Home / Mining Company News Releases (Unreviewed) / Millrock Enters Option to Purchase Apex El Nido Gold Mine, Alaska

Millrock Enters Option to Purchase Apex El Nido Gold Mine, Alaska

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 28, 2015) – Millrock Resources Inc. (TSX VENTURE:MRO) (“Millrock”) announces that it has entered into an agreement under which it has been granted the option to purchase the former-producing Apex El Nido gold mine located approximately 110 km southwest of Juneau, Alaska on Chichagoff Island near the village of Pelican. The option was granted by the property owner, Apex El Nido Gold Mines, Inc. Exercisable until August 1, 2018, the option can be maintained by making annual payments of US$1,000 per year and by paying the annual federal U.S. claim rentals on behalf of the owner, which presently total US$4,500 per year. Millrock may purchase a 100% interest in the property (free of any royalty) at any time until August 1, 2018. However, the purchase price will increase over time in accordance with the following schedule.

Date of Notice of Option Exercise Purchase Price
No Later than March 31, 2016 $100,000
From April 1, 2016 until August 1, 2016 $200,000
From August 2, 2016 until August 1, 2017 $400,000
From August 2, 2017 until August 1, 2018 $500,000

The gold deposit at the project site was discovered in 1919. It is a high-grade mesothermal gold quartz vein system. The U.S. Bureau of Mines reported in 1982 that historically, 17,000 ounces of gold was produced from ore grading 1.4 ounces of gold per ton. In the same report the author indicated a remaining resource of 25,168 ounces of gold in rock that grades 0.945 ounces per ton gold. (Source: Kimball, A.L., 1982, Mineral land assessment of Yakobi Island and adjacent parts of Chichagof Island, southeastern Alaska: U.S. Bureau of Mines Open-File Rpt. MLA 97-82, 199p. + 11 p.). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and Millrock cannot presently verify the relevance or reliability of the historical estimate. Millrock is not treating the historical estimate as current mineral resources or mineral reserves. Core drilling from surface, or from rehabilitated underground workings will be necessary to determine the significance of the historical resource. A qualified person has not verified the US Bureau of mines data disclosed in this news release.

The only modern exploration work done on the property was executed by contractor WGM for Echo Bay Mines in the early 1980s. Surface geological mapping and geochemical surveys were completed and targets developed but no drilling was done. This work demonstrated that a vein swarm can be traced for over 500 m along strike and at places is over 200 m across. The mineralized zone contains mesothermal quartz veins and fracture fillings in schist surround by fine-grained sericite alteration envelopes. Gold mineralization occurs as coarse, free gold associated with arsenopyrite and pyrite along with lesser amounts of chalcopyrite, galena, sphalerite, and tennantite. Mineralization remains open along strike and at depth. It has never been explored by surface or underground drilling.

Millrock intends to review existing data and the drilling plan developed previously by Echo Bay Mines, and formulate its own exploration plan, and will seek joint venture partners to drill and delineate the deposit, and further develop it if warranted.

The technical information within this document has been reviewed and approved by Gregory A. Beischer, President, CEO and a director of Millrock. 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. In the search for world-class metallic mineral deposits in mineral-rich Alaska, southwest USA, and Mexico, 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. Millrock currently has twenty-two active exploration projects, eight gold, copper and zinc properties in Alaska, a uranium project in New Mexico, and twelve gold, silver and copper projects in Mexico. Funding for drilling at Millrock’s exploration projects primarily comes from its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: First Quantum, Teck, Kinross, Vale, Inmet and Altius.

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.”

Millrock Resources Inc.
Gregory A. Beischer
(604) 638-3164
(907) 677-3599 (FAX)
www.millrockresources.com

 

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