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Inmet Mining

Millrock Resources and Inmet Mining seal option agreement for San Jose and Dry Mountain copper projects

Millrock Resources (TSX-V: MRO) has signed an option agreement, finalising it its partnership with Inmet Mining Corporation (TSX: IMN) for the exploration of the San Jose and Dry Mountain porphyry-copper prospects in Arizona. The initial deal was reported on 8 January and now, with the signing complete, the partners are preparing to begin work.

Geophysical surveys to refine drill targets are planned for spring 2010, with drilling scheduled to follow.

The San Jose claim sits on the intersection of the exceptionally prolific Safford and Morenci porphyry trends, which combined have accounted for over 10 billion tons of copper production, Millrock said.  Freeport McMoran (NYSE: FCX) currently mines from the Safford trend. Millrock also noted that a porphyry cell was discovered by Noranda Inc in the 1990s on the San Jose claim. “Geochemical, geophysical and geological vectors indicate that a large porphyry deposit may exist just to the northeast of the area previously drilled.”

Meanwhile, the Dry Mountain claim, situated 20 kilometres south-east of San Jose, is located on the Morenci Trend, hosting a 10 kilometer (diameter) geochemical anomaly strong in copper and molybdenum. “The area is completely covered in overburden, but depth to bedrock is thought to be less than 200 m,” Millrock reported in January. “No drilling has previously been done”.

The agreement will see Inmet Mining earn a 70% interest in the two claims by spending US$4 million and making option payments of US$0.3 million. The 2010 commitment consists of an initial payment of US$50,000 to Millrock and an exploration budget of US$0.5 million for 2010. The 2010 program will include ZTEM airborne surveys and induced polarization surveys on both claims to define drill targets.

Since the initial agreement in January, Millrock has expanded its exploration efforts further in North America, with several new early-stage projects in Alaska. On 22 January Millrock reported that it had staked a block of 36 claims (2,331 hectares) west of the company’s Estelle property. The claims are all situated on the Kahiltna Terrane, Alaska, which also hosts Northern Dynasty’s world class copper-gold porphyry deposit.

On 17 February, Millrock announced it had also staked two claim blocks in the Kahiltna Terrane of Alaska, which will form the basis of two separate joint ventures with Altius Minerals Corporation (TSX: ALS). The claim blocks are named the Monte Cristo project and the St Eugene Project; in total the 55 claims span a combined 3,561 hectares. The two 50%:50% joint ventures represent the first properties to be explored through the strategic alliance between Millrock and Altius, agreed in June 2009.