Millrock and Kinross in agreement over Alaskan mining properties, drilling set for July 2010

Millrock Resources (TSX-V: MRO) and Kinross Gold Corp (TSX: K, NYSE: KGC) are set to enter an exploration agreement over a 900 sq km (square kilometre) area of interest including Millrock’s Albion and Council properties and other mining claims.

The area is located on the Steward Peninsula in western Alaska some 100 km to the east of Nome in the Council mining district.

“Millrock is pleased to expand its business relationship with Kinross. Excellent gold targets exist on the properties and we look forward to an initial drilling program in 2010,” said president and chief executive of Millrock, Gregory Beischer.

Millrock is in the third year of an agreement on the Council land block with the Bering Straits Native Corporation, which gives it the right to earn a 100% leasehold interest in the property. The company has simultaneously announced a separate option agreement over the Albion property, which enables it to earn a 100% interest in the claims.

Surrounding lands have been staked by Millrock to form a large land package covering the upland lode source areas.

With this exploration agreement, Kinross can earn a 55% JV (joint venture) interest in Millrock’s properties, and any other properties secured by the companies in the area, by incurring exploration expenditures of US$3 million and paying Millrock a total of US$260,000. The initial cash payment is US$65,000 and the minimum 2010 exploration expenditure is US$0.5 million. Kinross has the right to up its interest to 75% by contributing an additional US$3 million in exploration expensidures.

Under the terms of the deal, Millrock can secure further financing via a placement of shares worth C$250,000 based on the stock’s 20 day market price average to Kinross. The company will operate the project for three years and thereafter at Kinross’ discretion.

Ophir Creek and the surrounding tributary creeks which comprise the Council Mining District have produced in excess of 0.5 Moz (million ounces) of placer gold.

The Albion geochemical anomaly measures 900 metres by 2,000 metres and contains strong gold and pathfinder elements, Millrock said in the statement, adding that a parallel structure and soil geochemical anomaly of even larger proportion exists to the northeast on the Bering Straits Native Corporation Council land block.

Millrock and Kinross plan to do an initial drill test of the geochemical anomalies in summer of 2010.

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