Millrock Announces Option Agreement with MINE Discovery Fund FOR El Batamote Copper Project, Sonora, Mexico
MILLROCK RESOURCES INC. | Suite 1000 – 355 Burrard St. | Vancouver, BC V6C 2G8
Tel: 604 638 3164 | Fax: 907 677 3599 | www.millrockresources.com
NR: 21-17
MILLROCK ANNOUNCES OPTION AGREEMENT
WITH MINE DISCOVERY FUND FOR EL BATAMOTE
COPPER PROJECT, SONORA, MEXICO
VANCOUVER, BRITISH COLUMBIA, November 8, 2021 – Millrock Resources Inc. (TSX-V:
MRO, OTCQB: MLRKF) ("Millrock" or the “Company”) is pleased to announce it has signed a
binding letter agreement (“Letter Agreement”) with Mine Discovery Fund Pty. Ltd. (“MDF”)
concerning its El Batamote porphyry copper exploration project in Mexico. MDF is a private
Australian company. In good faith, MDF has made an initial US$50,000 cash payment upon
signing the Letter Agreement. A definitive agreement (“Definitive Agreement”) has been
prepared will be signed immediately following the formation of a Mexico subsidiary company by
MDF. MDF has placed Batamote into a wholly-owned subsidiary company called Latin America
Copper Limited(“LatCopper”) along with other assets in Chile. MDF indicates it has commenced
compliance documentation for a potential ASX or TSX listing in the first half of 2022.
Millrock President and CEO Gregory Beischer commented: “Batamote has excellent potential to
discover a porphyry copper deposit. We know already that breccia-style and porphyry copper
mineralization is present. We are particularly excited to drill-test beneath what appears to be a
leach cap alteration zone at a prospect called El Choclo NW. The project is situated within a belt
that has produced very large porphyry copper deposits being mined by others as evidenced by
the Cananea and La Caridad mines”.
Latin American Copper Director Joseph Webb commented: “With the addition of El Batamote,
LatCopper has three exceptional cornerstone exploration assets with evidence of Tier 1 scale
potential in the globally significant copper belts of Latin America. El Batamote is 25 kilometers
northwest of Grupo Mexico’s La Caridad copper mine (5.98 billion tonnes at 0.34% copper
equivalent) with an untested leach cap identified along strike from known mineralisation. This
indicates potential for supergene mineralisation at Choclo. The Bata Sur definitive mineralised
porphyry system intersected by historic drilling remains open along strike”.
Under the terms of the Definitive Agreement, LatCopper will have the option to purchase a
100% interest in the concessions that underlie the Batamote copper project. To earn the
interest, LatCopper will have to make cash payments totalling US$1,000,000 over five years,
execute US$6,000,000 dollars in exploration work, and pay Millrock US$250,000 in shares
when LatCopper becomes a publicly listed company. In the event that LatCopper exercises the
option to purchase the Batamote project, annual advanced minimum royalty (“AMR”) payments
will be triggered. The first payment will be US$50,000 and the payment will increase by
US$50,000 each year until a cap of US$500,000 is reached. Annual payments will then remain
MILLROCK RESOURCES INC. | Suite 1000 – 355 Burrard St. | Vancouver, BC V6C 2G8
Tel: 604 638 3164 | Fax: 907 677 3599 | www.millrockresources.com
Millrock Options El Batamote Copper
Project to Mine Discovery Fund
Page 2
at the capped level until a mine reaches commercial production. At that point, a Net Smelter
Return production royalty of 1.0% will be triggered. Any AMR payments made by LatCopper can
be credited against production royalty payments.
About the El Batamote Project
The project is located 100 kilometers south of the Sonora – Arizona border and 140 kilometers
north of the mining hub of Hermosillo in northeastern Sonora State, Mexico. The project is fully
accessible by road and covers nearly 4,000 hectares. Millrock previously purchased the
concessions and historical exploration data from a subsidiary of Teck Resources Ltd., as
announced by Millrock in a November 2015 press release. The project is situated within the
Cananea-La Caridad Copper Porphyry belt (Figure 1). This district-scale structural trend is
situated within the larger North American porphyry copper province containing over 20 copper-
molybdenum deposits and mines in Arizona, New Mexico, and Sonora.
Figure 1. Project location map.
El Batamote contains alteration and geochemistry characteristics of a Cu-Mo porphyry system.
