Millrock Acquires Option on La Navidad Gold Project and Makes Joint Venture Agreement With Centerra Gold, Sonora State, Mexico
VANCOUVER, BC--(Marketwired - June 13, 2017) - Millrock Resources Inc. (
Gregory A. Beischer, President & CEO commented: "There is at least one known, moderately-dipping, near-surface structure that is reported to host gold over significant intervals. Through drilling, we look forward to verifying the previously-reported historic results and expanding the limits of the reported mineralization. Pursuing this project has been made possible through our ongoing partnership with Centerra".
Gold mineralization at La Navidad is hosted by low-angle faults related to the Magdalena Metamorphic Core Complex. The zone of faults has been traced over a 2.2 kilometer distance and ranges from 300 to 600 meters in apparent, surface width. Sub-parallel shears that trend northwest within an east-west striking structural zone host quartz and calcite veins and stockworks with siderite and hematite. The mineralized structures are enveloped by zones of silicification and hematitic, reddish-stained, altered sedimentary rocks.
Historic reports indicate that twenty-one shallow reverse circulation holes totaling 1,126 meters were drilled in 1996. According to the author of a 1999 report, thirteen of the holes intersected "significant" gold mineralization (Summary Report, La Navidad - Shelly Gold Project, F.M. Johnson, 1999). Table 1 below indicates a selection of the better historic drill results. Drilling done to date did not completely test the target. Millrock believes there is good potential to extend the mineralized zone and to find parallel zones at deeper levels.
Table 1. Selected drill intersections reported by Western Mining from 1996 program.
|Hole||From (m)||To (m)||Interval (m)||Grade Au (ppm)|
Millrock cautions that these drill results are historic and have not been (and cannot be) verified by the qualified person that is responsible for the contents of this disclosure. The results reported in Table 1 are taken from the 1996 report written by F.M. Johnson. While it is known that the drill samples were assayed at a well-known, reliable, laboratory (Bondar -- Clegg of -- at the time -- 130 Pemberton Avenue, North Vancouver, B.C. Canada V7P2R5), the Millrock qualified person has not seen the assay certificates. No drill sample chips, rejects, or pulps were retained by Western Mining from the 1996 drilling program and the qualified person has therefore not viewed or resampled any of the rock drill samples that were assayed. The qualified person has visited the project site, observed vein structures in rock outcrop and old workings and believes that the reported drill intersections are likely to be accurate. The holes were drilled vertically, and therefore the reported intersections are apparent thickness. True width is likely to be approximately 65% of the reported apparent width.
Millrock has an option to purchase a 100% interest in La Navidad from Western. To complete the purchase, US$2,500,000 in option payments to Western may be made over a four-year period. An initial payment of US$125,000 has been made. Three further option payments of US$125,000 each may be made at annual intervals. A final option payment of US$2,000,000 could be made to complete the purchase of the mineral rights. During the option term, at least US$3.0 million must be spent on exploration on La Navidad in order to exercise the purchase option. The first year commitment is US$500,000. Millrock, with Centerra concurrence, may withdraw from the option agreement at any time.
Through its agreement with Millrock, Centerra has the option to earn an 80% interest in La Navidad by funding the all of the financial obligations in the underlying agreement between Millrock and Western. At vesting, a joint venture would be formed. Millrock may participate by contributing its pro-rata share of costs, or it can elect to be diluted to a 2.0% Net Smelter Return royalty.
The technical information within this document has been reviewed and approved by Gregory A. Beischer, President, CEO and a director of Millrock Resources. Mr. Beischer is a Qualified Person as defined in NI 43-101.
About Millrock Resources Inc.
Millrock Resources Inc. is a premier project generator to the mining industry. 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 taken on by most exploration companies. The company is active in Alaska, British Columbia, the southwest USA and Sonora State, Mexico. Funding for drilling at Millrock's exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, Altius, and Riverside.
ON BEHALF OF THE BOARD
Gregory Beischer, President & CEO
Some statements in this news release contain forward-looking information. 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.
"NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE."
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