Millrock Resources Inc. (TSX VENTURE:MRO) announced today that it has begun a second round of drilling at its Galiuro porphyry copper-gold property in southeastern Arizona.
The property is the subject of an earn-in agreement with Vale Exploration Canada Inc. ("VEC"), a wholly-owned subsidiary of Vale S.A. ("VALE"). VEC is funding work on the property with Millrock operating exploration operations. A program of approximately 4,000 m in four holes is planned.
The target at the Galiuro property is a large porphyry copper +/- gold deposit hidden beneath alluvium and Tertiary volcanic cover. The property is situated at the intersection of the Resolution and San Manuel / Kalamazoo porphyry copper trends. Because of the Tertiary volcanic cover, little exploration work has been previously done by other companies. Through careful geological mapping in combination with airborne magnetic and ZTEM geophysical surveys, Millrock has identified numerous targets that may represent porphyry deposits.
Drilling by Millrock and VEC in spring 2010 resulted in the discovery of porphyry copper mineralization and alteration in Cretaceous – aged rocks hidden beneath Tertiary volcanic cover rocks. The current drilling program will further test these targets as well as others in the area. Two of the holes will test the Fourmile target. This circular magnetic feature is ringed by a strong conductive zone as identified by a ZTEM airborne geophysical survey. Intense argillic alteration is known from rock exposures and prior drilling on the west side of the structure.
VEC has the option to earn a 60% interest in the project through exploration expenditures totaling US$3.5 million and payments totaling US$850,000. The earn-in agreement is in its second year, and VEC has expended approximately US$1.5 million on the property to date. VEC may earn an additional 10% interest, for a total of 70%, by funding a feasibility study.
The technical information in this news release was reviewed by Gregory Beischer, Millrock's President and CEO, a Qualified Person as defined in NI 43-101.
Source: Millrock Resources Inc.