Millrock Resources Inc. is a premier prospect generator to the mining industry. In the search for world-class metallic mineral deposits in mineral-rich Alaska, southwest USA, and Mexico, 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. Millrock currently has twenty active exploration projects, eight gold-copper and zinc properties in Alaska, a uranium project in New Mexico, and eleven gold, silver and copper projects in Mexico. Funding for drilling at Millrock’s exploration projects primarily comes from its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: First Quantum, Teck, Kinross, Vale, Inmet and Altius.
Millrock Resources - Corporate Presentation - June 2015
1.
2. 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
3. • 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.
4. 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
5. • As investors, you should be aware that what is presented here contains forward looking statements about what the
Company plans to do in the future.
• While we do our best, there is no guarantee that we will necessarily be able to accomplish the planned programs or
achieve the results we project.
• To date however, Millrock has established a reputation for delivering on its plans.
6. 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
7. • Here are the most important parameters that an investor should consider when investing in a junior exploration and
development company – Millrock scores highly on all fronts.
• Competent management, focused on commodities with a bright future in jurisdictions with low country risk, our goal is to
discover a giant ore body and move it through to feasibility before selling our interest. Therefore, we focus on geological
terranes and deposit models where giants are possible. This primarily means porphyries, pluton-hosted gold deposits
and low production cost uranium deposits.
• We are a Project Generator company. Millrock capitalizes on its knowledge and operational expertise in Alaska, the
southwest USA and Mexico. By creating numerous exploration opportunities and making joint-venture agreements, we
reduce exploration risk.
• Millrock is a pure exploration company. Our objective is to find a giant ore body and sell our interest to a major mining
company, while at the same time greatly increasing shareholder value. We have formed the foundation of a premier
Project Generator company that will be a leader in our subsector and the best in our jurisdictions.
8. 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.
9. • This chart shows an ideal stock price chart of the perfect scenario from early stage exploration to mine production. The
real potential for major share price gains is in initial discovery and again when production nears.
• The search for mineral deposits is inherently risky – a lot of money is spent by explorers but few discoveries are made.
However, the discovery of a mineral deposit creates tremendous increases in share value – high risk but high reward.
• Millrock reduces this inherent risk by following the project generator business model. Following the model increases
Millrock’s exposure to discovery and mitigates its risk by 1) developing multiple projects at once and by 2) forming
multiple joint ventures. Millrock leverages its knowledge and ability to generate high quality projects to attract other
companies as partners that fund exploration.
• By partnering our projects, other companies pay for the early, highest risk exploration, in order to earn an initial interest
in Millrock’s projects. Millrock shareholders are still exposed to the benefits of discovery, but a substantial amount of the
exploration cost has been mitigated. This significantly increases the dollar value of exploration Millrock is able to
complete each year, while lowering the need to raise capital and dilute shareholders, helping the company stay
sustainable.
11. • This slide illustrates how the Project Generator model works.
• Early stage exploration is one of the highest risk of capital in any business in the world. Most projects never result in ore
body discovery. Most junior explorers have an idea, raise money by selling shares, drill holes, and fail to find an ore
body. The company ultimately fails and shareholders lose their investment.
• Millrock greatly reduces this risk by using its shareholder’s money for only the earliest stages – which are relatively
inexpensive exploration – and mineral right acquisition. We always find a partner company to fund drilling, the most
capital intensive part of exploration. In addition, the funding partner makes cash payments and, in the case of a junior
company partner, share issuances to Millrock to complete the earn-in.
• If a deposit or an ore body is discovered during the earn-in period a joint venture will be formed. Millrock will contribute
its pro-rata share of future exploration costs. At this point the risk of exploration failure has been greatly reduced.
Millrock shareholders will realize strong financial gains upon exploration success, sale of a discovery asset, or, if we
retain the asset, when profitable mining occurs.
13. • This slide shows the various companies with which we have made joint exploration agreements. Current partners
include First Quantum Minerals and Teck.
• For the investor, selecting junior exploration companies in which to invest can be a daunting task. Investors are
bombarded by pitches from promoters and the prudent investor needs to perform careful due diligence.
• In the case of Millrock, a significant amount of due diligence has been done for you by geologists and mine finance
experts at some of the biggest mining companies in the world. These companies have invested millions to earn an
interest in Millrock’s projects, and some are major shareholders of Millrock. These companies do not give out millions of
dollars unless they see potential for large, highly valuable metal deposits and competent management.
15. • Millrock has a track record of consistently being able to attract partners to fund exploration on its projects.
• Since 2008, Millrock has been able to expend over $40M on exploration, recovering 85% of all of its exploration
expenditures.
• Even in sustained downturns such as the currently prevailing market, Millrock has been able to attract partners to fund
exploration.
