Millrock Resources Inc. (TSX-V: MRO, OTCQB: MLRKF) ("Millrock" or
the “Company”) is pleased to announce it has signed a binding
letter agreement (“Letter Agreement”) with Mine Discovery Fund Pty.
Ltd. (“MDF”) concerning its El Batamote porphyry copper exploration
project in Mexico. MDF is a private Australian company. In good
faith, MDF has made an initial US$50,000 cash payment upon signing
the Letter Agreement. A definitive agreement (“Definitive
Agreement”) has been prepared will be signed immediately following
the formation of a Mexico subsidiary company by MDF. MDF has placed
Batamote into a wholly-owned subsidiary company called Latin
America Copper Limited(“LatCopper”) along with other assets in
Chile. MDF indicates it has commenced compliance documentation for
a potential ASX or TSX listing in the first half of 2022.
Millrock President and CEO Gregory Beischer commented: “Batamote
has excellent potential to discover a porphyry copper deposit. We
know already that breccia-style and porphyry copper mineralization
is present. We are particularly excited to drill-test beneath what
appears to be a leach cap alteration zone at a prospect called El
Choclo NW. The project is situated within a belt that has produced
very large porphyry copper deposits being mined by others as
evidenced by the Cananea and La Caridad mines.”
Latin American Copper Director Joseph Webb commented: “With the
addition of El Batamote, LatCopper has three exceptional
cornerstone exploration assets with evidence of Tier 1 scale
potential in the globally significant copper belts of Latin
America. El Batamote is 25 kilometers northwest of Grupo Mexico’s
La Caridad copper mine (5.98 billion tonnes at 0.34% copper
equivalent) with an untested leach cap identified along strike from
known mineralisation. This indicates potential for supergene
mineralisation at Choclo. The Bata Sur definitive mineralised
porphyry system intersected by historic drilling remains open along
strike.”
Under the terms of the Definitive Agreement, LatCopper will have
the option to purchase a 100% interest in the concessions that
underlie the Batamote copper project. To earn the interest,
LatCopper will have to make cash payments totalling US$1,000,000
over five years, execute US$6,000,000 dollars in exploration work,
and pay Millrock US$250,000 in shares when LatCopper becomes a
publicly listed company. In the event that LatCopper exercises the
option to purchase the Batamote project, annual advanced minimum
royalty (“AMR”) payments will be triggered. The first payment will
be US$50,000 and the payment will increase by US$50,000 each year
until a cap of US$500,000 is reached. Annual payments will then
remain at the capped level until a mine reaches commercial
production. At that point, a Net Smelter Return production royalty
of 1.0% will be triggered. Any AMR payments made by LatCopper can
be credited against production royalty payments.
About the El Batamote Project
The project is located 100 kilometers south of the Sonora –
Arizona border and 140 kilometers north of the mining hub of
Hermosillo in northeastern Sonora State, Mexico. The project is
fully accessible by road and covers nearly 4,000 hectares. Millrock
previously purchased the concessions and historical exploration
data from a subsidiary of Teck Resources Ltd., as announced by
Millrock in a November 2015 press release. The project is situated
within the Cananea-La Caridad Copper Porphyry belt (Figure 1). This
district-scale structural trend is situated within the larger North
American porphyry copper province containing over 20
copper-molybdenum deposits and mines in Arizona, New Mexico, and
Sonora.
Figure 1. Project location map
is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/639437fc-1d2c-4f6a-9a1c-b6e6ac47e702.
El Batamote contains alteration and geochemistry characteristics
of a Cu-Mo porphyry system. Important historical work has been
conducted on the property by large companies such as Phelps Dodge,
BHP, Noranda, Peñoles, and Teck. Abundant information was generated
by prior workings in the south and central part of the claim block
and includes regional and semi-detail mapping, geochemistry,
petrography, spectrometry, geophysics and drilling with more than
10,000 meters of diamond core having been drilled.
The exploration led to the discovery of several key prospects:
Bata Sur, El Choclo NW and El Choclo West (Figure 2). Review of the
historic data has led Millrock geologists to make new exploration
observations, conclusions, and recommendations. Preliminary plans
include geophysical surveys at El Choclo NW, where a possible leach
cap is situated adjacent to known porphyry mineralization. No
drilling has been done beneath the alteration zone. At the Bata Sur
prospect, breccia pipe style mineralization has been intersected by
prior drilling. Drilling is recommended to test for higher grade
and to test previously untested geochemical anomalies. Millrock has
drilling permits in hand.
Figure 2. Prospect Location Map
is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b48bb9da-f767-4ecf-af5b-4b76c395f052.
The lithology and alteration at Batamote are similar to that
found at the La Caridad and Cananea mines. The mining concession
covers Late Cretaceous Laramide age intermediate composition
volcanic sequences which are intruded by a large, multi-phase
batholith with multiple, mineralized porphyry pulses along a
northwest-trending structural corridor. Porphyry dikes cut the
system and are followed by later, mid-Tertiary post-mineral
tuffaceous rocks, all of which are cut by long-lived
northeast-trending and north-south fault structures. Intermediate
volcanic rocks are the main host to copper mineralization. These
rocks contain strong hydrothermal alteration related to
porphyry-type systems in a three-kilometer by six-kilometer area
that on the west side, is truncated by north-west to north-south
trending post-mineral faults. Quaternary gravels cover bedrock west
of these faults, but porphyry mineralization may be concealed below
as potentially indicated by geophysical surveys at Choclo W.
Qualified PersonThe scientific and technical
information disclosed within this document has been prepared,
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.
About Millrock Resources Inc.Millrock Resources
Inc. is a premier project generator to the mining industry.
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
taken on by most exploration companies. The company is
recognized as the premier generative explorer in Alaska, holds
royalty interests in British Columbia, Canada, and Sonora State,
Mexico, is a significant shareholder of junior explorer ArcWest
Exploration Inc. and owns a large shareholding in Resolution
Minerals Limited. Funding for drilling at Millrock’s exploration
projects is primarily provided by its joint venture
partners. Business partners of Millrock have included some of
the leading names in the mining industry: EMX Royalty, Coeur
Explorations, Centerra Gold, First Quantum, Teck, Kinross, Vale,
Inmet and, Altius as well as junior explorers Resolution,
Riverside, PolarX, Felix Gold, Tocvan, and now Mine Discovery
Fund.
About Mine Discovery FundMine Discovery Fund
(MDF) is a private investment vehicle backed by some of the
industry’s leading technical advisors and professional mining
investors. MDF focus is on Tier 1 orebody discovery in the
jurisdictions that provide the highest probability of exploration
success (in the most fertile Tier 1 Belts and in areas with clear
pathways for development potential.
ON BEHALF OF THE BOARD“Gregory Beischer”Gregory
Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT:Melanee
Henderson, Investor RelationsToll-Free: 877-217-8978 | Local:
604-638-3164Twitter | Facebook | LinkedIn
Some statements in this news release may contain
forward-looking information (within the meaning of Canadian
securities legislation) including without limitation the intention
to mount further exploration including drilling in 2021 and 2022,
and the intention to enter a definitive agreement with Mine
Discovery Fund. These statements address future events and
conditions and, as such, involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the statements.
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