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Millrock Resources completes phase two drilling on Galiuro Project

|Includes: Marathon Oil Corporation (MRO)

Vancouver based Millrock Resources (CVE:MRO) said Tuesday it completed phase two drilling and plans to continue exploration at its Galiuro porphyry copper-gold property in southeastern Arizona, with a third phase of drilling set to resume in September.

The Galiuro property, which is located in southeastern Arizona, is a porphyry copper and gold deposit hidden beneath alluvium and Tertiary volcanic cover. 

The phase two drilling program completed in May consisted of two holes, and a deepening of a hole initially drilled in 2010 for a total of 2,251 meters.

Hole Gal-1002, originally drilled to a depth of 679.4 meters in 2010, was re-entered and deepened for a total depth of 1,279.3 meters. 

Millrock said it observed phyllic dominated alteration along with minor copper mineralization. The company also said it suspected it was thought that a porphyry copper deposit may exist beneath the original foot of hole.  

However, numerous zones of weak copper mineralization were intersected from 934.8 meters to 1,181.7 meters, upon deepening the hole. 

Specifically, potassic altered porphyry was cut from 1,002 to 1,068 meters and contained elevated copper values including a zone that assayed 0.05% copper over 48.2 meters.

By the same token, the first hole Gal-1004 was drilled to a depth of 1,054.6 meters to test the cone Z Axis Tipper Electromagnetic System (ZTEM) anomaly.

The company intersected porphyry copper style propylitic alterations with traces of chalcopyrite, bornite and elevated molybdenum values at the bottom of the hole. 

Millrock said in a statement that while mineralization is weak trace amounts of copper and irregular molybdenum values coupled with the associated alteration package in geologically permissive rocks suggest a porphyry copper deposit is nearby.

The company has recommended further drilling in the area.

Similarly, the second hole Gal-1005 was drilled to a depth of 596.5 meters to test a magnetotelluric conductor with a coincident magnetic high. 

The company said it intersected Laramide granodiorite throughout the hole, and found traces of chalcopyrite, as well as low level copper anomalies. 

Additionally, the company plans to conduct phase three drilling by fall 2011. It plans to focus on the Fourmile target. 

This circular magnetic feature is ringed by a strong conductive zone as identified by a ZTEM airborne geophysical survey. Intense argillic alteration is known from rock exposures and prior drilling on the west side of the structure, Millrock said.