16. $2.6M cash on hand
Mgmt. fees & option payments offset overhead
Share Price (June 2015) ~$0.26
3-Month Average Volume: 8,000
Share Structure
Shares Outstanding 19.8M
Options 1.5M
Warrants 12.6M
Fully Diluted 33.9M
Market Cap $5.0M
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%
17. • Millrock has adequate cash resources on hand, holding over $3.8M.
• Because we earn income from option agreement payments and management fees our burn rate is very low. This cash
can last a long time.
• The stock is tightly held by highly influential resource stock fund managers and individuals. Key participants in the
recent financing have agreed not to sell any stock for two years.
• Millrock stock is very highly leveraged. With any exploration success very strong share price increases should be
realized.
• With a rising gold price, excellent copper prices, growing investor confidence, and coming news flow there is potential
for Millrock’s share price to increase dramatically.
18. GREGORY BEISCHER
President & CEO
Director
PHIL ST. GEORGE
Chief Exploration
Officer
KEITH GRANBERRY
Chief Financial
Officer
Management Team
19. • This is our team. All members of the executive team are based out of Anchorage, Alaska.
• Greg Beischer spent much of his career as a Mining Engineering Technologist and Geologist with Inco, working from
bases all over Canada, ending up as Exploration Manager in Alaska. After leaving the company he went to work for an
Alaska Native Corporation, helping them develop their mineral, oil and gas resources. In so doing, Greg grew excellent
trust relationships with the Native companies that are paying off for Millrock now. Alaska Native Corporations make
great business partners. He has served in many leadership roles throughout Alaska, including Alaska Miners
Association President, BLM Advisory Board Chairman and Alaska Minerals Commission member.
• Phil St. George discovered Alaska’s Pebble deposit 25 years ago as a mid-level geologist for Cominco. The great work
done subsequently by Northern Dynasty Mines has shown this to be an enormous porphyry deposit containing billions of
pounds of copper and over 100 million ounces of gold. Phil sits on the Board of the Truth about Pebble organization, as
well as the University of Alaska Geology Department Advisory Committee. Phil was VP Exploration for Novagold in its
early years, and led the team that took one of Alaska’s other giant gold deposits, Donlin Creek, from 2 million to 20
million ounces. Phil is a recognized leader in the identification of economic copper +/- gold deposits.
• Keith Granberry serves as Chief Financial Officer. A graduate of Gonzaga University and has experience in both public
and private accounting.
21. Millrock has been able to attract strong Board of Directors that help guide the company and ensures it focuses on
executing the Project Generator model:
• Roland Butler – Co-founder of Altius Minerals, one of the most successful project generator companies of all time.
Currently, CEO of Callinan Royalty Corp.
• Darryl Cardey – Founder of Underworld Resources - taken over by Kinross after Yukon gold discovery.
• Peter Chilibeck – Attorney previously with Falconbridge, Northern Telecom and IMAX.
• Larry Cooper – Finance executive previously with Wells Fargo bank, now an independent consultant servicing Millrock
and several Alaska Native corporations.
• Greg Beischer – President and CEO of Millrock Resources
23. Project highlights:
• This is the current slate of projects held by Millrock in Alaska.
• We are presently active on the Alaska Peninsula with partner First Quantum.
• We have a joint venture with Teck at the Estelle project.
• The Stellar copper gold project and the Lisburne zinc project are new for Millrock. We anticipate securing a funding
partner for these projects soon.
• The Company is seeking partners for the various projects that do not presently have partners.
25. The following is the summary of our Alaska Peninsula project.
• It is located out to the west of Kodiak Island and is a big piece of real estate.
• Native owned lands are shown in light red.
• The Area of Interest subject to our agreement with Bristol Bay Native Corporation (BBNC) is outlined in dark red
• BBNC owns the minerals on the lands in the Area of Interest.
• Most of the surface is owned by village corporations.
• The Chigniks – Chignik Lagoon and Chignik Bay are small communities each of less than 200 people, but are bustling
fishing villages in the summer months
• Perryville is a quiet Native community of 100 or so residents….or at least is quiet when Mount Veniaminoff is not
erupting – it is a fairly active volcano that erupted as recently as last June.
• Ivanoff Bay is nearly abandoned – there is one resident family.
• We are working closely with all the communities and have established good relationships.
• First Quantum is funding the work we are doing.
26. Main Occurrences of Interest:
• Dry Creek
• Kawisgag
• MDB
Kawisgag
Dry Creek
MDB
Pyramid
Alaska Peninsula: Summary
27. There are three main porphyry occurrences of interest on the Alaska Peninsula:
1. Dry Creek
2. Kawisgag
3. MDB
28. • 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)
Dry Creek Prospect
29. Picture: View looking southwest at main ridge – gossan = potassic-alteration zone, drill pads in photo
Prospect Highlights:
• Broad geochemical anomaly in Cu in soil
• IP anomaly in valley remains untested
• 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
Historic work on property:
• Recon surface sampling
• Regional and property scale mapping
• IP survey (3 lines)
• Detailed ground magnetic survey
• Drilling (9 holes)
30. 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.
