Millrock Resources Inc. (TSX VENTURE:MRO) announced today a definitive agreement has been signed with Crescent Resources Corporation for the exploration of Millrock's Uncle Sam property located 75 kilometers southeast of Fairbanks, Alaska in the Tintina Gold Belt. The agreement follows on from a Letter of Intent signed between the companies in October of 2010.
The agreement gives Crescent the exclusive option to earn a 100% interest in the Uncle Sam claim group in return for a cumulative US$2.5 million in exploration expenditures, US$300,000 in cash payments and Crescent share issuances to Millrock. If the earn-in agreement proceeds to December 31, 2011, Millrock will be issued that number of shares to give the Company 18% of the issued and outstanding shares of Crescent on that date.
Additionally, Crescent will issue to Millrock additional common shares in connection with independently verified gold resources defined on the Property as measured or indicated resources under National Instrument 43-101 in the following amounts:
The Uncle Sam gold project targets intrusion-related gold deposits hosted in a similar age of intrusive rocks to those which host the Pogo Gold Mine in east-central Alaska approximately 60 kilometers to the east of Uncle Sam. The Pogo Mine was discovered in the mid 1990's and hosts over five million ounces of gold. Prior exploration data indicates extensive anomalous surface gold geochemistry.
The intersections were calculated using a 0.2 g/t of cutoff. True width of the historic intersections has not been accurately ascertained.
The Uncle Sam property was previously explored in the 1990s by Kennecott, Geoinformatics (a predecessor to Kiska Metals) and Midas Gold. Geophysical surveys have identified two intrusive bodies with associated gold mineralization. As a result of the prior exploration work, numerous drill-ready targets exist on the Uncle Sam claim block. The companies plan further geochemical surveys, airborne high-resolution magnetic surveys, and drilling in 2011.
Millrock will be the operator of the Uncle Sam program until November 1, 2011; thereafter, Crescent will be operator of the Uncle Sam exploration program. While the Option Agreement is in effect, Crescent will assume the underlying cash payment obligations to Kiska Metals Corporation ("Kiska").
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.