Gregory Beischer the President, CEO, and Director of Millrock Resources sits down with Maurice Jackson of Proven and Probable to share the latest developments with Shareholders regarding the new addition and value proposition of the El Picacho and La Navidad Gold Projects along with Joint Venture Partner Centerra Gold. In addition, Millrock Resources is now positioned to be a major shareholder of Sojourn Ventures Inc (TSX-V: SOJ) through the sale of two of its British Columbia Projects, the Willoughby and Oweegee Dome projects. Lastly, Mr. Beischer confirms that Millrock Resources has received another exclusive invitation to be a featured exhibitor at the Sprott Natural Resource Symposium, which is quite the distinction.
Maurice: Welcome to Proven and Probable where we focus on metals, mining, and more. I’m your host, Maurice Jackson.
Today, we will be discussing a company that is established itself as a premier project generator. I’m speaking of Millrock Resources, trading on the TSX-V 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 we will convey in today’s message.
Mr. Beischer, welcome to the show.
Gregory: Thanks, Maurice. Glad to be here.
Maurice: Last week, Millrock announced some exciting news on the El Pichacho along with Centerra Gold located in Sonora, Mexico. For those that missed the interview, please give us with brief overview.
Gregory: Sure. Yup. This is the first project flow of our strategic alliance with Centerra Gold. I’m quite happy about it. It’s a solid gold exploration project with very similar geologic attributes that are present at the San Francisco gold mine which is really quite close by, perhaps 15 or 20 kilometers away.
This mine produces gold profitably at today’s price. And we think there could be another major gold deposit on our claims. So we’ll get underway with exploration and we’ll report back to you soon on that.
Maurice: Now, sticking with Sonora, Mexico, Millrock Resources contineus to make strategic moves that benefit its shareholders. This time by way of an option agreement to purchase another gold project, provide us with details on this.
Gregory: Sure. The project is called La Navidad. And quite a good project, a bit more advanced stage. In this case, we were able to make a purchase agreement with the owner that had discovered gold and drilled what appears to be a small deposit, about 20 years ago.
Now, they haven’t pursued anything really since then. So we think not only can we reestablish the gold resource that’s in the ground but we think there’s excellent exploration potential to expand this resource.
So we were able to make the deal but it’s actually a little bit more advanced than Millrock would otherwise be able to handle. But because we have the financial backing of Centerra, we were able to pursue it. So we get to work on this project right away too. We’re having a planning meeting in our office in Hermosillo, Mexico as we speak. And the plans will emerge from there. But I suspect that we will be drilling at La Navidad in very short order.
Maurice: Talk to us about the scale of this. How many hectares are we talking here?
Gregory: It’s quite a huge project actually because Millrock had acquired concessions all around the corridor of Navidad claim work that we have an option to purchase. So that’s part of our strategy always is to try and get the whole district if we can. That way, if there’s multiple deposits, we have all of them. And that’s always very attractive to our major company partners as well.
Maurice: And that’s 25,000 hectares, am I correct?
Gregory: Yes. That’s a big piece of real estate.
Maurice: In the mineralize trend, let’s talk about that for a second. It’s 2.2 kilomerters in distance and the width in meters is 300 to 600. Is that correct?
Gregory: That’s what’s being outlined so far. Yes. It’s a fairly obvious at surface where no crops and we can trace over that 2-kilometer distance. It’s a silicified bright red hematite. So, rocks are quite red and altered and that allows us to trace the series of faults that are exposed over a fairly broad area, like you said 300 to 600 meters of outcrop width. And so, it has definitely got size potential.
Maurice: And if I’m not mistaken on this, this is also low angle faults?
Gregory: Yes. These are low angle faults near a surface mineralization. And therefore, if there is a big gold deposit there, it will be relatively easy to get at through open pit mining methods.
Maurice: One of the virtues I like about Millrock Resources is how you structured these deals. Talk to us about the exit strategy should the results not come back favorable.
Gregory: Well, yes. We always try to make option to purchase agreements in these situations. The owners wanted quite a lot of money for the property. We settled on a price tag of two and a half million dollars.
However, if we structure it so that it’s an option deal, we make payments over time and the initial year’s payments are relatively low, just $125,000 per year. So that allows us the time to do the exploration work necessary to determine whether we really want to pay the final balloon payment of $2 million to exercise the purchase option.
We can exit any time. Of course, we’ll lose whatever money we have invested up to that point. But we can assess the geology, see if there’s a valuable deposit before we make that big payment.
Maurice: Gregory, switching gears. Let’s go to British Columbia where Millrock Resources has even more great news regarding the Oweegee Dome and Willoughby projects. What can you share with us?
Gregory: Sure, yeah. That’s the Oweegee Dome Project that has got a great potential for a copper porphyry like the neighboring Seabridge KSM deposit, very favorable geology.
Willoughby has got some great high-grade gold mineralization but we’ve announced an agreement today with Sojourn Ventures Inc. This is a Vancouver junior company. We will back and they’ll take on the project. Millrock will actually execute the exploration in the first year on our own projects on behalf of Sojourn. And so, this should be a good partnership. We’re really excited to see these projects advancing.
You know, Maurice, it was just about two years ago now that we bought up these projects at very bottom of the market and what I considered to be quite low prices. And now, our shareholders are realizing the benefits from that where we’re able to van the projects at a higher price and move them forward with exploration. And hopefully, a big discovery.
Maurice: That’s one of the ethos and virtues at Rick Rule – Sprott Global Resource Investments always shared with me that you have to have courage and conviction. And Millrock Resources has demonstrated that resolve year after year.
Gregory, before we leave, last question for you, what did I forget to ask?
Gregory: Well, Maurice, I guess you forgot to ask about the Sprott Conference that’s coming up in July. I know that you are going to be there and I look forward to seeing you in person again. That’s a great conference. The price of gold has been creeping up, bouncing up against US$1,300 per ounce over the last little while. I think there is a chance it’s going to breakthrough that barrier and there might be a lot of happy investors at this conference.
So I really – now, is the time to accumulate shares in junior mining companies. There is some I think a good bull market coming and that investors are going to make some good money in our sector again for a change.
Maurice: For our listeners, it speaks volumes when the preeminent name of the natural resource space, Sprott Global Resource Investments, hand selects Millrock Resources year after year to be an exhibitor because the selection criteria is very extensive and meticulous.
Gregory, if someone listening wants to get more information regarding Millrock Resources, please share the contact details.
Gregory: Sure, Maurice. We are actually very pleased to be counted amongst that select group of companies that participate in the Sprott Investor Conference. If you want to get in touch with Millrock for any reason, to learn more, you can talk to Melanee Henderson at our Vancouver office. You can get that phone number by calling up our website, MillrockResources.com.
Maurice: And last but not the least, please visit our website, www.ProvenandProbable.com where we interview the most respected names in the natural resource space. You may reach us at [email protected]
Gregory Beischer of Millrock Resources, thank you for joining us today on Proven and Probable.
Outro: Thank you for joining us today on Proven and Probable. Remember to like and subscribe for more conversations with the most respected names in the natural resource space. Check out our website at www.ProvenandProbable.com.
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