Millrock Resources: Partnering the Most High-Risk, High-Cost Stages of Exploration

February 3, 2021

Source: Maurice Jackson for Streetwise Reports   02/02/2021

Maurice Jackson of Proven and Probable sits down with Millrock CEO Gregory Beischer to talk about recent developments at the prospect generator.

Millrock Alaska Map

Maurice Jackson: Joining us for a conversation is Gregory Beischer, the CEO of Millrock Resources Inc. (MRO:TSX.V; MLRKF:OTCQB).

It’s been a couple of months since we last spoke. Let’s get readers up-to-date on the latest developments on the 64 North Project, as well as some of the upcoming drill programs that you may have slated coming up within the property bank of Millrock Resources. Speaking of the 64 North, several interesting developments are moving there simultaneously from road cutting sampling, assay results, trenching, and today the announcement of a 30% earn-in with Resolution Minerals. Let’s visit the Aurora targets. What can you share with us regarding the latest assay results, sir?


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Gregory Beischer: Well, there’s been a lot of water under the bridge, since it has been a couple of months since we spoke, Maurice. As you know, we aggressively drilled at 64 North, well throughout 2020, but even as late as December, we were finishing up the last two holes. However, I would say that all the drilling results were quite disappointing in terms of their gold content. Some of the holes appear to have excellent looking alteration features and veining, and we thought we’d tied into the system, but the gold wasn’t there. I certainly don’t rule out the prospect by any means. It was just about the first nine holes ever drilled in that part of the world. So lots of potential remains, but disappointing nevertheless. However, in tandem with that drilling work, we also completed a lot of trenching work and geophysical surveys. And we’ve developed with our partner Resolution Minerals three more targets.

One of them is quite close to the Aurora. The drill trail that we constructed to Aurora goes right over what’s now called the Sunrise prospect where we sampled the road. That’s over 137 meters of road-cut; we detected strongly anomalous gold values continuously over that entire distance around 0.3 grams per ton. Its intrusion hosted mineralization is different than the nearby Pogo Mine, but perhaps more akin in its style to what one would see at the Fort Knox Mine, which is close to where I presently am located in Fairbanks. And of course, Fort Knox is a fantastic mine and a deposit style that we wouldn’t be discouraged if we found one similar to it. And that is the sort of style and we are keeping an open mind, the flat line veins at Pogo, very high-grade. That would be great to find, but we always keep an open mind when we’re in a gold-rich system like this. It could be any style-related to these intrusions.

So, the Sunrise prospect well worth following up, and additionally, east of the Pogo mine at the Boundary prospect and southwest of the mine, the Eagle prospect, there are three great drill-ready prospects now that were developed between Resolution last year. And they’ve indicated their intention to continue to drill and test those projects in the coming year.

Maurice Jackson: How many square kilometers are we talking about here?

Gregory Beischer: The 64 North Project is huge. We had the unique opportunity to stake hundreds and hundreds of claims in a wide-open district. Very unique that a mining district like this was wide open except for the mine itself practically. And it’s 660 square kilometers of highly prospective gold ground. So there’s lots more to explore and it appears that our earn-in partner shares our confidence as well. Although the results of the drilling weren’t what we hoped, we look at this project on a long-term basis and it costs us roughly USD 600,000 to develop and acquire all the mineral rights for the project. But at this point, we’ve recovered that investment. We’ve got a substantial shareholding and Resolution Minerals as a result of the deal, holding now about 14 million of its shares, which could still become highly valuable if there’s a discovery in the coming year or two. And we have every reason to believe that that success could come. So I think we’ve done our job for our shareholders sticking closely to our generator model.

Maurice Jackson: As a shareholder, one has to be fairly optimistic about the value proposition before us. If Resolution Minerals is demonstrating its commitment on a 30% earn-in, and I speak off the record with several respected names in the space and the recurring theme that I hear on the 64 North is: “it’s there, they just have to keep drilling,” but they have full confidence in the project. And I do wish to convey that I will be looking to add to my position at these prices.

Let’s move to Fairbanks, sir, please introduce us to the Treasure Creek project and the new relationship between Millrock Resources and Felix Gold on this project.

Gregory Beischer: Today I’m in Fairbanks at Millrock’s now northernmost office and surrounded by the Fairbanks gold mining district. The Goodpastor district just off to the southeast by about an hour and a half drive, that’s where the 64 North project is located that we’re just talking about. But more recently Millrock rolled three projects, Treasure Creek, Astrodome and Liberty Bell, all into a brand new company that’s called Felix Gold. The company is named after Felix Pedroni, who was the original prospector, discoverer of gold at Fairbanks, and a fantastic amount of alluvial or placer gold has been mined from this area. And there’s been several high-grade, past-producing underground gold mines, but by far, the star of the show is Kinross’ Fort Knox mine, which has so far produced over 7 million ounces, I believe, and has a total resource of 13 million ounces.