Important historical work has been conducted on the property by large companies such as
Phelps Dodge, BHP, Noranda, Peñoles, and Teck. Abundant information was generated by
MILLROCK RESOURCES INC. | Suite 1000 – 355 Burrard St. | Vancouver, BC V6C 2G8
Tel: 604 638 3164 | Fax: 907 677 3599 | www.millrockresources.com
Millrock Options El Batamote Copper
Project to Mine Discovery Fund
Page 3
prior workings in the south and central part of the claim block and includes regional and semi-
detail mapping, geochemistry, petrography, spectrometry, geophysics and drilling with more
than 10,000 meters of diamond core having been drilled.
The exploration led to the discovery of several key prospects: Bata Sur, El Choclo NW and El
Choclo West (Figure 2). Review of the historic data has led Millrock geologists to make new
exploration observations, conclusions, and recommendations. Preliminary plans include
geophysical surveys at El Choclo NW, where a possible leach cap is situated adjacent to known
porphyry mineralization. No drilling has been done beneath the alteration zone. At the Bata Sur
prospect, breccia pipe style mineralization has been intersected by prior drilling. Drilling is
recommended to test for higher grade and to test previously untested geochemical anomalies.
Millrock has drilling permits in hand.
Figure 2. Prospect Location Map
The lithology and alteration at Batamote are similar to that found at the La Caridad and
Cananea mines. The mining concession covers Late Cretaceous Laramide age intermediate
composition volcanic sequences which are intruded by a large, multi-phase batholith with
MILLROCK RESOURCES INC. | Suite 1000 – 355 Burrard St. | Vancouver, BC V6C 2G8
Tel: 604 638 3164 | Fax: 907 677 3599 | www.millrockresources.com
Millrock Options El Batamote Copper
Project to Mine Discovery Fund
Page 4
multiple, mineralized porphyry pulses along a northwest-trending structural corridor. Porphyry
dikes cut the system and are followed by later, mid-Tertiary post-mineral tuffaceous rocks, all of
which are cut by long-lived northeast-trending and north-south fault structures. Intermediate
volcanic rocks are the main host to copper mineralization. These rocks contain strong
hydrothermal alteration related to porphyry-type systems in a three-kilometer by six-kilometer
area that on the west side, is truncated by north-west to north-south trending post-mineral faults.
Quaternary gravels cover bedrock west of these faults, but porphyry mineralization may be
concealed below as potentially indicated by geophysical surveys at Choclo W.
Qualified Person
The scientific and technical information disclosed within this document has been prepared,
reviewed, and approved by Gregory A. Beischer, President, CEO, and a director of Millrock
Resources. Mr. Beischer is a qualified person as defined in NI 43-101.
About Millrock Resources Inc.
Millrock Resources Inc. is a premier project generator to the mining industry. Millrock identifies,
packages, and operates large-scale projects for joint venture, thereby exposing its shareholders
to the benefits of mineral discovery without the usual financial risk taken on by most exploration
companies. The company is recognized as the premier generative explorer in Alaska, holds
royalty interests in British Columbia, Canada, and Sonora State, Mexico, is a significant
shareholder of junior explorer ArcWest Exploration Inc. and owns a large shareholding in
Resolution Minerals Limited. Funding for drilling at Millrock’s exploration projects is primarily
provided by its joint venture partners. Business partners of Millrock have included some of the
leading names in the mining industry: EMX Royalty, Coeur Explorations, Centerra Gold, First
Quantum, Teck, Kinross, Vale, Inmet and, Altius as well as junior explorers Resolution,
Riverside, PolarX, Felix Gold, Tocvan, and now Mine Discovery Fund.
About Mine Discovery Fund
Mine Discovery Fund (MDF) is a private investment vehicle backed by some of the industry’s
leading technical advisors and professional mining investors. MDF focus is on Tier 1 orebody
discovery in the jurisdictions that provide the highest probability of exploration success (in the
most fertile Tier 1 Belts and in areas with clear pathways for development potential.
ON BEHALF OF THE BOARD
“Gregory Beischer”
Gregory Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT:
Melanee Henderson, Investor Relations
Toll-Free: 877-217-8978 | Local: 604-638-3164
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MILLROCK RESOURCES INC. | Suite 1000 – 355 Burrard St. | Vancouver, BC V6C 2G8
Tel: 604 638 3164 | Fax: 907 677 3599 | www.millrockresources.com
Millrock Options El Batamote Copper
Project to Mine Discovery Fund
Page 5
Some statements in this news release may contain forward -looking information (within the
meaning of Canadian securities legisl ation) including without limitation the intention to mount
further exploration including drilling in 2021 and 2022 , and the intention to enter a definitive
agreement with Mine Discovery Fund . These statements address future events and conditions
and, as such, involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by the statements.