All technical information contained in this presentation was prepared, reviewed or approved by Gregory A. Beischer, President & CEO of Millrock Resources Inc. Mr. Beischer is a Qualified Person as defined in NI 43-101.
Qualified Person Statement
This presentation includes “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statement, other than statements of historical fact, included herein including, without limitation, statement regarding anticipated completion of engineering studies, potential results of drilling and assays, timing of permitting, construction and production and other milestones, and Millrock’s future operating or financial performance are forward-looking statements. Estimates of reserves and resources area also forward-looking statements in that they involve estimates of the mineralization that would be encountered, based on interpretation of drilling results and certain assumptions, if a deposit were developed and mined. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Millrock’s expectations include financing in the debt and capital markets; uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and resources; the need for cooperation of government agencies and Native groups in the development of Millrock’s properties; the need to obtain permits and governmental approvals; risks of operations such as accidents, equipment breakdowns, bad weather, non-compliance with environmental and permit requirements, unanticipated variation in geological structures, ore grades or recovery rates; unexpected cost increases, fluctuations in metal prices and currency exchange rates, and other risks and uncertainties disclosed in Millrock’s Annual Information Form for the current year, filed with the Canadian securities and regulatory authorities, and in other Millrock reports and documents filed with applicable securities and regulatory authorities from time to time. Millrock’s forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. Millrock assumes no obligation to update forward-looking statements of management beliefs, opinions, or other factors should they change.
Forward-Looking Statements
Management
Projects:
• Commodities
• gold, copper, uranium
• Jurisdictions
Alaska, Southwest USA, Mexico
• Geologic Merit
Capital Structure
News Flow
Project Generator Business Model
Pure Exploration, Early Stage Discovery Specialists
Key Investment Highlights
Early stage exploration has the highest risk, but also the highest potential reward
Discovery creates tremendous increases in value
Few discoveries are made – risk is high
Project Generator Model increases exposure to discovery - mitigates risk by:
1. Developing multiple projects 2. Forming multiple joint ventures
Highest risk money is the first round of drilling – funded by JV partners Millrock shareholder’s money is used for project generation
Risk vs. Reward
Minimize risk but keep shareholders exposed to the rewards of discovery.
Project Generator Model
Business Partners
10% 10%
34%
$15.3M In exploration
$9.5M In exploration
$2.4M In exploration
90% Partner Funded
90% Partner Funded
66% Partner Funded
2011 2012 2013
Percentage of partner funding Percentage of Millrock funding
Exploration Expenditures
$4.8M cash on hand
Mgmt. fees & option payments offset overhead
Share Price (October 2014) ~$0.50
3-Month Average Volume: 128,000
Share Structure
Shares Outstanding 19.7M Options 497K Warrants 12.0M Fully Diluted 32.6M Market Cap $9.8M
Capital Structure: Post-finance
Major Shareholders
Management 5% Altius/Cranberry 11% Sprott-Global 9% Casey 9% Tognetti 8% Pembrook 8% Kinross 3% Teck 2% Strong Hands 25%
GREGORY BEISCHERPresident & CEO Director
SARAH WHICKERExecutive VP
PHIL ST. GEORGEChief Exploration Officer
KEITH GRANBERRYChief Financial Officer
Management Team
ROLAND BUTLERGeologist
