Millrock, Valdez complete Bluff project JV agreement
Ticker Symbol: C:MRO C:VAZ
Millrock, Valdez complete Bluff project JV agreement
Millrock Resources Inc (C:MRO)
Shares Issued 46,863,744
Last Close 4/29/2010 $0.33
Friday April 30 2010 - News Release
Also Valdez Gold Inc (C:VAZ) News Release
Mr. Gregory Beischer of Millrock Resources reports
MILLROCK FINALIZES OPTION AGREEMENT WITH VALDEZ; EXPLORATION OF BLUFF GOLD PROSPECT, WESTERN ALASKA, SET TO COMMENCE IN JUNE
Millrock Resources Inc. has finalized an option-to-joint-venture agreement with Valdez Gold Inc. to explore the Bluff gold prospect on the Seward Peninsula of western Alaska. Details of the preliminary letter of intent with Valdez were announced in Stockwatch on Dec. 22, 2009.
The agreement grants Valdez the opportunity to earn an initial 55% interest in the Bluff project by spending US$3.0 million in exploration, making option payments of US$300,000, and issuing 900,000 shares of Valdez to Millrock prior to December 31, 2012. Valdez can earn an additional 20% for a total 75% interest by making additional exploration expenditures of US$3.0 million, further option payments of US$600,000, issuing 1.1 million additional shares of Valdez to Millrock over three years, and by meeting the obligations of lease agreements with Bering Straits Native Corporation and White Mountain Native Corporation.
With signing of the definitive agreement, the partners are now planning the 2010 exploration program to commence in June. The project will be operated by Millrock in close consultation with Valdez. Plans for the program include 5,000 metres of reverse circulation drilling designed to expand known mineralized zones and test other targets on the property.
Bluff is located approximately 80 km east of the town of Nome, Alaska on the south coast of the Seward Peninsula, on Norton Sound of the Bering Sea. A state-maintained road leads to within 18 km of the property. Bluff is 24 km east of the Big Hurrah gold deposit, which NovaGold is considering for production and processing at the Rock Creek Mine near Nome, Alaska. While there is no certainty that a similar deposit will be discovered at Bluff, Novagold reports a Probable Reserve of 1,193,000 t grading 4.82 g/t gold (185,000 ounces of gold) and an Indicated Resource of 887,000 t at 2.68 g/t gold (76,400 ounces of gold) (NovaGold Technical Report - Rock Creek and Big Hurrah Project, February 1, 2008)
At Bluff, structurally controlled gold mineralization occurs within a 6.4 km long, arcuate band of schistose rocks near a contact with marble. Drilling by BHP in the late 1980s identified three zones of mineralization occurring in low-angle structures interpreted to be thrust faults. The zones contain several significant intersections including 5.48 g/t gold over 10.9 meters, 4.19 g/t gold over 4.5 meters, and 1.93 g/t gold over 16.3 meters. Located at tidewater, a placer deposit that is thought to have produced over 100,000 ounces of gold in the early 1900s is located just downstream from the known lode mineralization in the shallow marine environment.
Millrock carried out exploration in 2008. Geological mapping and soil sampling identified new zones of mineralization, and identified high priority drill targets. Drilling and resampling of BHP core confirmed the presence of gold mineralization. Significant drilling is required on all zones to establish and delineate gold resources. There are numerous drill targets adjacent and down-dip from known gold zones and untested surface geochemical anomalies. A complete report documenting prior exploration work was prepared for Millrock by independent geologist Donald Stevens of Anchorage, Alaska and has been filed on SEDAR: Bluff Gold Prospect, National Instrument 43-101 Technical Report June 5, 2009 Prepared by Donald L. Stevens Ph.D.
The lands upon which Bluff is located are owned by the Bering Straits Native Corporation and are leased to its wholly owned subsidiary Golden Glacier Inc. Millrock has an option to earn a 100% leasehold interest in the lands from Golden Glacier.
Completion of the transaction contemplated in this news release is subject to certain conditions including, without limitation, the receipt of all necessary regulatory and third party approvals including that of the Bering Straits Native Corporation and Golden Glacier Inc.
The technical information in this news release was reviewed by Gregory Beischer, Millrock's President and CEO, a Qualified Person as defined in NI 43-101.
2010 Canjex Publishing Ltd.