Millrock Resources Inc. (
TSX: V.MRO,
Stock Forum) has generated a new uranium project named Red Basin.
The project is located in Catron County, New Mexico, west of the town of Sorroco and 18 kilometres north of the village of Datil, which is situated on Highway 60.
According to the
Millrock Resources press release, the claims are thought to be underlain by at least three uranium deposits that may be conducive for in-situ recovery (ISR) mining. Millrock has unconfirmed reports that the deposits were discovered and drilled by Gulf Minerals in the 1970s.
This is not a typical target for Millrock,” said Gregory Beischer, President and CEO. “However, ISR mining is known to be the lowest cost method by which to produce uranium and we decided to act on this target of opportunity. We were able to acquire the asset for very low cost - essentially the cost of claim staking. Uranium prices are presently low, but we anticipate this will change, potentially making the Red Basin project a valuable and profitable acquisition."
Roll-front type uranium mineralization is known in the Red Basin - Pietown District within which the property is situated. Minor historic past production has been reported from small mines off the claim block dating back to the 1950s. The uranium mineralization in the basin occurs primarily at the lower contact of the Baca Formation sandstone in association with redox boundaries and organic material. The favourable lower Baca Formation traverses the new Millrock property.
Millrock sees potential to quickly define a uranium resource and expand upon it. If uranium deposits are present, they potentially could be mined by low-cost ISR methods. However, Millrock cautions readers that there is no certainty the proposed exploration will lead to the discovery of a uranium deposit or that if discovered, a deposit could be profitably extracted.
Millrock, which has 100% ownership of the project, is currently seeking a joint venture partner.
In the search for world-class metallic mineral deposits in mineral-rich Alaska and southwest USA, 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.
On Monday, Millrock was up 14.3% and was trading at $0.12 a share. The company had a market cap of $10.4 million, based on 86.8 million shares outstanding.