Millrock Announces Acquisition of the South Estelle Gold Property in Alaska
Wednesday April 9, 10:48 am ET
ca.us.biz.yahoo.com
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Apr 9, 2008 -- Millrock Resources Inc. (CDNX:MRO.V - News) is pleased to announce that it has struck an agreement with International Tower Hill Mines Ltd. (CDNX:ITH.V - News) to acquire its rights to the South Estelle gold property 160 km northwest of Anchorage, Alaska in the Rainy Pass district. The agreement is subject to TSX Venture Exchange acceptance. Consisting of 168 claims covering 10,198 hectares, the property is adjacent to Kennecott Corporation's recently announced Whistler copper-gold discovery, now managed by Geoinformatics. The South Estelle property hosts high grade gold veins over most of its 20 kilometer length. Millrock is targeting bulk tonnage intrusive-related gold deposits at this location.
Philip St. George, Millrock Vice-President of Exploration noted, "What I observe at Estelle is reminiscent of the features of the Donlin Creek deposit, which now is known to contain more than 30 million ounces of gold. The abundance of high grade veins over a broad area, the presence of hydrothermal breccias, quartz stockwork veining, porphyritic intrusive rocks and widespread hydrothermal alteration are all indicators of a large scale deposit."
"ITH's portfolio rationalization has resulted in a great opportunity for Millrock. We plan on drilling in July," said Company President, Gregory Beischer.
The deal between ITH and Millrock is an outright purchase of ITH's rights in an underlying agreement. Consideration is 650,000 Millrock shares. ITH will retain a 1% NSR royalty. By virtue of the purchase, Millrock will have the option to earn up to an 80% interest in the property from underlying property owners Hidefield Gold Plc (AIM: HIF) and Mines Trust (a private Alaska firm). Millrock can earn a 51% interest by expending US$2 million by the end of 2009, a 70% interest by expending a cumulative US$5 million by the end of 2011, and 80% by tabling a positive feasibility study. A further 2.5% NSR royalty may become payable to Hidefield / Mines Trust under certain conditions.
The Estelle property hosts high grade gold veins spanning most of its length and width (20 km by 5 km). Widespread anomalous gold values in stream sediments brought initial attention to the area. Two of the most interesting prospects on the property are the Shoeshine and Train showings. These prospects have produced numerous high-grade gold values as outlined in the table below. These results were obtained by Hidefield and ITH in 2006 and 2007.
Shoeshine Train
Average 5.29 g/t 7.61 g/t
Maximum 238.0 g/t 56.9 g/t
Minimum 0.09 g/t 0.01 g/t
No. of samples 58 83
Standard deviation 9.36 8.33
note - all samples above 34.28 g/t Au (1 oz/t) were cut to 34.28 g/t.
The gold veins alone are significant targets, but at the Shoeshine prospect, the veins are spatially associated with porphyritic intrusive rocks, quartz stockworks and hydrothermal breccias. These features indicate the potential for a large, bulk minable, intrusive-related or porphyry style deposit.
Gold mineralization at the Rainy Pass district is associated with composite intrusive complexes of Cretaceous age (approximately 65 million years old). The geologic environment is similar to that hosting many major copper-gold and gold porphyry systems found throughout the world and within Alaska's productive Tintina Gold Belt where Barrick's Donlin Creek gold (approximately 70 million years old) and The Pebble Partnership's Pebble copper-gold projects are currently under development.
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. Mr. Beischer 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 five active exploration projects in Alaska, and two in Arizona.
ON BEHALF OF THE BOARD
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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:
Millrock Resources Inc.
Patrick De Witt
Manager, Investor Relations
(604) 638-3164
(604) 688-9620 (FAX)
Website: millrockresources.com
Source: Millrock Resources Inc. |