Dry Creek Prospect: Drilling
31. 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
• BC06-09 – 118m, avg 0.3% Cu and 20m, avg 0.6% Cu
• BC06-06 and BC06-07 – no sample recovery due to poor drilling conditions
32. Contour Interval: 100 feet
Anomaly from 2014 data
measures ~4km x 3km
Total Field & Soil Anomalies
33. • The magenta and red colors represent magnetic high areas.
• Soil geochemical sampling shows a copper and gold rich core, with molybdenum plus iron and sulfur.
• Lead occurs peripherally, with zinc and manganese creating a halo around the entire anomaly which measures about 3
km by 4 km
35. • This is an IP pseudosection. The lower graph shows chargeability. Red colors mean there are metals in the ground.
• You can see that a hole drilled without benefit of this survey came very close to the target.
• Those geologists were on the right track but just didn’t quite drill far enough.
• We propose to re-drill from this location to a deeper depth to test that strong IP chargeability anomaly.
37. • This slide shows an IP pseudo section. The red and magenta colors in the section indicate high chargeability and
therefore possibly disseminated sulfides.
• The red and magenta colors at the top of the slide represent very strongly anomalous copper in soil, indicating the
presence of copper minerals in the rock beneath.
• In 1976 Bear Creek Mining drilled hole BC76-05. That company did not have the benefit of this IP geophysical
survey. They stopped the hole at a depth of 100 m. The upper half of the hole intersected ~0.15% copper but values
decreased down hole.
• In 2006, after running the IP survey, Full Metal Minerals realized that hole BC76-05 may have stopped short of the IP
chargeability anomaly. Unfortunately the hole was lost and the target was never tested.
38. 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
MDB
Drilling
Kawisgag
Drilling
Dry Creek
Drilling
39. At this point Millrock has fully familiarized itself with what has been done on the project and have identified the data gaps.
We have found a partner to fund the work and we are executing the work now. All three prospects will be ready to drill in
2015.
• Great mineral potential – proven fertile environment for porphyries and epithermal deposits, but low degree of prior
exploration.
• There have really only been two phases of exploration over this enormous area – Bear Creek in the 1970s and Full
Metal – Metallica in the 2000s.
• Exploring here is not that easy – lots of weather and mountains which makes exploration challenging. But everything
can be barged to site and there is accommodations available in the villages.
• The good news is that deep water ports are close by. This will be important for mine development, logistics and
economics.
• BBNC and the village corporation have been supportive of our exploration activities and we look forward to expanding
our relationships in this region as our project grows.
41. • This map shows the location of the 12 projects that Millrock secured through its recent purchase of Pembrook Mexico
Holdings.
• We are making a major push to find funding partners for these projects and are confident we will be successful.
• We intend to aggressively acquire more projects in Mexico.
• Through the purchase, we not only acquired 12 projects, but a highly valuable proprietary database of information, as
well as people with operational expertise.
• We will be able to generate many valuable projects that will attract major, mid-tier and junior companies.
• By sticking with our business model, we will be very active explorers as the markets improve, giving our shareholders
great opportunities to realize share price increase from a discovery.
42. Catalysts
Summer 2015: Sign deal with FQM on the AK Peninsula.
Execute $2.0M drill program on the AK Peninsula.
Expand property holdings through strategic
alliances and independent exploration.
Fall 2015: New property deals in Alaska and Mexico.
Exploration and drilling throughout fall/winter.
43. • Throughout 2014 we made bold moves to position us for the future.
• First, we bought an entire Mexican exploration company with 12 projects and data. This is already paying off with
partner funded programs on our Rio Sonora project and more interest in others.
• Second, we restructured the company, consolidating the shares on a 10 for 1 basis, while raising $4.0M, which is
adequate cash to run the company and grow our property portfolio even more.
• This resulted in our company being very tightly held by influential investors that will make sure the investing world knows
when we have exploration success.
• Looking at 2015, we have a $2.0M drill First Quantum-funded drill program on our Alaska Peninsula project, as well as a
number of deals in the works on other Alaskan and Mexico projects.
• Each drill hole is an opportunity to discover the ore body we are looking for.
44. Solid & focused foundation
Share price / development stage
Potential market change
News flow – lots of drilling coming up
Commodities – Gold, Copper, Uranium
Why Invest Now?
45. • Given our current share price this is an excellent entry point for new shareholders or a great chance for existing
shareholders to average their price down.
• We are three and a half years into a down market, and there’s sign the cycle should change soon.
• Over the next few months, Millrock will have a lot of drilling news coming out.
• We are focused on commodities that have strong fundamentals and will be in demand in the coming years.
46. 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
47. • Millrock has been steadily gaining traction and visibility. Influential and knowledgeable stock analysts are speaking
positively.
48. 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
info@millrockresources.com
Contact Information