Millrock Resources (TSX-V: MRO) CEO Greg Beischer Gives an Update on Drilling at the Zackly Copper-Gold Deposit with Partner PolarX
Share June 1, 2018
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Submit Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is President and CEO of Millrock Resources (TSX-V: MRO)(OTC: MLRKF), Mr. Greg Beischer. Greg, how are you this morning, Alaska time?
Greg Beischer: Very well, Gerardo. Nice, bright, sunny day here in Anchorage and our field teams are out starting up at the Alaska Range project. Exploration season is in full swing all of a sudden.
Gerardo Del Real: Well, I'm a Chicago kid at heart. I spent my childhood there, but I also lived in Anchorage, Alaska for 17 years. You know as well as I know that when you get a sunny day you've got to take full advantage of it.
Greg Beischer: You bet.
Gerardo Del Real: So listen, we had some news here recently. You announced yesterday that PolarX is now drilling on the Zackly copper-gold deposit, which is of course in the Alaska Range there in Alaska. And it's a big deal to Millrock because you own 9.76% of the issued and outstanding shares of PolarX. Can we talk about their initial program and what that's going to look like this year?
Greg Beischer: You bet. We were really pleased that PolarX was able to raise a good amount of money in what's a pretty soft market. But they were successful, and I think they may in fact raise substantially more as the field season progresses, in which case we'll expand the program that's going on right now. And yeah, it's important for Millrock because we are a big shareholder in PolarX, we're entitled to certain milestone payments as the project moves along, and if there's a big deposit there we have a substantial royalty that would pay us very well.
In the meantime, though, it's a good partnership. Millrock is the operator of the exploration. We work closely with the PolarX technical team, but we're executing the work and we generate some revenue in the form of management fees for doing so. So all together it's just a great partnership that benefits Millrock and its shareholders, and exposes shareholders to the possibility that we make that big discovery that will make a major share price increase.
The current program is 23 holes designed to expand upon the resource, the high-grade copper-gold skarn resource that was announced earlier this year. This was an historic deposit, the work and the drilling that we did with PolarX last year confirmed the resource. It's pretty good, 41,000 tonnes, metric tonnes of copper, and over 200,000 ounces of gold, and 1.5 million ounces of silver. And if this drilling program's successful, it has the potential to substantially increase that metal resource.
So we're off to the races, we're mobilizing as we speak, it'll probably be another 10 days before the drills are actually spinning, two drills and potentially more to be added as the season unfolds. So it's that very exciting time in any exploration project when we're out there about to mount the next drill campaign.
Gerardo Del Real: Now, Greg, I understand that in addition to the existing mineralization and the extensions that are believed to be there, there's also the potential for a porphyry copper-gold system, is that accurate?
Greg Beischer: You bet, yep. That's what initially attracted Millrock to the area, we're on the hunt for something like another Pebble deposit, something that's got some really serious potential, not that the Zackly skarn isn't a great target, it could very well be a deposit that's got the size and metal content to mine, but of course, Alaska's got that potential for the giant discovery. Skarns are often found near porphyry deposits, we've got the geophysical and geochemical parameters that tell us that there is a porphyry deposit potentially nearby. We've got porphyritic rocks in close association with that skarn, maybe it's right below the skarn. We don't know yet, but we're sure hopeful that we'll get the opportunity to drill some of those targets as well. That'll depend on further fundraising by PolarX, but that's the goal. That's the ultimate goal is to make a giant discovery of a porphyry copper-gold.
Gerardo Del Real: Now, switching gears a little bit from Alaska to Mexico, you're drilling the La Navidad project, which of course you're also searching for extensions of the known mineralization, but you're looking for potentially new discoveries there. How is that coming along, Greg?
Greg Beischer: Yup, everything's going along fine. The program's in full swing. I think we're on our fourth hole of the program, and I know the geologists have seen some altered zones that should be mineralized with gold, so stay tuned for that. It'll probably be at least a month away before we're in a position to make any announcements about those drilling results, but the program's in full swing and moving ahead very well.
Gerardo Del Real: Well, as always, Greg, I look forward to having you back on when we start getting some of those results. I will be at the 121 Mining Investment Conference on June the 5th and June the 6th in New York City. I understand, and it was brought to my attention by you, that PolarX's team, which I understand to be a very excellent technical team and partner, will also be there. So I'm looking forward to meeting and chatting with them. If any of you are in the area, please stop by and say hello to both PolarX and myself. Greg, anything else that you'd like to add?
Greg Beischer: Just that we have really enjoyed our relationship with PolarX. They are strong technically, they do what they say they're going to do, and so have been a great partner. They're a company listed on the Australian stock exchange,
PXX on the ASX is their symbol, and some of your investors may wish to take a look at that stock as an investment.
Gerardo Del Real: Excellent. Greg, thank you so much for your time, we'll chat soon.
Greg Beischer: Okay. All the best, Gerardo. Talk to you next week, probably.
(20min delay)
