The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Millrock Resources Inc. June 14 said it has entered into agreements to option its Willoughby and Oweegee Dome projects in the Golden Triangle region of British Columbia to Sojourn Ventures Inc., a Vancouver, B.C.-based exploration company.
To earn full ownership of Willoughby, Sojourn must issue 1.84 million shares to Millrock over the next two years and complete C$2 million of exploration on the property over the next three years.
For ownership of Oweegee, Sojourn must issue 2.3 million shares over the next two years and complete C$2 million worth of work over the next three.
As a result of the 4.14 million shares to be issued, Millrock would own roughly 15 percent of Sojourn's issued and outstanding shares and will have the right to name one director to Sojourn's board.
Millrock will retain a 1.5 to 2 percent net smelter return royalty on the properties being optioned to Sojourn.
"Historically Millrock has made exploration agreements primarily with major mining companies. However, we anticipate that shares of junior gold exploration companies will do well in the coming years,"" said Millrock President and CEO Gregory Beischer.
The Willoughby property, which lies 25 kilometers (16 miles) northeast of Stewart, has a long exploration history including two phases of drilling.
Highlights from drilling in 1989 and 1995 include 20.5 meters averaging 24.99 grams per metric ton gold and 184.22 g/t silver; and 2.9 meters of 383 g/t gold and 213.6 g/t silver.
The Oweegee property, which lies 80 kilometers (50 miles) northeast of Stewart, also has a long exploration history that includes airborne geophysics, ground sampling and drilling.
One hole drilled there in 2007 cut 138.67 meters averaging 0.189 g/t gold and 0.074 percent copper, including a 17.14 meters section that averaged 0.468 g/t gold and 0.11 percent copper.
-SHANE LASLEY
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