This isn’t the first time Millrock has battled adverse markets.
Founded in late 2007, it wasn’t long before Millrock found themselves navigating through the depths of the great 2008 recession. But as a former Inco Ltd. geologist, CEO Greg Beischer has experienced much of what the cyclical mining business has to offer. After nearly 20 years in mineral exploration, he had learned enough to realize that it isn’t sustainable for a company to rely solely on the volatile markets to fund high-risk drill programs that all too often produce nothing of significance.
That insight led him and business partner Philip St. George - a former Cominco geologist who had played a leading role in two of Alaska’s most significant mineral discoveries including the massive Pebble copper-gold-molydbeum deposit and NovaGold Resources Inc.’s Donlin creek gold find - to choose a less traditional exploration model: the Project Generator Model.
Rather than raising large sums of money, which can be next to impossible in markets like these, and betting it all on a single high-risk drill program, project generators increase their chances of discovery by advancing multiple projects at once, using funding from multiple joint-venture partners to pay for exploration. For the generator, it provides a sustainable way to fund operations and gives multiple opportunities to discover an ore body. For investors, it means exposure to the upside of multiple exploration projects while minimizing the risk of any single project failing or dilution from multiple financings to fund exploration.
While the model can, at times, seem less glamorous than the stories told by single project drill plays, it’s in times like these that we really see the model paying off. Having raised $4.0M last year, Millrock is in a much different position than many juniors, over 60% of which have less than $200,000 in the treasury. As bad as times are for large sections of the junior resource sector, the Millrock CEO says “Life has rarely been better for companies like Millrock, and I have never been more optimistic for the future. We are judiciously deploying some of our cash resources to build out our property portfolio. It is definitely a buyer’s market!”
“Finding a gigantic ore body takes time, good science, quality execution and a little luck always helps” said Beischer. “Following the model has put time on our side and pulled out the market risk. We are making a little luck for ourselves by taking some chances. And it is up to us to continue to execute excellent exploration programs that can result in discoveries and a dramatic share price increase.
While most juniors are sitting dormant, hanging on to whatever little cash they have, Millrock is in the midst of executing on a $2.0M drill program. Funding for the program is coming from earn-in partner First Quantum Minerals Limited. Millrock also recently announced a strategic alliance with a large gold producer to explore for high-grade gold deposits in Alaska, as well as just recently acquired the West Pogo property from Raven Gold.
“We all know that investing success is simple.” Mr. Beischer said. “Buy things when they are low. Sell them when they are high. Whether we are talking stocks or mineral properties, they don’t get much cheaper than they are right now. Now is the time to buy!”
For more information: www.millrockresources.com
The company paid consideration to SNN or its affiliates for this article.
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