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.
M. Jackson: And as a reminder, Millrock Resources trades on the TSX-V symbol MRO, and on the OTCQX symbol MLRKF.
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