North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Millrock Resources Inc. Feb. 10 announce that it has staked 208 new state mining claims associated with the Treasure Creek and Ester Dome gold properties, expanding its total land position in the Fairbanks Mining District to approximately 49,900 acres.

These Interior Alaska claims are subject to purchase agreements with Felix Gold Ltd., a private Australian gold explorer that is expected to gain a listing on the Australian Securities Exchange (ASX) in the coming months.

Under an agreement announced in January, Millrock is transferring ownership of the Fairbanks Mining District properties and the Liberty Bell property about 70 miles to the southwest to Felix Gold in exchange for a share position in the new company and US$210,000 in cash.

Upon Felix Gold's successful listing and Australia Securities Exchange approval, Millrock will vest with roughly a 10% share ownership of the Australia-based explorer, dependent on the final capital raising amount.

In addition, Millrock will be entitled to cash payments in the form of advanced minimum royalty payments that can later be deducted from net smelter return production royalties, if a mine is developed.

"We are honored to be working with the Millrock team. They have assembled a great land package and bring an extensive understanding of Alaska gold districts and local operational expertise. Felix Gold, through the Mines Discovery Fund backers, brings an outstanding technical team with global experience and significant commercial strength," said Felix Gold Managing Director Joseph Webb.

Exploration in the Fairbanks Gold District is already underway. In December, Felix Gold funded an airborne magnetic survey to be flown over Treasure Creek. Millrock says results from this geophysical survey have been received and are being reviewed and strong drill targets are emerging.

An initial test with rotary drilling followed by deeper reverse circulation drilling is envisioned.

Millrock Resources Inc.

Millrock and Felix have expanded their land position in a Fairbanks District area of interest to roughly 49,900 acres.

"While there is a lot of advance work to do, such as the recently completed airborne geophysical survey, discoveries are made with the drill bit," said Millrock Resources President and CEO Greg Beischer. "We look forward to getting started on our drilling programs as soon as possible, and Treasure Creek is a great place to start. The prospects we will drill are literally within sight of the great Fort Knox gold mine and we have great indications of gold beneath the Treasure Creek claims."

Felix and Millrock intend to aggressively explore the Fairbanks area's rich gold potential.

"The Fairbanks Gold District is underexplored and has real potential for multiple new gold deposit discoveries," said Webb. "Millrock is positioned at the center of what we envision as the next wave of major gold discoveries in the Fairbanks Gold District, which features Kinross's Fort Knox gold mine and significant alluvial gold production."

Author Bio

Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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