So a flagship mine for Kinross Gold, but a few years ago, Millrock started to build a property position in Fairbanks, a surprising amount of land, when it was still open. And we met people from what’s now Felix Gold, and they got very interested in Fairbanks. And so we formed a strategic alliance with them that’s meant to explore all over the Fairbanks district, but also aggressively drill on the toehold projects that we’ve got, Treasure Creek and Astrodome and Liberty Bell. And we’re going to start with Treasure Creek, perhaps is as early as May.

The Treasure Creek placers draining off our ground over 130,000 ounces of gold already recovered from the alluvial deposits, draining the uplands in which we’re searching for lode gold deposits. There has been some drilling in the past, some big, broad, modest grade intersections along the lines of Fort Knox, for example, 0.9 grams over a good 30-meter thickness and very close to surface, some higher-grade intersections to follow up. So we’ve done all the legwork that we need to do in terms of soil sampling and the like we’ve got our targets picked out and we’re just amending our exploration permit now and anticipate that Felix Gold will complete its initial public offering on the Australian securities exchange and become a trading company, a very well-funded one. And we’ll get to work drilling holes on the project here and hopefully repeat the success that Freegold Ventures has had.

Maurice Jackson: Switching gears, Millrock Resources in the past has focused on gold discoveries. That focus will now include more base metal commodities; which base metals will be the focus, where and why now?

Gregory Beischer: Millrock has always had a steady pipeline of new projects and gold has been the main focus, gold and copper. The porphyries are the types of deposits we like to pursue because they really can be the huge ones that are worth a lot of money to the major mining companies, so we plan to keep adding to our copper portfolio. But more particularly, I think that nickel is a metallic commodity that’s going to be in huge demand as well as in a huge deficit in the coming decade. We have ideas on where to search for nickel, as you probably remember, a big part of my background was with INCO. And I learned a little bit about nickel exploration along the way there, so that, and maybe even zinc, we have probably one of the most spectacular zinc deposits in the world and Alaska operated by Teck, the Red Dog Mine, and there’s certainly geologic potential to find more incredible deposits like that. So those are the sorts of things we’ll be adding to over the coming months and year, while we continue to work on our existing projects.

Maurice Jackson: Before we close, sir, please provide us with an update on the capital structure.

Gregory Beischer: Sure. Well, we have approximately 115 million shares outstanding right now; we’ll have to issue more shares shortly to raise the funding. We need to continue to aggressively acquire new projects and bring them towards drill readiness and partnership readiness. So, that’s going to be happening in the next few weeks. We’ll do financing.

Maurice Jackson: In closing, Mr. Beischer, what would you like to tell shareholders?

Gregory Beischer: We are confident that Millrock has a great year coming up. It appears that we’re going to be drilling on at least four different projects with partner funding. It may be more than that. We’re closing in on potential deals on two of our other projects, one of them in Sonora, one in southeast Alaska. And so it could be even more than four projects. That’s a lot of opportunities for drill hole success that can drive our share price higher. I think our company’s an absolute bargain right now. I appreciate that you’re going to be buying some shares and I can assure you that I’m going to be buying some too. So, I’m putting my money where my mouth is and I think Millrock’s going to be worth a lot more in the future.

You know, I look back at 2020, we were at the share price a year ago. We rose nicely through the summer in anticipation of strong drilling results. We were 20, 25, 30 cents a share. So folks that bought shares in our company a year or so ago, hopefully, took a little profit and did well. But I think that we’ll do that well again this year. And if we get a bit of lock-in some good drill holes, perhaps a lot more than that

Maurice Jackson: Luck is when opportunity and preparedness meet one another. And that’s what we have right here before us in Millrock Resources. Sir, last question. What did I forget to ask?

Gregory Beischer: You forgot to ask if the price of gold going to go up. I think the stage is set. We’ve been consolidating at these levels for a while, I’m no expert, but it just seems to be common sense that the price of precious metals is going to strongly increase soon. And you know, that’s what makes the investment money flow in our industry. So I’m hopeful, that’ll move soon and that we’ll all be happy shareholders and Millrock and the other junior companies that I know you and I both share.

Maurice Jackson: Mr. Beischer, for readers that wish to get more information on Millrock Resources, please share the contact details.

Gregory Beischer: Please visit www.millrockresources.com and you’ll find us.

Maurice Jackson: Mr. Beischer, it has been an absolute pleasure speaking with you today. Wishing you and Millrock Resources the absolute best, sir.

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