Millrock Resources (TSX-V: MRO) CEO Greg Beischer on His Busy Week of Dealmaking: The El Picacho and La Navidad Projects in Mexico with Centerra and the Willoughby and Oweegee Dome Projects in British Columbia with Sojourn Ventures
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: Well, glad to be here.
Gerardo Del Real: Well, you've been very, very busy the last few weeks. There's a couple of press releases out for projects in Mexico and Sonora, the La Navidad Project and the Picacho Gold Project, and there's also news out of BC, so let's take those in order. Can we talk about the Picacho Gold Project first?
Greg Beischer: Yeah, sure. There has been a whirlwind of activity lately, Gerardo. It's funny how it goes. I've been working on these three different deals for, well in one case almost two years. They've all come to fruition the same week, within seven days of each other, so things are definitely active.
Yeah, so I'll start with El Picacho. This is a new gold project for us. We had identified it to Centerra about a year ago, under our strategic alliance. As soon as they saw the project and its attributes they said if Millrock can make the deal on it, we'll be glad to make a deal with Millrock and fund exploration on the project. It took a little while, but that's what we've done. There's some great drill targets there. We're going to have to do some groundwork first but I anticipate that by fall we'll be drilling some good gold targets there with funding from Centerra.
Gerardo Del Real: Excellent.
Greg Beischer: We've just got a steady pipeline full of projects coming through, moving each of them systematically through our process to the drill stage. We're just going to be drilling a lot of holes over the next couple years by the looks of it.
Gerardo Del Real: Now the Picacho Gold Project, it's 18 kilometers southwest of the San Francisco Gold Mine. Are there similarities there as far as the geology goes and the structures?
Greg Beischer: Very much so and you know that's a perfect analog. For listeners who don't know, San Francisco is a large open pit gold mine. The concentration or grade of gold is not particularly high, but nevertheless, Timmins Gold, the operator, makes money at it at this gold price. If we get the gold prices I think we're going to get in the coming years, then a mine like that can make a great deal of money. We've got, it's an analogous geologic position. We see the exact same low angle fault structures. We see gold mineralization in those structures, very little prior drilling has been done on the property. We intend to do the surface surveys to maximize our chances of success when we do get to drilling in this fall. Centerra's already set aside close to half a million dollars for our work on the project this year.
Gerardo Del Real: Wonderful. Now another project that you just recently announced was the La Navidad Project, and that actually was announced yesterday, if I'm not mistaken. Can we talk about that a bit because I know that's a project that you're excited about.
Greg Beischer: Yes. This deal was a long time coming. It's a similar situation to El Picacho. Again, it's one that we identified to our strategic partner, Centerra. They liked it and we've made the deal with the underlying owners. We had already staked ourselves a huge block of claims surrounding the core, where some gold mineralization is known to exist. I've visited the site earlier this spring, got some very nicely exposed, flat lying veins, a series of veins really, in a low angle fault structure. The company who we bought the claims from, or are buying them from, did drilling 20 years ago and got some quite encouraging results but never really pursued them further. So I anticipate that after a short surface program we'll select several of those holes to re-drill to confirm the results, but it's pretty clear to us that the gold mineralization goes well beyond the limits of the drilling that's been done.
There's also good potential for us to drill deeper and find parallel structures. It could be a case where we would be able to add ounces of gold to the resource in a hurry. It's a bit more advanced stage project. One we probably wouldn't have been able to pursue were it not for having the financial strength of Centerra behind us, but that's one of the great benefits of these alliance type operations for a small company like ours.
Gerardo Del Real: Well it sounds like, Greg, this is a project that's going to see some drilling later on this year possibly?
Greg Beischer: Yep, no doubt, maybe even in the summer. We're having a team meeting with Centerra in Hermosillo, Mexico at the very moment and we'll decide with them the program to put into place for the remainder of the year. I know they've set aside a substantial budget and are keen to re-drill the holes that had reported gold mineralization and to begin a program to expand it. It will be one of our premier projects for sure.
Gerardo Del Real: Excellent, now switching gears a bit, you also have news out on projects in BC. Can we talk about that for a second?
Greg Beischer: Yep. We've made an agreement with a small Vancouver company called Sojourn Ventures. This is a company that's backed by some of the who's who of the North American mining industry. They can earn now an option to purchase two of our projects in British Columbia. We'll accept shares in Sojourn as payment, and so Millrock would become a major shareholder of Sojourn, which will raise money to explore the projects. Millrock's going to operate the exploration on behalf of Sojourn, at least for the first year, since we're in the best position to do that. Our team's ready. We've got the permits in hand, and so we'll operate on behalf of Sojourn.
We've, most typically, over the history of our company made agreements with major mining companies and that's changing a bit. We've done two agreements now in which we've accepted shares in junior mining companies as payment for, at least part payment, for our assets. I just have a good feeling about this. I think that it's going to be lucrative to hold junior companies' shares in the gold market that I see coming in the fairly near future. This could be to the better benefit of Millrock's shareholders. The fact is in a hot market, junior companies can raise and spend, on exploration, a lot more than major companies are willing to spend, and so we keep it sort of even across the board. We still have our joint ventures with Kinross Gold Corporation and Centerra, but now we're starting to introduce junior partners to the equation as well.
Gerardo Del Real: It sounds like you've set Millrock up to have multiple catalysts over the summer. I know the drilling at La Navidad is something that you're excited about and something that I'm looking forward to. Hopefully we can have you back on soon, Greg, as you get the details of that drilling program.
Greg Beischer: You bet. We're probably going to publish an update to our shareholders in the near future, just there's been so much action lately, so many exploration programs all set up now and ready to go, and so once we've just firmed them up a little bit more, we will publish an update and maybe that would be a good time to look at some of these catalysts again with you, Gerardo.
Gerardo Del Real: That would be excellent. In the meantime, I encourage everyone to go to Millrock's website, millrockresources.com. The company has done an excellent job of taking the bear market that we're coming out of and frankly, executing on some deals at pretty opportunistic levels. Congratulations, Greg. I know La Navidad was a big deal for you so congrats on getting that signed off.
Greg Beischer: Yep. Thanks very much, Gerardo. Talk to you again soon.
Gerardo Del Real: Look forward to talking to you again soon. Thanks.