Tuesday, 14 August 2012

Millrock Resources gets favourable mention in Brien Lundin newsletter

Mining project generator Millrock Resources (CVE:MRO) gained a favourable review in the latest edition of Brien Lundin's Gold Newsletter.

"We 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.

Millrock 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.

The company currently has twelve active exploration projects, eight gold-copper properties in Alaska, and four porphyry copper prospects in Arizona.

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 Estelle.

In addition to Oxide ridge, those targets include Shoeshine, RPM and Stoney.

Optimism 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).

Millrock’s 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.

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