Millrock Enters Into Exploration Agreement Concerning Apex Gold Project, Southeast Alaska
12 August 2021 - 2:30PM
Millrock Resources Inc. (TSX-V: MRO, OTCQB: MLRKF) ("Millrock" or
the “Company”) is pleased to announce that it has entered into an
agreement with Coeur Explorations, Inc., a wholly-owned subsidiary
of Coeur Mining, Inc. (“Coeur”), concerning the Apex gold project
in Southeast Alaska. The project is located on Chichagoff Island,
three kilometers north of the village of Pelican and 70 kilometers
southwest of Juneau, Alaska.
Millrock President & CEO Gregory Beischer commented: “We are
pleased to enter into this agreement with Coeur Explorations and
will work diligently with their exploration team to explore the
claims. From historic documents, we know that high-grade gold ore
was previously mined, but there has never been a single exploratory
hole drilled. It seems likely that the known high-grade
gold-bearing quartz veins will continue along strike and in the
down-dip direction. The claims have been completely dormant since
the 1980s. We’ll start with surface geochemical sampling and
detailed structural mapping this year and look to drill in
2022.”
The Apex project targets high-grade, mesothermal, gold-bearing
quartz vein deposits. The claims cover the former-producing Apex
and El Nido gold mines which operated intermittently from the 1920s
through to the 1940s and reportedly produced approximately 34,000
ounces of gold by underground mining methods. Nearly 1,200 meters
of workings on four levels were used to extract ore (United States
Geological Survey Alaska Resource Data File). Ore was hand-cobbed
and milled on site. Surface exploration was done by WGM Inc. in the
1980s, but no drilling was done and the property has been dormant
since. Millrock secured an option on the core claim group in 2016
from Apex El Nido Gold Mines Inc. Subsequently, Millrock staked
surrounding lands, compiled information, and secured drilling
permits. At surface, above the caved portal to the Apex Mine, a
swarm of quartz veins can be observed over a width of more than 200
meters. Within the swarm, four thicker veins were the subject of
the historic mining efforts. Geological and geochemical features
suggest the vein system has continuity along strike to the
northeast beneath Cann Creek, toward the tidewater of Lisianski
Inlet, two kilometers away. The gold-bearing vein system has never
been drill tested along strike or below the historic workings.
Figure 1. Apex Gold Project
Location
Map.https://www.globenewswire.com/NewsRoom/AttachmentNg/5ef1f9cf-74b6-4233-a23c-384f049fd52e
Under the agreement, Millrock will assign its rights under the
existing option agreement with Apex El Nido Gold Mines to Coeur
Explorations. Coeur Explorations will be responsible for making
cash payments and funding exploration expenditures to keep the
option agreement with Apex El Nido Gold Mines in good standing.
Millrock will execute exploration under a services agreement on
behalf of Coeur. Coeur Explorations may determine not to proceed to
exercise the option at any time, but if it makes all the payments
and expenditures, it will vest with a 100% interest in the
underlying claims. Upon exercising the option to purchase the Apex
El Nido Gold Mine claims, Millrock will also transfer the claims it
owns outright to Coeur Explorations, and the entire project will
become subject to a net smelter returns (“NSR”) royalty in favour
of Millrock. The royalty payable is a 2.5% NSR with an advanced
minimum royalty (“AMR”) provision. Coeur Explorations may reduce
the NSR to 1.0% by paying Millrock US$3.0 million. The initial AMR
payment will be US$50,000 and will increase by US$50,000 annually
until production occurs. AMR payments are deductible from NSR
payments. The property will revert to Millrock in the event that
Coeur elects to discontinue AMR payments.
Typical of Southeast Alaska, the terrain is steep and
challenging, as pictured in Figure 2. The former producing Apex and
El Nido mine entries are at tree level, approximately 360 meters
above sea level. A soil sampling crew has been mobilized to the
project and is presently working out of accommodations in Pelican,
using boat access. The goal of the program is to trace the
mineralized structure and refine vein locations in anticipation of
a 2022 drilling program.
Figure 2. Apex Gold Project
Terrain.https://www.globenewswire.com/NewsRoom/AttachmentNg/c231d6de-e506-4689-8129-1415b3c07105
Qualified PersonThe scientific and
technical information disclosed within this document has been
prepared, 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
recognized as the premier generative explorer in Alaska, holds
royalty interests in British Columbia, Canada, and Sonora State,
Mexico, is a significant shareholder of junior explorer ArcWest
Exploration Inc. and owns a large shareholding in Resolution
Minerals Limited. 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: Coeur Explorations, EMX
Royalty, Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet
and, Altius as well as junior explorers Resolution, Riverside,
PolarX, and Felix Gold.
ON BEHALF OF THE BOARD“Gregory Beischer”Gregory
Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT:Melanee
Henderson, Investor RelationsToll-Free: 877-217-8978 | Local:
604-638-3164Twitter | Facebook | LinkedIn
Some statements in this news release may contain forward-looking
information (within the meaning of Canadian securities legislation)
including without limitation the intention to mount further
exploration including drilling in 2022. 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.
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