Millrock Resources: Equity Stake, Strategic Moves, Deep Value Proposition

Maurice Jackson:
Welcome to Proven and Probable, where we focus on metals, mining, and more. I’m your host Maurice Jackson. Today we will discuss a company that is establishing itself as a premier project generator, I’m speaking of Millrock Resources trading on the TSXV symbol MRO and on the OTCQX symbol MLRKF. Joining us today is the President, CEO, and Director of Millrock Resources, Gregory Beischer.

Before we begin, allow me to convey to our listeners that Millrock Resources is a sponsor of Proven and Probable, and that we are proud shareholders of Millrock Resources for the virtues that we will convey in today’s message.

Mr. Beischer, welcome to the show.

Gregory B.:
Thanks very much Maurice, always a pleasure to speak with you.

Maurice Jackson:
Mr. Beischer you have some very interesting developments for current and prospective shareholders that I know you’re delighted to discuss, but before we begin I want to give credit where credit is due, Millrock Resources was once again hand selected to be an attendee at the Sprott Natural Resource Symposium, for our listeners this speaks volumes about the merit and confidence that Rick Rule and his staff of geologists and financial analysts have in Millrock Resources. Gregory, this puts Millrock Resources in an elite group of issuers, for someone new listening what is it that Rick Rule sees in Millrock Resources?

Gregory B.:
Well thanks Maurice, yes we certainly are pleased to be counted amongst the 50 companies that are selected by Sprott each year and Rick Rule each year for the conference that we’ve just finished last month. Well, I know that Mr. Rule has confidence in Millrock, partly because of our strict adherence to the project generator model, we’ve really stuck with this over the years. We know over the long term it’s going to allow us to succeed in finding a mineral deposit that’s going to reward our shareholders. You know, things are picking up in the markets now and cash is becoming more available, but we think the slow, steady, systematic approach is how one finds ore bodies, and that’s our approach and I think that’s why Mr. Rule likes us.

Maurice Jackson:
Now Gregory lets share with our audience why Sprott likes the value proposition of Millrock Resources beginning with an equity stake that you have in Coventry Resources through the Stellar Project in Alaska, give us the details on this transaction.

Gregory B.:
Well it was actually a fairly complicated transaction Maurice, and it would be best not to know all the details because it would take awhile to explain, but the upshot of it is that Millrock has sold its interests in the Stellar Project to Coventry Resources in return for a major shareholding in their company. We own over 10% of the company and they brought to the table an adjacent project to Stellar which is Caribou Dome where there’s a known high grade copper deposit and on our project, Stellar, there’s also a known high grade copper gold deposit. So combined, the two deposits if they can be grown to be a little bigger through exploration could actually become a viable mining operation, and in the meantime we would still have the exploration potential across what is now a 35 kilometer strike length property, so that will create other prospects. So, we’re pleased with the transaction, we’re the exploration operator and right now we’re executing a major drilling program on the Stellar Project the Zackly deposit in particular, so … we’re happy with the transaction and we’re very pleased that our project is being advanced.

Maurice Jackson:
Now did the drilling begin today, is that correct?

Gregory B.:
That’s right, yes, we just put out the announcement this morning. Drilling began over the weekend we’re going to try to verify that historic high grade copper gold resource at Zackly and test for extensions along strike and I think this is where some value creation could be realized … From geophysical surveys it appears that the deposit will extend in both East and West strike directions, so we’re hopefully that drilling will bear out that hypothesis.

Maurice Jackson:
Can you give the shareholders a time horizon of when you expect the drill results?

Gregory B.:
Yeah, drilling should be completed by the end of September, and so I would suspect given turn around times at laboratories that it will be mid-October when we receive all the results and publish them … it will be somewhat up to Coventry Resources, they may wish to announce some of the results as received or it may be preferable to hold them all until they’ve been fully verified.

Maurice Jackson:
Now, continuing the discussion of equity stake, let’s move South to British Columbia and discuss Millrock’s transaction with Sojourn Exploration on two projects in the Golden Triangle. Talk about the details of this arrangement and what this means for Millrock Resources?

Gregory B.:
So, in this case, we took two of our B.C. projects in the Golden Triangle and made option to purchase agreements taking shares in a new company called Sojourn Exploration as compensation. Again, Millrock is the exploration operator so we’re executing at least the first round of exploration on behalf of Sojourn, but I’ll tell you Maurice this is one hot area now with the Pretium’s Brucejack deposit now in production and producing gold. There’s been a number of new discoveries in the Golden Triangle district, our properties are extremely well positioned with some great indications at surface and we think that Sojourn Exploration is going to do very, very well, and as major shareholders in the company we’re going to help … do everything we can for them to succeed. So, I think … this is a very good time for Millrock to be accumulating shares in other junior companies, it looks like the markets have turned and while it’s more typical that we have done agreements and exploration joint ventures with major mining companies, I think now is a good time for us to be doing agreements with juniors and that’s what we’ve done in these two cases.

Maurice Jackson:
You know, speaking of the markets turning, we just had gold surpass 1300 right before this interview, which is always a good and encouraging sign, but Mr. Beischer let me ask you this as well, how much of an equity stake does Millrock have now in Sojourn Exploration?

Gregory B.:
At the moment, we’re at 12.6% shareholders with the opportunity to grow that shareholding over the option period.

Maurice Jackson:
Mr. Beischer, we’ve covered the good, what keeps you up at night that we don’t know about?

Gregory B.:
Sure, well … you know everything has come together in our efforts in Alaska and British Columbia in just the last couple of weeks. Summer’s ticking on, in fact here we are almost at the end of August, so it’s a short time frame that’s left to execute all this work and to do it safely foremost, and to the highest technical standards takes an excellent team. Fortunately we’ve got it, but nevertheless it is a concern that so much of this is coming together right at the end of the season, so I do spend a bit of time awake making sure that we do these things properly and safely.

Maurice Jackson:
And finally, what did I forget to ask?

Gregory B.:
Well, I just … you didn’t really forget to ask Maurice because I think the question is what are the markets doing, and you know it sure looks like things are picking up. I’ve been waiting for gold to break through the $1300 threshold for some time, who know what’s going to happen, maybe it’ll get knocked right back down, but I think if it solidly stays above 1300 and starts to move higher that’s going to be really good for the mining investment markets and … So at least at this point there’s a very receptive market and if Millrock gives investors some good drill results, be it in Alaska or at our operations in Sonora, Mexico, I think Millrock shareholders will be well rewarded.

Maurice Jackson:
Certainly these are all encouraging signs. Mr. Beischer, for someone listening that wants to get more information regarding Millrock Resources, please share the contact details.

Gregory B.:
Sure, you can always look us up on our website, which is www.millrockresources.com and can get in touch with (click to email) Melanee Henderson of our investor relations, and I’d be glad to speak to current and prospective shareholders as well.

Maurice Jackson:
And last but not least, please visit our website www.provenandprobable.com where we interview the most respected names in the natural resource base. You may reach us at [email protected]. Gregory Beischer of Millrock Resources, thank you for joining us today on Proven and Probable.

Gregory B.:
Thanks to you Maurice, talk to you again soon.

Maurice Jackson:
Yes sir.

Proven & Probable

Maurice Jackson

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