DARRYL CARDEYFinance Executive
LARRY COOPERFinance Executive
PETER CHILIBECKAttorney
Management Team
ESTELLE CRISTO
STELLAR
FORTY MILE
Millrock Properties
HUMBLE
AUDN
AK PENINSULA
Projects: Alaska
LISBURNE
Ivanoff Bay
Perryville
Chigniks
Sand Point
Alaska Peninsula: Summary
Main Occurrences of Interest: • Bee Creek • Kawisgag • Mallard Duck
Kawisgag
Bee Creek
MallardDuck Bay
Pyramid
Alaska Peninsula: Summary
• Zoned potassic, sericitic and propylitic alteration in surface exposures
• Multi-phase diorite stock (~ 3.6 Ma) intrudes hornfelsed sediments (Jurassic Naknek Fm)
• “A” (biot-qtz-py-cp) and “B” (qtz-mo-py) style veinlets and disseminated sulfides
• Geochemical anomalies in Cu, Mo, Au
Historic work on property: • Recon surface sampling • Regional & property scale mapping • IP survey (3 lines) • Detailed ground magnetic survey • Drilling (9 holes)
Bee Creek Prospect
Hole ID Int. (m)
Au ppm
Cu ppm
Mo ppm
Comments
BC06-08 34.0 0.085 2584 41 Hfls + less Qz Diorite
BC06-09 118.0 0.126 3098 86 Hfls + less Qz Diorite and Andesite
BC06-09 76.0 0.166 4002 93 Centered on 2 faults, small And dike
BC06-09 40.0 0.212 5106 81 Hfls, centered on 2 faults
BC06-09 20.0 0.255 6607 76 Second. Cu, centered on upper fault
• Bear Creek Mining (1976) – 5 holes • BC76-02 – 500’ avg – 0.25% Cu, 113 ppm
Mo, 0.062 ppm Au
• Full Metal Minerals/Metallica (2006) – 4 holes • BC06-06 and BC06-07 – no sample
recovery due to poor drilling conditions
A-veinlet stockwork cutting intensely biotized hornfels in hole B-2.
A-veinlets (quartz-K-feldspar-pyrite) stockwork is cut and offset by cm-thick quartz-MoS “B” veinlet.
Bee Creek Prospect: Drilling
Contour Interval: 100 feet
Anomaly from 2014 data measures ~4km x 3km
Total Field & Soil Anomalies
Bee Creek 2005 Geo IP Survey
Completed: Complete compilation of all existing data Identify data gaps – layout multi-year program Systematic property-wide exploration approach – partner-funded Surface sampling, mapping, drill testing.
Next steps:
AK Peninsula: Next Steps
Mallard Duck BayDrilling
KawisgagDrilling
Bee CreekDrilling
Millrock Properties
Projects: Mexico
Millrock Properties
Rio Sonora
Catalysts
Fall 2014: Exploration at AK Peninsula First Quantum decision point Agreement on Stellar Project, Alaska (?) New Strategic Alliance – high grade gold Rio Sonora surface work Agreement on Los Chinos project, Mexico
Winter 2015: Drilling Rio Sonora Drilling Los Chinos
Summer 2015: Drilling AK Peninsula Advance Lisburne project
Goal: Have a drill turning throughout the entire year
Solid & focused foundation
Share price / development stage
Potential market change
News flow – lots of drilling coming up
Commodities – Gold, Copper, Uranium
Why Invest Now?
Brien Lundin – The Gold News Letter (5/23/2014)”Millrock appears to be getting aggressive, and it remains a buy.”
Jay Taylor (5/11/2012)"The company has some very large companies as joint venture partners, which I always like to see, because the big guys are looking for major deposits; major deposits make small market cap companies' share prices fly off the charts.”
Shane Lasley – North of 60 Mining (6/24/2012)“The project-generator model is allowing the company to capitalize on its exploration expertise and first-hand geological knowledge of Alaska and southeastern Arizona. . .and Millrock's skillful execution of the project generator model allows it cover the larger portion of its overhead through the collection of fees from its partners."
Coverage
Millrock Resources – MRO.V
Anchorage:P.O. Box 200867 Suite C – 719 E 11th Ave. Anchorage, AK 99520 Office (907) 677-7479 Fax: (907) 677-3599 Vancouver:Suite 800 - 789 W. Pender St. Vancouver, BC V6C 1H2 Office: (604) 638-8164 Fax: (907) 677-3599 TF: (877) 217-8978 www.millrockresources.com [email protected]
Contact Information