Millrock Resources (TSX-V: MRO) CEO Greg Beischer on Why the Golden Triangle in British Columbia is a Great District for Exploration and 2018 Plans with $1.6 Million Private Placement
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: Doing very well, Gerardo. Thank for calling.
Gerardo Del Real: Well, you have a very, very busy month of November and the month of December and, frankly, it's going to be a busy 2018. You just announced a non-brokered $1.6 million private placement. I know some of the smartest money in the business is already positioned to take a large chunk of that placement. You're also drilling at La Navidad down in Sonora and you're expecting assays there soon, and we are anticipating further assays from results in Alaska. So I wanted to touch base, see how things were coming along and get an update from you, Greg.
Greg Beischer: Great, Gerardo. Yeah, actually, one of the first things I would mention is that we announced assay results from some rock sampling our geologists did on the Willoughby Project in British Columbia. That was very exciting for us because, as you know, it's an area of high alpine terrain with glaciers so it's tough country to work in. Those glaciers are peeling back very quickly over the last couple of decades, and it's been more than a decade since any geologist has been on the ground there. And sure enough, right along the toe of one of these glaciers, we found a brand new showing of sulfides with gold in it exposed over about 250 meters. It just really underscores what a great district the Golden Triangle is in British Columbia, that there's so much more to find there. And, of course, Millrock has some excellent property positions that it's vended into junior companies, Sojourn Exploration. So that was good news to produce early this week.
Gerardo Del Real: Now of those samples, I'm looking at the release here, Greg, and it looks like there were 60 bedrock and float grab samples, 16 returned values in excess of 1 gram per tonne gold and 3 returned values in excess of 5 grams per tonne with a maximum value of 8.15 grams per tonne. That has to be pretty encouraging.
Greg Beischer: You bet. Again, it's such an exciting district because of the receding glaciers but also because it produces such high grades. Just an exceptionally well mineralized slice of the earth's crust and we're really happy to be exploring in there.
Gerardo Del Real: Excellent. Now, we touched on La Navidad a bit. How are things coming along on that front?
Greg Beischer: Great. Drilling program is in full swing. We're, I believe, on the sixth hole out of the initial planned nine, and it appears that we'll probably be adding a few more holes to that program. Assay results should be rolling out of the laboratory from the first couple of holes very soon. I'm hoping that before Christmas we can make an initial release of the first few holes, but at present we'll just have to see how that goes. Labs have been inundated with samples, not just from us but from quite a number of companies, which is a really good harbinger of things in the exploration and mining business. When you see the labs jammed up, you know there's a lot of active exploration and discoveries are going to be made.
Gerardo Del Real: Absolutely. Now, you're still expecting results from the Zackly copper-gold deposit in Alaska. Is that correct, Greg?
Greg Beischer: Yup. They should be coming out of the lab imminently, and so we'll release those results probably next week or the week after. I'm quite looking forward to seeing those, but the first release that we put out last week was quite strong. I mean, the gold and copper is really there as we suspected, but maybe more importantly is that the intersections were somewhat thicker than we had anticipated from the historic drilling done back in the '80s. It's encouraging and we're really looking forward to getting the next couple of holes.
Gerardo Del Real: Let's talk about some of those results. One intercept, hole 17007, was 14.5 meters of 2.5% copper and 2 grams per tonne gold and, more importantly, it was pretty near surface. It was from 34.9 meters. Another intercept was 5.3 meters of 2% copper and 2.7 grams per tonne gold from 9.7 meters. A third intercept was 3.5 meters at 3.9% copper and 2.2 grams per tonne gold from 99 meters, so really strong copper and gold grades there.
Greg Beischer: Yep. You know, it's quite a high-grade compact deposit. That intersection of 14.5 meters, that's a pretty wide intersection, so we were quite pleased about that. Of course, we're thinking, have been thinking all along, Gerardo, that this skarn, this high-grade deposit, is leading us into and it is a sign of a much larger prize, a copper-gold porphyry. We do keep seeing those signs in the drill cores. We'll look forward to an even more robust drilling program in 2018 that our partner, PolarX, intends to fund and that we'll execute on their behalf. We're closing in and very excited to be working on this project.
Gerardo Del Real: Let's talk about 2018. The $1.6 million, obviously, is meant to get you through 2018. You have multiple, multiple drill programs across different jurisdictions. Can you talk about what you're expecting out of 2018, and what shareholders can expect from Millrock Resources?
Greg Beischer: Sure. At this point, it's shaping up like our partner-funded exploration budget will be on the order of $8.5 million U.S. dollars and, of course, as operator, we'll generate quite a bit of revenue from doing that work on behalf of our funding partners. That helps keep our overhead low, offsets it substantially. But we really see things coming around in 2018 generally in the markets. I can see already, between busy assay labs, drilling companies not having a lot of drills available, I just feel that the market is really coming, and so I think this is Millrock's last chance to pick up some further projects that we've had our eye on but haven't acted on for purposes of funding and timing. We think the timing is right now, and we think 2018's going to be a great year of exploration with a lot of funding available from both majors and juniors. We're raising money to act on acquisitions of those properties and generating more.
Gerardo Del Real: Well, you have a lot of assays coming back, hopefully before year-end, so I look forward to having you back on, Greg, so we can talk about those.
Greg Beischer: Great. Well, we should have the results soon and I look forward to presenting them to you, Gerardo.
Gerardo Del Real: Greg, thank you very much for your time. I appreciate it.
Greg Beischer: All the best. Bye now.