Millrock Resources has entered into a binding letter agreement with First Quantum Minerals (FQM), which grants exclusive rights to enter into an option to joint venture agreement for the Alaska Peninsula project, located in south-west Alaska.

Under the terms of the agreement, FQM will fund an initial exploration programme, which is estimated to cost $600,000.

The exploration programme will comprise of regional geochemical sampling, geological mapping, prospecting and airborne magnetic surveys, which are scheduled to commence in the summer this year.

FQM may also elect to increase the expenditure to fund the drilling of several holes.

"This is the sort of district-scale exploration project at which Millrock excels."

Further, FQM will have the option to earn up to an 80% joint venture interest in the property through a two-stage option agreement, subject to exercise of the exclusive right by 30 November.

Millrock president and CEO Gregory Beischer said that the partnership will advance the Alaska Peninsula project.

"Our staff looks forward to performing systematic exploration and making great discoveries on these lands."

"It is important to understand the scale of this project. The land package exceeds 200,000ha. This is the sort of district-scale exploration project at which Millrock excels."

The project consists of mineral lands owned by Bristol Bay Native.

Millrock had previously made an exploration agreement with the option to lease, through which it can secure a 100% leasehold interest for mining.

The agreement covers a tract of land that holds three known porphyry copper-gold occurrences, namely Kawisgag, Mallard Duck Bay and Bee Creek, on the Alaska Peninsula.

Image: Millrock to advance its Alaska Peninsula project. Photo: courtesy of