Millrock Resources Inc. announces that it has entered into an agreement under which it has purchased the Batamote copper project from Minera Teck S.A. de C.V., ultimately a subsidiary of Teck Resources Limited.
The property is located approximately 100km northeast of the city of Hermosillo. It is situated between the La Caridad and the Cananea porphyry copper - molybdenum mines, both of which are owned by Grupo Mexico. The property, which is in close proximity to Millrock's Rio Sonora and Los Cuarentas copper projects, is comprised of three mining concessions that cover a surface area of 5,796 hectares.
The geological setting at Batamote is very similar to that at La Caridad. The property overlies a multiphase intrusive complex at the western margin of a large Laramide-aged batholith. An extensive three kilometer by six kilometer alteration zone is present. Exploration by the prior owners identified three main areas of mineralization named El Choclo, Bata Sur and Arreadero. Highly anomalous copper values over significant widths have been identified in drilling. Of particular note is an intersection of 136m @ 0.26% Cu at Bata Sur.
Millrock President & CEO Gregory Beischer commented, "Along with our previously acquired Rio Sonora and Los Cuarentas claim blocks, this property acquisition gives Millrock an outstanding land position in the prolific Cananea - La Caridad belt. We have assembled this highly prospective land package at a low cost."
Under the terms of the agreement Millrock will issue to Teck, upon approval by the TSX Venture Exchange, 109,890 Millrock shares. Minera Teck will retain a 0.5% NSR royalty as consideration for a 100% interest in the property. In the event that Millrock sells or options the property to a third party in the next year, Minera Teck will be entitled to 30% of the sale proceeds. If a sale to a third party occurs in the subsequent year, Minera Teck will be entitled to 20% of the sale proceeds. As part of the agreement, Millrock will also receive a copy of exploration data concerning the Los Cuarentas property, previously owned by Minera Teck.
The technical information within this document has been 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. The Qualified Person has not reviewed drill cores from the Bata Sur prospect and has not done any check assays to verify the drill intersection reported.