Millrock Resources Inc announced that drilling has re commenced at the Galiuro project in Arizona. Vale Exploration Canada Inc, a wholly owned subsidiary of Vale SA is funding the work as part of an earn in agreement signed in 2009.
This phase of the drilling program will focus on the Fourmile target. A circular magnetic feature ringed by a strong conductive zone as identified by a ZTEM airborne geophysical survey is targeted. Intense argillic alteration is known from rock exposures and prior drilling on the west side of the structure. Millrock has pre collared the hole to a depth of 453 m using a reverse circulation drill. At 427 m leach cap rocks with abundant hematite in Laramide age andesite and quartz porphyritic intrusive rocks were identified in drill cuttings. The leach cap indicates possible proximity to a porphyry copper deposit. Depending on results, the hole may be drilled to 2,000 m depth. A second hole may be drilled contingent upon results and budget.
The target at the Galiuro property is a large porphyry copper gold deposit hidden beneath alluvium and Tertiary volcanic cover, similar in magnitude to the nearby Resolution deposit, which is being developed by Rio Tinto and BHP Billiton. The property is situated at the intersection of the Resolution and San Manuel and Kalamazoo porphyry copper trends. Because of the Tertiary volcanic cover, little exploration work has been previously done by other companies. Through careful geological mapping in combination with airborne magnetic and ZTEM geophysical surveys, Millrock has identified numerous targets that may represent porphyry deposits. Prior drilling by Millrock and VEC resulted in the discovery of porphyry copper mineralization and alteration in Cretaceous-aged rocks hidden beneath Tertiary volcanic cover rocks.
VEC has the option to earn a 60% interest in the project through exploration expenditures totaling USD 3.5 million and payments of USD 850,000. Upon completion of the current drill program, VEC will have expended at least USD 3.5 million and will be in a position to exercise its option if it makes the remaining necessary cash payments. VEC may earn an additional 10% interest for a total of 70%, by funding a feasibility study.
