Millrock Resources (TSX-V: MRO) CEO Greg Beischer on Additional Staking at the Area Play Emerging at the Goodpaster Mining District in Alaska
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the President and CEO of Millrock Resources (TSX-V: MRO)(OTC: MLRKF), Mr. Greg Beischer. Greg, how are you this afternoon?
Greg Beischer: Hi, Gerardo. Doing great. It's summer here in Alaska and we're anxious to get out in the field.
Gerardo Del Real: I bet you are. The last time we spoke we talked about the fact that EMX came in at what was pretty much a 100% premium to the share price of Millrock at that time and decided to take a royalty in exchange for an interest in Millrock. And frankly, the technical expertise they provide, along with the value of the database that we spoke about the last time as well, is starting to prove itself out.
You've now staked additional claims in the Goodpaster gold district there in Alaska. And again, I got to say, even though EMX came in at $0.14 a share, I think today you trade at $0.095 a share Canadian and frankly, the database has had, I think, twice the current market cap of Millrock invested in it. So, no coincidence that it's paying dividends so quick.
Can we talk about the claims that you just staked?
Greg Beischer: Sure. Just to step back on our database, we bought up that information five years ago now, Gerardo. It represents roughly $15 million worth of exploration work that was done in the big staking rush and surge of activity after the Pogo Mine was discovered. We own it. Nobody else has it. So it gives us a great competitive edge in the district.
There's just got to be more Pogo Mines out of there. That's a great mine. It's mined almost 4 million ounces of gold so far. There's another 4 million laid out in front of them and it's great grade. It's almost half an ounce of gold per tonne. So, we know there's got to be more.
Now, we have a dominant land position throughout the district and the land is well selected based on our knowledge, based on our database of information. We bought that data up for around $50,000 total five years ago.
Gerardo Del Real: Incredible.
Greg Beischer: So paying $50,000 for something that would cost probably $20 million today was a good deal I think.
Gerardo Del Real: Well, I'm looking forward to you being able to generate – and I know you've had some interest – but being able to generate partners in the region because frankly, you have a land package that that could turn into a new camp. I don't think it's a coincidence that there is now a private Vancouver-based junior that's working nearby. Can we talk about that a bit?
It's a smart bunch of technical people that are working that area. You've got to feel encouraged that you got the jump on basically everyone other than Northern Star as it relates to the claims that were staked. And now you have a junior nearby that's doing some exploration that's going to answer some questions about that particular claim block. Right?
Greg Beischer: You bet. The name of that company is Tectonic Minerals. They announced that they're going public here in the next couple of weeks, Gerardo, and I think you will know the people. Their executive team was the team that built Kaminak Resources and made great gold discoveries in the Yukon territory, not too far away from the Goodpaster. That company was recently sold out to Goldcorp.
So now, we find them coming across the border into Alaska where one will see that it's all the same rocks and highly prospective for gold. So, they know what they're doing and yes, we saw them coming into eastern Alaska, and the Goodpaster district in particular. And so, that's why we've added on one of the blocks that divide. It's immediately adjacent to claims that they control, but we can see from our database that there are some really good gold showings just off their property, and so we've scooped them up.
It's good to have a little friendly competition. I see the potential for an area play developing here in the Goodpaster. Things are really heating up.
Gerardo Del Real: To be clear and to provide context, you've staked an additional 143 claims that covered 9,235 hectares in the Goodpaster mining district. That now totals, I believe it's something like 66 square kilometers of land. Is that correct, Greg?
Greg Beischer: That's right, Gerardo. It's a good, cohesive land position and there's more to stake out there. There's targets that we know from our database that would be good to cover. But at some point, you have to say, “okay, well we can't stake everything right now, we need a partner.”
So that's the next step for us is we want to find someone that shares our vision that this is a district-scale camp that will be a camp one day with multiple mines, and we'd like to systematically, sustainably over time, explore the entire district moving prospect after prospect forward to the point where it's ready to drill and then drill it. But that's going to take some pretty serious cash. So we're looking for a mid-tier or major company partner or private equity firm that would like to earn in and share our vision and share the costs. So, that's the next step for us.
Gerardo Del Real: You mentioned being excited to get back in the field. We all know that May tends to be the time in Alaska, May/June is a great time to be able to get back out there and explore. What do you have planned for this exploration season, Greg?
Greg Beischer: Well, I can't wait to go look at this North Pogo claim block, we call it. This is what I just love about Alaska, Gerardo. You know that the Pogo Mine is situated just south of the Goodpaster batholith. This is a large magmatic intrusion of granitic composition and is thought to have brought the fluids that form the quartz veins that host the gold at the Pogo Mine and the series of deposits on the south side of the Goodpaster batholith.
Well, it just seems a very simple concept, but no one has ever really explored on the north side of the batholith. The same host rocks are up there. The same structures that host the Pogo Gold Mine that we know exist up there. And so we said, no one's ever explored there. Ever. So, let's just take some claims, cover our bases, and get in the field and do the first pass geochemical sampling and prospecting work. And you never know what just could pop out of that very simple concept.
Gerardo Del Real: Looking forward to results from that program and details once that is ready. What else can we expect? Anything else that you'd like to add, Greg?
Greg Beischer: Well yes, our West Pogo project is readily road accessible so we can get in there really cheaply. As you know, the main prospects on our ground are within sight of the Pogo Mine portal. We know that Northern Star, the owners of that mine, are drilling away on a new discovery that seems to be getting ever closer to our claim boundary. So we're going to go out and do some sampling and mapping on our claim block while we watch the drills turning on the other side of the claim boundary and just wait and see what happens.
Gerardo Del Real: Looking forward to pictures and of course looking forward to first pass results.
Greg, thank you so much for your time. I get the feeling we'll probably be chatting soon. You're always busy and I know you got a host of other projects that you're seeking joint ventures and partners for, so I'm sure we'll have you back on shortly.
Greg Beischer: You bet, Gerardo. That'll be good.
Gerardo Del Real: Appreciate it. Thanks for your time, Greg.
Greg Beischer: Great, thank you. Bye now.