Millrock Announces Rainville Copper Project, Arizonaadmin
Millrock Resources Inc. is pleased to announce that it has entered into an exploration agreement with option to purchase concerning a large block of Arizona State Exploration permits referred to as the Rainville project. The permits cover land situated southeast of the town of Safford, Arizona and south of the Morenci mine in southeastern Arizona.
Under the terms of the agreement, Millrock can maintain an option to purchase from the owner a 100% interest in the permits by paying a total of US$400,000 and issuing 500,000 Millrock common shares over a period of six years. The initial payment consists of US$70,000 and 250,000 common shares. If all option payments are made the property may be purchased for the sum of $1.0 million. A further payment of US$1.0 million will be made to the owner in the event that Millrock prepares a report that describes an indicated mineral resource (as that term is used in NI 43-101) of 1,500,000 tons or more of contained copper on the property.
The Rainville project is positioned along the trend of the prolific Safford deposits which are being actively developed by Freeport McMoran Copper & Gold. Regional geochemical surveys, geophysical surveys and geological modeling have led Millrock to believe there is potential for discovery of valuable porphyry copper deposits hidden beneath overburden on the exploration permits.
In a manner consistent with its project generator business model, Millrock plans to find a partner to share in the risk of exploration and development of the permits by funding exploration.
The purchase agreement is subject to acceptance by the TSX Venture Exchange.
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.