News Release - NR #09-04
Millrock Announces Purchase of 100%
Interest in Estelle Gold Claims, Alaska
January
22, 2009
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
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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