Mining project generator Millrock Resources (CVE:MRO) gained a favourable review in the latest edition of Brien Lundin's Gold Newsletter.
made a lot of money on Millrock when we bought it during the 2008
credit crisis at a fire-sale price. Buying now promises similar
returns," Lundin wrote in the August 2012 edition of the newsletter.
is a premier project generator to the mining industry. In the search
for world-class gold and copper deposits in mineral rich Alaska and
Arizona, 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 and attendant
shareholder dilution taken on by most exploration companies.
company currently has twelve active exploration projects, eight
gold-copper properties in Alaska, and four porphyry copper prospects in
In the newsletter, Lundin said that Millrock has started
its 2012 drilling program at Estelle, "one of the company’s more
promising holdings in Alaska."
Millrock has set up a joint
venture agreement with Teck (TSE:TCK.A) resources to explore this
project for porphyry-hosted gold deposits. The current program will
drill five new holes on the Oxide ridge target, an area of
mineralizationthat yielded long (albeit low-grade) intersections of gold
during last year’s drilling program.
The 1,500-meter program
will seek to outline a bulk mineable, intrusion-related gold deposit on
one of the several geochemical anomalies previously identified at
In addition to Oxide ridge, those targets include Shoeshine, RPM and Stoney.
for the gold-potential of these targets stems from their location
within the same assemblage of rocks that hosts pebble, the vast
copper-gold-moly project in southwest Alaska held jointly by Northern
Dynasty and Anglo American (LON:AAL).
option agreement with Teck allows it to control the cash burn it will
experience during the 2012 campaign at Estelle.
To finance its
portion of this year’s drilling, the junior has borrowed $800,000 from
Teck, via a 6 per cent short-term loan payable at the end of 2012. If
Millrock elects to maintain its current 45 per cent interest in the
project, it will repay that loan if it opts not to repay the loan, the
junior’s interest in Estelle will drop to 35 per cent.
The Gold Newsletter is the oldest and most respected advisory on precious metals and mining stock investing.