Source: Maurice Jackson for Streetwise Reports 08/10/2018
Gregory Beischer, president and CEO of Millrock Resources, in conversation with Maurice Jackson of Proven and Probable, discusses his company’s assets in Mexico, the sale of its Golden Triangle assets and future plans for the prospect generator.
Maurice Jackson: Joining us today is Gregory Beischer, the president, CEO, and director of Millrock Resources Inc. (MRO:TSX.V; MLRKF:OTCQX), a premier project generator.
I understand that you have some exciting news for us for current and prospective shareholders. Mr. Beischer, take us to Mexico, where Millrock Resources just completed its second phase of core drilling at the La Navidad Gold Project. What can you share with us?
Gregory Beischer: We are satisfied with the drill program results of 3000 meters to fully test the Cobre and Crossover prospects, and we hit gold in just about every hole. Pretty long, anomalous sections of mineralization in the core. What we presented in the press release are the best of the best, but the higher grade or thicker intersections only. And there’s some decent widths there with some pretty decent grades. So, we were pleased. More drilling still remains to really understand the significance whether some of these intersections join together into some sort of a cohesive deposit that could be economically mined.
We would have liked to have seen a few thicker intersections. In that part of the world, for the type of mining that would be done, pretty low grade is minable, down as little as 0.5 a gram of gold per ton. But you need pretty thick volumes or thick intersections to make big volumes of material to mine. So, Millrock and Centerra will be considering these results over the month, seeing how we think they all tie together, and then make a decision about the project going forward.
M. Jackson: Millrock has some additional news regarding drill Hole NV010, which was discovered in the first phase of the core drilling. What can you share with us?
G. Beischer: It was Hole 21, Maurice, that had quite a thick intersection of gold, over 60 meters. So that’s definitely the sort of width we’re looking for. One interpretation is that we drill partially down a vertical structure. And if that’s the case, then that 60 meters is not a true width and not as significant as it might first appear. There’s alternate interpretations, though, and if it is a 60-meter thick intersection, that’s the sort of thing we’re really looking for at that grade. But we won’t be able to know for sure which interpretation is correct until more drilling is done.
M. Jackson: That’s my next question here for you, Gregory. What is the next step at La Navidad, and when can we receive an update?
G. Beischer: Shareholders will receive an update before the end of August. As I mentioned, we’ll have a team meeting with our partner, Centerra Gold, at the middle of the month and make a decision about the project’s next step from there.
M. Jackson: Moving on to British Columbia, Millrock Resources has just executed a definitive agreement on three projects with Sojourn Exploration. Please share the details of this transaction.
G. Beischer: This is something we’ve worked long and hard on and I was really glad to finally be able to announce this today. Millrock has vended into Sojourn Exploration, another TSX Venture Exchange listed company, our three projects in the Golden Triangle that we bought back in 2015. We are selling them to Sojourn Exploration for a large number of shares in this new start-up, and we received some cash reimbursement for exploration work that we funded last year.
There will be a new technical team coming into Sojourn, and they’re coming with four of their own projects. And these are geologists that we’ve known for some time now. They are top-notch technical talent. In fact, I don’t think there could be much better. One of the main principals of the company basically wrote the book on Northwest British Columbia metallogeny.
These people are proven explorers. They’re proven generators. And this is what we wanted to find, geologists who would run the company and follow rigorously, as does Millrock, the project generator model. And these fellows already have established a track record, and command respect from major mining companies. And, in fact, there are several major mining companies already lined up to go look at the projects in the coming weeks. So, I know that they’ll be successful in securing funding partners for the projects, and we’ll see exploration going on.
So, for Millrock, it’s great, because now we have exposure not just to the three projects that we acquired in British Columbia a couple of years ago, but the four others that these gentlemen are bringing to the company. And they’re pretty darned good and interesting projects that have a chance of success. So, we’ll be content to be large shareholders; probably in the order of 19% of the company will be owned. And if they have exploration success and those shares become highly valuable, that’s going to benefit Millrock shareholders.
M. Jackson: That’s another classic display of good business acumen by Millrock Resources. So, you have the shares, and you also received some cash. Share with us, what do you plan to do with the capital from these sales?
G. Beischer: It’s not a huge amount of capital, but it’s always welcome to put that into our treasury. And we just keep doing what we’re doing, Maurice. It’s got to be a constant pipeline of new projects. So, that money will be used in part to generate more projects elsewhere. I will say that we’re not going to generate more projects in British Columbia. When we bought those projects, it was a target of opportunity at what appears to have been the very, very bottom of the market, in late 2015.
But, we’ll leave it to Sojourn to be one of the better project generators in BC. And look, there’s a lot of competition in British Columbia, a lot of smart geologists. So, we’ll stick to Alaska, where there’s a lot more elbow room, and Sonora, where there are really good chances of finding mines. So, we’ll deploy the capital to generate more projects is the short answer.
M. Jackson: Congratulations on all fronts. This is quite impressive. As a shareholder, I wouldn’t expect anything less from Millrock Resources. Before we leave, Mr. Beischer, last question. What did I forget to ask?
G. Beischer: We always like to talk about the price of gold because, as you know, even though Millrock explores for copper, and zinc, and even uranium, so much of capital availability seems to depend on the price of gold. And it’s gone down. No idea what it’s going to do any more. I think it’s going to take a surging gold price before investor interest will really pour into the mining markets. And some of the things I read tell me a big rise up is imminent, but we’ve seen that before. So, I’m not sure, but I know it has a big effect on junior explorers.
M. Jackson: Gregory, if someone listening wants to get more information regarding Millrock Resources, please share the contact details.
G. Beischer: Please visit our website at www.millrockresources.com and or contact Melanee Henderson of our investor relations office who will be glad to take your call and answer any questions.
M. Jackson: And as a reminder, Millrock Resources trades on the TSX-V symbol MRO, and on the OTCQX symbol MLRKF.
And last but not least, please visit our website www.provenandprobable.com where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.
[NLINSERT]
Disclosure:
1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Millrock Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Millrock Resources is a sponsor of Proven and Probable. Proven and Probable disclosures are listed below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Millrock Resources, a company mentioned in this article.
Images provided by the author.
Proven and Probable Disclosures:
Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.
The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. You should not make any decision, financial, investments, trading or otherwise, based on any of the information presented on this forum without undertaking independent due diligence and consultation with a professional broker or competent financial advisor. You understand that you are using any and all Information available on or through this forum at your own risk.
( Companies Mentioned: MRO:TSX.V; MLRKF:OTCQX,
)