Millrock Resources (TSX: MRO) Premier Project Generator, Supported by Major Mining Companies, Adds Chisna Copper-Gold Project Located in Alaska, with Access to Large Database
|
By Dr. Allen Alper, PhD Economic Geology and Petrology, Columbia University, NYC
on 4/28/2016
Millrock Resources (TSX: MRO), a Canadian project generator exploration company, has announced the purchase of the mineral rights to the Chisna copper-gold project located in Alaska with the benefit of an extensive geological database as part of the deal. Beischer, President and CEO of Millrock Resources, told Metals News that the one thing that makes Millrock different from other project generators is that they always bring in a major company partner to fund the expensive drill work. According to Beischer this allows them to operate multiple projects at one time at a very low cost and increases the odds of a giant mineral discovery.
Greg Beischer, President and CEO of Millrock Resources (TSX: MRO), updates readers on the new purchase that his company has just made of the Chisna copper-gold project located in Alaska as well as the database that holds millions of dollars of information that can be leveraged by the company.
The company recently purchased the Chisna copper-gold project as part of a deal made with Corvus Gold. While Corvus will retain a one percent royalty on the project, Millrock also acquired access to an exploration database that made this an excellent deal for the company. The project is located near the paved Tok Cutoff highway and is located four kilometers west of Slana. The nearest major city, Fairbanks, is 420 kilometers northwest. This is just one project that the company holds with major mining companies such as Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet and Altius.
Beischer said, “We were really happy to pick up the Chisna copper-gold project in Alaska. We have made quite a number of property acquisitions over the last 18 months.”
Beischer and his team believe that the market is moving forward at this time. He said, “I think the bottom of the market was last November when we were able to pick up some really great deals on exploration projects, but this one sort of came out of the blue just about a month ago. We were able to buy the mineral rights for $25,000 dollars only, but more importantly, with those mineral rights, we were able to get a database that probably cost the vendor around $11 million dollars to create. This is a regional database of geological information that we can use to generate more projects, and that is what we are, a project generator exploration company.
Beischer and his team work to generate projects and are very clear about their business plan and why they have chosen this route. He said, “Our job as geologists, in a project generator company, is to come up with good early stage grassroots projects. Most of your listeners will know that is just about the highest risk section of the mining industry. Many grassroots early stage projects are started but not many end with the discovery of a minable metallic mineral deposit, though when we are successful at making discoveries, everybody makes a lot of money. It is really too risky to sell shares in the company and just drill holes.”
Unlike other project generators, Millrock takes an additional step to ensure the viability of their projects before they start any type of exploration. Beischer said, “What we do is raise money from our investors and we use that money to develop projects. But before we get to the drilling stage, we always bring in a major company partner, so they fund the expensive drilling work. In return, we give them a majority interest in the project.”
There is a distinct benefit to investors who invest in Millrock with this process. Beischer said, “This allows us to operate multiple projects at one time at a very low cost to our shareholders and exposing them to the possibility that we are going to make a giant mineral discovery. It increases the odds because we have seven or eight projects instead of just one.”
This is an approach that Beischer and his partner have stuck with since the beginning of the company and one he believes will profit the investors with the uptick in the market. He said, “That is our business approach. We have stuck with it ever since 2007 when we started the company. I feel like we have been building up to this day and this time in particular, where we have been able to build out our property report and where we have a good number of early stage projects at a very, very low cost. I’m thinking that the market is coming in and that the tide is rising, and we are well prepared and we are going to be one of the first companies out of the chute as the markets take off.”
Millrock has been able to attract some household names in the mining industry to participate in their exploration project. Beischer said “The partners that we have or have had in the past are household names in the mining industry, like Centerra Gold, First Quantum and Teck.”
Millrock has been able to attract some household names in the mining industry to participate in their exploration project. Beischer said “The partners that we have or have had in the past are household names in the mining industry, like Centerra Gold, First Quantum and Teck.”
Beischer believes that having major mining companies participate in the projects gives a seal of approval to what the company is doing. He said, “Every time they make a deal with Millrock it is an endorsement of the plan that we have. They have geologists and they don’t give money away. It is a real credit to our geological team that they have been able to attract money even during the last few years when there was little discretionary funding available. We were very happy to be able to attract money from these companies.”
Along with Beischer is his partner. Said Beischer, “My partner, Phil St. George and I started the company in 2007. I started by career as a geologist working for Inco. Phil came up through Caminco and he made some great discoveries in Alaska and was instrumental at the start of Nova Gold and helped to increase their project by a substantial margin. Between the two of us, we know what we are looking for as geologist and what will attract funding from major companies.”
Beischer said, “At the moment, we have a very low number of shares, only 31 million shares outstanding.”
For more information on the company, visit http://www.millrockresources.com/.
Suite 800
789 West Pender Street
Vancouver, BC V6C 1H2
Office: (604) 638-3164
Toll Free: (877) 217-8978
Fax: (907) 677-3599
Melanee Henderson Investor Relations
|
|