General Precious Metals
Millrock Resources (TSX-V: MRO)(OTC: MLRKF) CEO Greg Beischer on Drilling for a Gold Discovery at 64North Gold Project Next to Pogo Mine
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Millrock Resources, Mr. Greg Beischer. Greg, great to have you back on. How are you today?
Greg Beischer: Hi, Gerardo. Doing very well, thank you. Full steam ahead at Millrock in Alaska. That's for sure.
Gerardo Del Real: Well, let's get right into it. We know the markets are a bit tough. We know it's the summer doldrums. We know people are out golfing, and vacationing, and enjoying time away from taking the kids to school, and doing all the things that come with the school year, if you have kids, and if you're lucky enough to be able to travel this summer. But, as a result, there are a lot of bargains in this space. Millrock has drifted lower, but let's be absolutely frank, you've been very, very good at vending in and rolling in high-quality projects and then finding partners to fund the exploration. But the majority of the people that are invested in Millrock resources are looking for a significant discovery at the 64North gold project in Alaska, which of course is joint ventured with your partner Resolution Minerals, which has elected to continue sole funding exploration to earn 51%. I am thrilled to hear that drilling has now commenced at a new target, and I would love some context on that target.
Greg Beischer: Yeah, sure thing. Yeah, the markets are a little bit frustrating. This is really a payoff year for Millrock. We've spent a couple of years building on this project, and our work around the Fairbanks district just a bit to the north as well. And we're going to be doing an awful lot of drilling. It's already in progress at both projects. And I'm particularly excited about the Resolution Minerals 64North drilling at the Tourmaline Ridge prospect, just to the west of the Pogo gold mine. We've done some drilling in that area previously, not too far away. We now know that we intersected the right structure that is an extension of the Pogo mine, but there was no real gold in the cores we drilled over the last two years. But I think we've honed in on it now, we've got gold at surface both in bedrock and soil. We know that the structure's there and that it's giving off gold. And so we think we're in the right spot now. The first hole's underway, in fact, nearing completion. So a pretty exciting time for us.
Gerardo Del Real: So again, just for the context there, exploration in a perfect world, you'd do some great quality field work and it immediately pays off. We know, in this business, that's the exception, definitely not the rule. But you did learn that you have the right structure and you feel, I don't want to say confident, but you got to be excited to be able to know that you're in that structure and then to have gold at surface and to be putting a drill bit there.
Greg Beischer: You bet. Yeah. It's always best to be optimistic in this business, but not overconfident. We did do some good work and we did hit some really interesting looking rocks two years ago, but the gold wasn't there. But I think we're on it this time. Exploration's an iterative process. It takes time to put all the pieces of the puzzle together, all the layers of evidence. I think we've got all the evidence in this case.
Gerardo Del Real: Resolution is funding the exploration. I mentioned that it's elected to earn a 51% interest. They're going to do that by continuing to explore and obviously making further share and cash payments to Millrock. Which of course provides that upside to shareholders, not just in the remaining 49% interest, but in the share and the cash payments. Correct?
Greg Beischer: You bet. I think the markets have gone soft, but very, very fortunately both of our main partners for this summer's work raised their money early in the year. And so they're very well-funded. Our exploration budget between those two companies, they're paying for the work, it's close to 8 million US dollars worth of drilling work. And it's a lot of holes, it's a lot of chances to make discovery. And especially since given the quality of the gold targets we're drilling.
Gerardo Del Real: Well, that's good to hear. With inflation concerns, I know it's been tough to secure drill rigs and competent teams that can get out there and do the work at a decent price. The dollar index being at 108 does not help matters any. It's very, very encouraging to hear that there's a drill turning, that it's partner-funded exploration, and that Millrock shareholders still have significant, significant upside from that 49% interest that it retains. Is there anything else to add? You mentioned Fairbanks, and you mentioned more drilling here in the second half of 2022. Can you just provide a brief update there?
Greg Beischer: Sure. Our partner, Felix Gold, has been going great guns in the Fairbanks area. We've sold those projects for shares in Felix Gold, the substantial number of them. And if they make a discovery, the price of those shares is going to go way up. That should increase Millrock's share price and, of course, then we could be able to monetize those shares by selling them and making a great profit for our shareholders. Not to mention that there's royalties attached to all the projects in the Fairbanks area that Felix is operating on. And there's also advanced minimum royalty streams associated with those royalties. So we think we've got a great project there and a great cash flow potential for Millrock.
Gerardo Del Real: I love the business model. I love how you've executed it. I'm rooting for a gold discovery. And I'm hoping to have you back on here to talk about that soon, Greg. Thank you so much for your time today.
Greg Beischer: Thank you, Gerardo. I really think this is the payoff year. It's one of the best chances we've ever had. And so shareholders would do well to average down, if they’re existing shareholders, or pick up a few at this low price of 5 cents a share.
Gerardo Del Real: Well said. Be safe out there. Thank you.
Greg Beischer: All the best. Thank you. Bye.Click here to see more from Millrock Resources Inc.