Millrock Resources (TSX-V: MRO) CEO Greg Beischer on Partner PolarX’s Impressive Drill Hole at the Zackly Copper-Gold Project in Alaska
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 morning?
Greg Beischer: Very well, Gerardo. Nice, bright, sunny day here in Anchorage, Alaska.
Gerardo Del Real: Yes sir, you got to enjoy those because after 17 years of living there, I know those are far and few between, even in the summertime.
Greg Beischer: That's true, and it's been one of those rainy summers.
Gerardo Del Real: Listen, tough market. Gold's down, silver's down, the base metals have taken a hit. We're all hoping, of course, this is a short-term process and that we get a turnaround here shortly.
Millrock, however, is doing what it always does. It's keeping active, advancing projects, whether it be for Millrock itself or with partners. This morning there were results from the Zackly Project, the copper-gold deposit in Alaska. And there's actually two pieces of news I want to touch on from Alaska, but the first were results from the very first hole that was reported today. A pretty good intercept, 54.6 meters of 0.6% copper and 2.8 grams per tonne gold. That's a pretty wide interval and there was some big, big, big grades on a portion of that, near surface as well. I'd love for you to comment on the results this morning from PolarX.
Greg Beischer: Indeed, Gerardo, it was a pretty good intersection and the thickness is what really caught our attention. A skarn-type mineralization. We, of course, think there's a porphyry lurking somewhere nearby. Maybe this is a vector towards that porphyry, but a good 55 meters, right at surface with strong gold grade. We'd have a lot more drilling to flesh it out. But if it was an at surface deposit there, that would certainly help the economics of any future mining development at this prospect. So, very encouraging intersection, for sure.
This was a hole that was drilled 850 meters away from the known high-grade copper-gold deposit called Zackly. Now I don't think we can necessarily connect this single drill hole up and say there's continuity with the deposit, but it gives one hope and certainly a lot more drilling required to test that. But I think you're going to see more results roll out from PolarX over the coming months and I think there's a good chance that the size of the resource that they've got will grow.
Gerardo Del Real: And just to be clear for people maybe not familiar with Millrock's interest in PolarX, can you explain how Millrock's shareholders benefit from success there?
Greg Beischer: Sure. We're a pretty big shareholder of PolarX. We're entitled to milestone payments of cash along the way if certain minimum resources are established and, of course, we're entitled to royalty in the case of production. So certainly Millrock's shareholders will benefit if PolarX is successful in finding an ore body.
Regardless, along the way here, Millrock is operating the exploration on behalf of PolarX with funding that they supply. We charge a modest management fee for doing that work and that helps us offset our overhead costs and keep our burn rate low for overhead expenses and generative exploration. We always want a pipeline of new projects coming in the door, so that little bit of revenue that we get from things like this is quite helpful.
Gerardo Del Real: Speaking of projects and speaking of revenue, there's been a lot of news out of the Golden Triangle recently. You recently monetized three exploration projects to a very strong technical team at Sojourn Exploration. Can you share with us the process there and the progress and how things are coming along, just kind of explain what the upside there is for Millrock as well?
Greg Beischer: Sure. We announced that transaction last week and it's been filed with the TSX Venture Exchange. All three parties involved have got tentative approval from the Exchange and we know that the financing is falling into place, so it looks like the whole transaction should be completed and off and running soon.
And so now Millrock is a major shareholder, a 19% shareholder of Sojourn Exploration. And again, we're entitled to royalties if there's ever a big mine discovered on any of the projects, at least any of the projects that Millrock contributed. Certainly Millrock shareholders can benefit if a big discovery's made because the shares that we own in Sojourn will become quite valuable.
Gerardo Del Real: Pivoting back to Alaska, Greg, you have the Liberty Bell Project. Is there any news out of that project?
Greg Beischer: Yep. We just kicked off a field program. We'll be doing induced polarization, geophysical surveys and geologic mapping over the big land package to fine tune drill targets for the 2019 season. As you know, us generators have to have a constant pipeline full of new projects coming out and this will be the next one for drilling next year.
Gerardo Del Real: Well, busy as always, Greg. I started by mentioning that it's a tough market out there for juniors right now. It's good to have that income that you generate from managing a lot of these projects and it's also good to know that you've been able to take advantage of bear markets in the past to, frankly, get into some very high-quality projects at opportunistic prices. I have to imagine you're still out there looking.
Greg Beischer: Yep. There's still a lot of opportunities, too. Things started to pick up a couple years ago, but it still kind of feels like we're dragging along bottom, especially here in Alaska we're not seeing much competition. There's ideas we've been sitting on that we haven't acted on yet. We could acquire the mineral rights, but we've just been sort of keeping our cash tight. But the day is coming you know, and this cycle's going to turn and we'll take action on those projects before that happens.
Gerardo Del Real: Perfect, Greg. Thank you very much for your time. I'm looking forward, as always, to having you back on here as soon as we get some more news.
Greg Beischer: Okay, Gerardo, thank you very much.
Gerardo Del Real: Enjoy the sunshine in Anchorage.