Millrock Resources (TSX-V: MRO) CEO Greg Beischer on Advancing Several Projects with Multiple Partners, Looking for a Big Discovery
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is President and CEO of Millrock Resources (TSX-V: MRO)(OTC: MLRKF), Mr. Greg Beischer. Greg, thank you for joining me this afternoon.
Greg Beischer: Hi, Gerardo. Happy Friday to you.
Gerardo Del Real: Thank you, sir. Happy Friday to you as well. So Millrock all of a sudden has a lot of irons in the fire. I'd love to start out with news from the Liberty Bell project and maybe we can chat from there about some of the other projects that you're advancing. But good news with Liberty Bell with your partner Kinross. Can we talk about that a bit Greg?
Greg Beischer: You bet. Yeah. It's a great project that we picked up at the very bottom of the market in late 2015, at what I considered to be quite a good price but better yet Kinross agreed to come in on the project earlier this year and now we've just mounted the first exploration program.
We've got probably a dozen people in the field right now. Student geologists, recent graduate geologists all under the leadership of a project geologist, a young lady by the name Varina Zinno who is roughly 35 years old and doing a great job. She's leading the team to collect soil samples from one end of this very large property to the other so that we've got a property-wide data set to put the gold mineralization that we know exists into context. So we'll combine the soil results with past data that's been generated by other workers and merge it with airborne mag and electromagnetic surveys that Kinross graciously had reprocessed for us recently.
And so, what we're looking for in the style of mineralization is coincident magnetic electromagnetic ties, i.e., magnetic conductive rocks with anomalous soil geochemistry in gold, but also the pathfinder elements like lead, and arsenic, bismuth, and antimony. And so if we get these signs to line up they'll form drill targets that we'll drill probably in 2018. So, first good pass and it's always exciting times to jump into a new project.
Gerardo Del Real: Excellent. Now, Greg, I know it's early stage but the targets, are those skarn gold deposits and porphyry copper-gold deposits? Is that accurate?
Greg Beischer: Right. It's an early stage project, Gerardo, but the fact is there is a known gold deposit on our claims. It's a rough historic resource in excess of a couple of hundred thousand ounces and some quite thick high-grade prior drill intersections.
Now, it doesn't seem like we could extend that particular deposit in any direction but the fact is there are other very similar appearing geophysical anomalies off to the southwest that have never been drilled. So it could be that we could add ounces very quickly simply by drilling these new targets that are emerging.
Interesting country you know. There's placer gold deposits draining off the hills so we know there's definitely gold in the system but interesting topography. Everything in these rolling mountains are coated in a thick layer of gravel that makes seeing through it with geochemical methods a bit challenging, but we're using some innovative methods and hopefully we're going to be able to see what others could not in the past.
Gerardo Del Real: Excellent. Now, Greg, a couple of months back we spoke and there was company named Polaris which was looking at a high-grade copper-gold skarn target. They were in the midst of a financing at the time, has that closed, is that in the process of closing, and what does the work program look like here in the near future?
Greg Beischer: It hasn't closed yet, the transaction where our Stellar project would essentially be merged with the neighboring Caribou Dome project. Each project has a known historic resource of copper and gold, and they approached us to combine. Millrock would become a major shareholder of the resulting company called Polaris and Millrock would be the operator of explorations. We are of the understanding that the transaction has been approved by their shareholders and the Australian Stock Exchange and that they have firm orders for most of the $10 million Australian dollar financing which they were undertaking.
So we'll all know whether it's a done deal within about a week and as soon as the funding is available Millrock will begin to execute the drilling program, which should if everything goes the way it's looking, around August 1st. We're anxious to get going. The first task will be to re-drill the known Zackly skarn high-grade copper-gold deposit, to reestablish it to bring it to modern 43-101 or in this case the Australian JORC compliancy. We'll probably have two drills, one attempting to extend the deposits along strike. I think there's a strong probability that we're going to be able to do that based on the geophysical surveys that were done last year.
Gerardo Del Real: Excellent. Now the other two projects that I'm interested in, one is the Los Cuarentas project with Centerra Gold, and the other, also as a part of the alliance with Centerra, is the La Navidad project which has seen some historic drilling and has returned some pretty significant intercepts. How are things coming along there?
Greg Beischer: Yes, and the El Picacho project also. There's three now that we've got all three we've been working away despite the heat that persists in Sonora right now. We're having to be quite careful but we're continuing with fieldwork through the hot summer in anticipation that we can get the projects ready to drill this Fall. I don't know if we'll drill all three. That's in the hands of Centerra Gold, our funding partner, but I'm pretty sure we'll be drilling at least one or two of them and we're really looking forward to that. That will probably start in September or October.
So it looks like from here on out for the rest of 2017 we'll have a drill turning on one project or the other seven days a week. That, as you know, is what can make Millrock's share price go up. If we make that big discovery we'll move up higher from our current place at around 34 cents.
Gerardo Del Real: Wonderful. Now, Greg, Millrock of course is a project generator and one of the benefits there is that you keep dilution to a minimum and you can actually generate some revenue by being the operator on these projects. Is Millrock the operator on most or all of these projects?
Greg Beischer: Yep. We're the operator on all of them and so we might anticipate as it looks now that we could probably generate close to $1 million dollars in revenues through to the end of 2017. We've got roughly, well in Canadian dollars, $1.2 million at present and so if we can add $1 million to the treasury over the next six or seven months that can keep us going for quite a while.
Gerardo Del Real: Now what does the burn rate look like right now Greg? I know I'm just kind of throwing this at you here on the fly, but will that suffice here for the next six to nine months?
Greg Beischer: Yes. Absolutely. Burn rates around $150,000 US dollars per month and that includes most of the holding costs for non-partnered projects. So, yep. That will last us quite a while.
Gerardo Del Real: Sounds like a busy second part of 2017. You're generating some income, you have some exciting targets, and it looks like you're going to be drilling several of these properties so I hope that you join me as you start defining these targets and actually initiate the drill program. That's always my favorite way of seeing a junior add value so hopefully you can join me and provide the details once those are finalized.
Greg Beischer: Yep. Be very glad to, Gerardo, but what I look forward to is speaking with you after we've made a great big discovery.
Gerardo Del Real: I look forward to that as well, Greg, as do shareholders I imagine.
Greg Beischer from Millrock Resources everybody. Thank you very much. Is there anything else that you'd like to add, Greg?
Greg Beischer: Nope. All good. Thank you very much.
Gerardo Del Real: Fantastic, we'll chat soon.
Greg Beischer: Bye now.