Millrock and Alix Announce the Start of Drilling at the Divide Project, Seward Peninsula, Alaska, Complete Agreement
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Aug. 5, 2008) – Millrock Resources Inc. (TSX VENTURE:MRO) (“Millrock”, or the “Company”), along with its partner Alix Resources Corp. (“Alix”) is pleased to announce that drilling has been initiated at the Divide Project, north of Nome, Alaska. Additionally, the companies report that they have executed a definitive option and joint venture agreement following on from a Letter of Intent announced August 16, 2007.
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. 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.
Total drilling of 3,300 meters in 25 reverse circulation drill holes is planned. Maximum hole depth is approximately 130 meters. Primary targets are located at the intersection zones of the two main structural trends in the Stoneman, Saddle and South zones. The objective is to identify and build a high grade gold resource on the property. Millrock, as operator of the exploration program, has recently carried out an extensive program of lithological and structural mapping, and excavated a series of trenches to expose gold bearing vein systems at surface. The work has revealed a strong east-west structurally controlled vein system that intersects the northeast trending system which has been the focus of most of the prior exploration efforts. Additionally, a flat lying structural trend with strong arsenopyrite mineralization has been identified. Many hundreds of chip samples have been collected from 23 trenches that were excavated in June and July to expose the east – west vein systems. Assays from the chip samples are awaited. This work follows on from three core holes drilled by Millrock and Alix in 2007, in which strong results were obtained. These results are:
– 8.99 meters grading 1.5 g/t gold in hole DIV-07-03
– 3.05 meters grading 10.0 g/t gold in hole DIV-07-04
– 8.23 meters grading 5.8 g/t gold in hole DIV-07-05
To further resolve the structural controls on the gold mineralization, a large trench will be blasted. The trench work is intended to expose known mineralization at the Stoneman prospect, where abundant visible gold has been observed at surface. If warranted, a bulk sample will be collected.
Millrock can earn a 50% interest in the project from Alix by paying 50% of all costs associated with the Divide Option, which is an agreement between Alix and the underlying property owners David Lajack et. al. Millrock will pay a total of US$490,000 over a five year period. Additionally Millrock will issue 500,000 shares of the Company to Alix. Millrock is the exploration operator. These terms vary slightly from the terms contained in the previously announced Letter of Intent. The six month anniversary payment was voluntarily reduced by the underlying property owner and a correction to the announced share issuance schedule was made.
The cash and share issuance schedule is:
__________________________________________ Cash______Shares ———————————————————– On acceptance by the Exchange________ $__ 7,500______50,000 Six month anniversary____________________12,500______50,000 One year anniversary____________________ 45,000____ 150,000 Two year anniversary____________________ 75,000____ 250,000 Three year anniversary__________________125,000__________ – Four year anniversary__________________ 225,000__________ – ———————————————————– TOTAL________________________________ $ 490,000____ 500,000 ———————————————————–
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.
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