period. The schedule of cash payments and share issues is summarized as follows:
Work CommitmentShares
By August 31, 2007$30,000-
On acceptance by the Exchange:-100,000
By August 31, 2008$220,000100,000
By August 31, 2009$500,000200,000
By August 31, 2010$1,000,000300,000
By August 31, 2011$1,750,000300,000
Total$3,500,0001,000,000
Upon completion of the work commitment and fulfillment of the share issuance, a joint venture will be formed with Millrock owning a 60% interest and Liberty 40%. Millrock will be the initial operator of the joint venture, and will be entitled to a 10% management fee. In the event that either party dilutes to an interest of <10%, that party's interest will be converted to a 10% net profits interest.
The Bonanza Hills are located in southwest Alaska about 160 miles southwest of Anchorage. The property consists of 54 state mining claims covering approximately 13.5 square miles. The property is situated in the Talkeetna Arc, a prolific belt of rocks that is host to a variety of metallic mineral deposits types, including the Pebble porphyry gold-copper-molybdenum deposit. Alluvial gold mining has been intermittently carried out in the Bonanza Hills since about 1913. Liberty has previously reported that high grade gold values occur in quartz - arsenopyrite veins on the property. Additionally, intrusive rocks dated at approximately 64 million years are known to exist on the claims. This age of intrusion is related to gold deposits throughout the state, including Donlin Creek, Estelle, Golden Zone and other deposits. Stream sediment geochemical anomalies have been detected in the vicinity of the intrusive rocks and the high grade vein occurrences. The company is conducting reconnaissance stream sediment and soil sampling and geological investigations to verify the potential for large-scale gold or copper - gold porphyry deposits, and high grade vein-style gold deposits, in anticipation of geophysical surveys and drilling program in 2008.
Additionally, Millrock reports that it has acquired through staking of 124 Alaska state mining claims, another property with similar geological attributes. The claims are located 20 miles to the south of the Bonanza Hills property, and are centered on an anomalous geophysical feature identified by examination of airborne magnetic survey data. The geophysical anomaly may indicate the presence of a porphyry-style deposit. Reports of historic placer gold workings have been made by local residents. Little rock outcrop exposure is present on the property, but intrusive rocks of Donlin Creek age are mapped on adjacent lands. The claims were staked just a few days before Anglo American overstaked portions of the claim group, and a much larger area to the east. Reconnaissance surveys are planned for 2007 with more advanced exploration and drilling in 2008.
This press release has been prepared by Gregory Beischer, Certified Professional Geologist, President and CEO of Millrock Resources Inc. Mr. Beischer is a Qualified Person as defined by NI 43-101, and has approved the information contained in this release.
ABOUT MILLROCK RESOURCES INC.
Millrock Resources Inc. is a TSX Venture Exchange listed company focused on the discovery of large metallic mineral deposits in Alaska. The potential in Alaska has barely been revealed for porphyry gold-copper-molybdenum deposits, intrusive-related gold deposits, sedimentary exhalative zinc-lead-silver deposits, and tin greisen deposits. To date, Millrock has acquired four promising projects, and intends on making further key acquisitions. The company has an active drilling campaign underway at its Divide and Inmachuk projects on the Seward Peninsula in western Alaska.
ON BEHALF OF THE BOARD
“Gregory Beischer”
Gregory Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT
Gregory Beischer, President & CEO
(604) 638-3164
Toll Free: (877) 217-8978
Millrock Resources Inc.
750 World Trade Centre - 999 Canada Place
Vancouver, BC V6C 3E1
Canada
FORWARD LOOKING STATEMENTS
Some statements in this news release contain forward-looking information. 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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