Millrock
and Vale Commence Drilling at Galiuro Copper Project,
Arizona
Millrock Resources Inc. (MRO - TSX:V)
("Millrock" or the "Company")
announced today that drilling has re-commenced at the Galiuro
project in Arizona. Vale Exploration Canada Inc. ("VEC"), a
wholly-owned subsidiary of Vale S.A. ("Vale"), is funding the work as
part of an earn-in agreement signed in 2009.
This phase of the drilling
program will focus on the Fourmile target. A
circular magnetic feature ringed by a strong conductive zone as identified by a
ZTEM airborne geophysical survey is targeted. Intense argillic
alteration is known from rock exposures and prior drilling on the west side of
the structure. Millrock has pre-collared the
hole to a depth of 453 m using a reverse circulation drill. At 427 m
leach cap rocks with abundant hematite in Laramide -
age andesite and quartz porphyritic intrusive rocks were identified in drill
cuttings. The leach cap indicates possible proximity to a porphyry copper
deposit. Depending on results, the hole may be drilled to 2,000 m
depth. A second hole may be drilled contingent upon results and budget.
The target at the Galiuro property is a large
porphyry copper +/- gold deposit hidden beneath alluvium and Tertiary volcanic
cover, similar in magnitude to the nearby Resolution deposit, which is being
developed by Rio Tinto and BHP Billiton. The property is situated at the
intersection of the Resolution and San Manuel / Kalamazoo porphyry copper
trends. Because of the Tertiary volcanic cover, little exploration work
has been previously done by other companies. Through careful geological mapping
in combination with airborne magnetic and ZTEM geophysical surveys, Millrock has identified numerous targets that may represent
porphyry deposits. Prior drilling by Millrock
and VEC resulted in the discovery of porphyry copper mineralization and
alteration in Cretaceous-aged rocks hidden beneath Tertiary volcanic cover
rocks.
VEC has the option to earn
a 60% interest in the project through exploration expenditures totalling US$3.5 million and payments of US$850,000.
Upon completion of the current drill program, VEC will have expended at
least US$3.5 million and will be in a position to exercise its option if it
makes the remaining necessary cash payments. VEC may earn an additional
10% interest, for a total of 70%, by funding a feasibility study.
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
is on track 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: VEC, Kinross, Teck, Inmet and Altius, as well as junior explorers Ryan Gold, Brixton
Metals and Crescent Resources.
About
Vale S.A.
Vale is the world's second
largest metals and mining company by market capitalization with its
headquarters in Brazil. Vale reported revenues of US$46.481 billion and net
earnings of US$17.264 billion as of December 31, 2010. Vale is committed to the
pursuit of sustainable growth by operating with respect for the natural
environment and being an ethically and socially responsible company.
ON BEHALF OF THE
BOARD
"Gregory Beischer"
Gregory Beischer, President
& CEO