Millrock and Alix Announce the Start of Exploration at the Divide Project, Seward Peninsula, Alaska
Millrock Resources Inc. (TSX VENTURE: MRO) (“Millrock” or the “Company”), along with its partner Alix Resources Corp. (Alix) is pleased to announce the commencement of its 2008 exploration program at the Divide Project, near Nome, Alaska.
Millrock will operate the exploration program. The total project budget is $1.5 million, with costs borne equally by the partners. The program will consist of:
– Lithological and structural mapping
– Reverse Circulation drilling of approximately 3,600 meters in 25 to 30 holes
– Trenching and channel sampling
Philip St. George, Vice-President of Exploration for Millrock, states: “The Divide Project offers an excellent opportunity to develop a high grade, near-surface gold resource. There is a lot of gold in this mineralizing system. The key to discovery of an economically exploitable resource at Divide is identifying places where structures intersect brittle rock units conducive to formation of large vein systems and stockworks. The aggressive program we are about to embark upon will determine whether such zones are present on the property.”
The initial target area will be the Stoneman prospect. At this location, visible gold is observed at surface in talus and weathered, broken bedrock. At the Saddle Zone, one kilometer to the southwest, previous trench sampling returned values of 16.21 g/t gold over 16.76 m. However, holes drilled by prior operators immediately undercutting the trench did not provide results of similar magnitude. To resolve the discrepancy, and to expose the mineralization for thorough observation and evaluation, the company will excavate a large trench or open cut. An excavator will be used to strip overburden, and explosives will be used to expose fresh bedrock, and clearly expose the mineralization for channel sampling. The Stoneman and Saddle zones will be undercut with a series of relatively closely spaced reverse circulation drill holes. The objective of this portion of the program is to determine if high grade chutes are present in the vein system, and if so, to delineate the resource. If the results warrant, a bulk sample will be collected in a contingent, late season program. Several holes will be drilled to test a strong soil anomaly between the Stoneman and Saddle zones, and another parallel soil anomaly to the southeast.
The Divide Property is located in the prolific Cape Nome mining district about 45 kilometers north of Nome, Alaska. Access to the property is via the Nome-Taylor highway which crosses the eastern boundary of the 1,424 ha claim block. Millrock can earn a 50% interest in the project from Alix by paying 50% of all costs associated with the Divide Option, and a total of US$500,000 over a five year period. Additionally Millrock will issue 500,000 shares of the Company to Alix. Millrock is the exploration operator.
Underlain by structurally deformed, retrograde greenschist facies metasediments (turbidites and related deep water sediments); the rocks at the Divide Property are of late Proterozoic to Paleozoic age. These same rocks are the source of the alluvial gold deposits of the Nome camp, where approximately five million ounces of gold has been produced by placer mining methods. The Rock Creek Mine, a lode mine currently being commissioned by NovaGold Resources Inc., is located approximately 33 kilometers to the southwest. Gold mineralization at Rock Creek is hosted in a similar geological setting to that at Divide.
Gregory A. Beischer, President & CEO of the Company is the qualified person who prepared or supervised the preparation of the technical information that forms the basis of this news release.
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 three 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.
Contacts: Millrock Resources Inc. Patrick De Witt Manager, Investor Relations (604) 638-3164 (604) 688-9620 (FAX) Website: www.millrockresources.com
SOURCE: Millrock Resources Inc.