Millrock Resources (TSX-V: MRO) CEO Greg Beischer on Drill Results at La Navidad Gold Project in Mexcio & Sale of a Portfolio of Projects in British Columbia
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, how are you this afternoon?
Greg Beischer: Hey, Gerardo. I'm doing pretty well, thank you.
Gerardo Del Real: You know, tough, funny markets. You had some good news this morning in regards to drill results from the La Navidad gold project in Sonora, Mexico. The market responded and rewarded you by sending the stock down 16%. It wasn't on huge volume, but it's definitely disappointing because you hit some pretty decent intercepts considering the target type that you were looking to get to here at La Navidad, specifically at the Crossover and the Cobre prospects.
Can we talk a bit about the results? I'd love to hear your take, Greg.
Greg Beischer: Yeah, sure. I mean they are pretty good results. You know, in this part of the world, half a gram of gold per tonne of rock is actually ore grade. So, you know, when you've got things like 14 meters of 1 gram gold or 10 meters of 1.8 grams per tonne gold, that's pretty good. There was one intersection, 64 meters of over 0.5 gram, though there's multiple interpretations.
We could have possibly drilled down a more vertical structure there. But yeah, the grade is good and the thickness is not bad, I would say. Of course, we'd love to see 60-meter thick intersections across the board and know for sure then that everything is cohesive and ties together between the sections that we drilled. But we don't know that, and the only way to find out is to drill more.
Gerardo Del Real: And the issue there is the true width, right? It's tough to get an estimate of true width with what you have thus far. Is that accurate, Greg?
Greg Beischer: That, true width, and continuity of mineralized zones between the widely-spaced drill sections.
Gerardo Del Real: Now the bulk of the gold that you did find was near surface, right?
Greg Beischer: Yeah, it's all relatively close to surface and in fact partially outcrops and that's how we found it to begin with, by soil sampling. The favorable rock units that host the gold are in places exposed at surface and that's how we detected it, through soil sampling.
Gerardo Del Real: In the second release, you also sold three exploration projects in the Golden Triangle district in BC, of course. Can you speak to that a bit?
Greg Beischer: Yeah, sure can and we worked long and hard on this transaction, Gerardo. You recall the history, Millrock bought up these projects in the darkest days in November of 2015 at the very bottom in the market. We got the projects at a very, very good price at the time. We moved them along slowly, but we've been wanting to roll them into another junior company and find the right management team, a team that has a high level of technical expertise, but that also would follow the same generative exploration model that Millrock follows and follow it just as closely.
So we found that team and in fact they have brought their own projects to the company that is called Sojourn Exploration. So they will begin managing that company, they'll bring their projects, and they'll utilize Millrock's projects to form the nucleus of a well-financed, brand new, BC-centric prospect generator company. Already they're getting calls from major mining companies that are interested in not just Millrock's properties but their properties as well. So I know they'll be very successful on execution of the model and technically just can't be beat in terms of their knowledge base for British Columbia.
Gerardo Del Real: Now the immediate benefit to Millrock shareholders is that Millrock will now own approximately 19.9% of Sojourn shares. Is that correct?
Greg Beischer: That's it, yeah. And, you know, they're only valued at $0.10 today but if they make a big discovery, those shares will become quite valuable. That in turn will be of great value to Millrock shareholders, and of course we always reserve a royalty as well. So that crystallizes our royalty position on our projects there.
Gerardo Del Real: I mentioned up top that these are tough markets for junior resource companies. The gold price is drifting a bit lower. Everybody's out fishing it appears, for the most part. What can Millrock shareholders expect here once we turn the corner here in September, October?
Greg Beischer: Well, we're always drilling. We're plugging away on the Alaska Range project at the moment. We can expect some results to be published next week and they'll be rolling out, in fact, over the coming month, I would say. Every few holes that are received are meant to be released and we're lining up for further drilling in Mexico. So, there's lots of potential catalysts for the company and it sure would be nice to have some upward momentum with a favorable market but it's not there right now, that's for sure.
Gerardo Del Real: Sounds good, Greg. Well, as things kind of materialize I hope to have you back on and kind of go over the details once you finalize. I know that the next step, as far as La Navidad goes, is likely to talk with your partner Centerra and see what's next there. And then I imagine you'll be looking at some of the other projects to potentially drill out. Would that be correct?
Greg Beischer: Yup, that's it. And, you know, we've had a quite a few site inspections by other companies on our various projects, both in Alaska and Sonora, and in New Mexico for that matter. So, you know, I'm hopeful. I believe that we'll soon have some new funding partnerships materialize.
Gerardo Del Real: Fantastic. Greg, thank you very much for your time. I appreciate it.
Greg Beischer: My pleasure, Gerardo. Talk to you again soon.