***OFF THE WIRE***
Mill City Options Carlin Gold Projects From Anaconda Gold Corp.
CALGARY, Feb. 26 /CNW/ - Mill City International Corporation (TSXV-MC) is
pleased to announce it has entered into an option agreement with Anaconda Gold
Corp. (TSXV-ANX) on Anaconda's Horse Mountain and North Star gold projects
located in Nevada's Carlin Trend.
Under the terms of the agreement, Mill City will have the right to earn a
51% participation interest in Anaconda's option agreements to purchase these
projects by spending a total of US$1 million on exploration by May 31, 2007.
Anaconda will remain the project operator until Mill City earns its interest.
Mill City can earn an additional 9% participation interest by continuing to
fund the project to completion of a bankable feasibility study.
On signing of a formal agreement, Mill City will pay $30,000 in cash and
issue 300,000 common shares to Anaconda at a deemed value of $0.20 per share.
In addition, Mill City will be responsible for making all underlying option
payments and annual assessment fees on the properties. A first phase
exploration program designed to delineate drill targets is scheduled to begin
later this Spring.
Anaconda has an option to purchase a 100% interest, under three separate
agreements, in the North Star, Horse Mountain and Rock Horse properties. Rock
Horse and Horse Mountain represent a total of 196 contiguous claims
(approximately 4000 acres), and for project planning purposes, are referred to
as the Horse Mountain project.
Both properties have had previous exploration work completed by several
mining companies in the early 1980's. As was standard operating procedure at
that time, all exploration work focused on testing for near surface gold
mineralization and ignored the deep exploration potential of the properties.
Work completed by Barrick Gold and Newmont Mining in the late 1980's generated
new exploration models for the Carlin Trend which led to the discovery of
several large high grade gold deposits at depths below 300 metres (1000 feet).
As a result, all future drilling activity will be directed at depths of 300 to
600 metres (approximately 1000 to 2000 feet).
Horse Mountain is located in Elko County, Nevada, approximately 40 km
(approx. 24 miles) northwest of Barrick Gold's Meikle gold mine on the
northwest extension of the Carlin Trend. Cameco Corporation's REN high grade
gold discovery is also situated approximately 35 km (approx. 21 miles) south
of Horse Mountain along the same prospective stratigraphy believed to underlay
Barrick's Meikle gold mine. "It's this similar combination of favourable
stratigraphy and excellent geochemistry at Horse Mountain which we find very
exciting", said James R. Brown, Chairman of Mill City.
Horse Mountain is characterized by highly anomalous gold, arsenic and
antimony geochemistry and favourable stratigraphy. The geochemical anomaly is
associated with a broad zone of silicification striking for more than 1.5 km
(approx. 0.9 miles) and centered on a ridge of jasperoid outcrops.
North Star, located 18km (approx. 11 miles) north of Newmont's Ken Snyder
gold mine, in Elko County, Nevada is centered over a large gravity high
anomaly on the Carlin Trend and shows considerable potential to be a deep,
undiscovered Carlin-type district. Gravity surveys, which have been used
extensively by mining companies in the area, have been successful in
identifying more dense Lower Plate strata which are favourable hosts for
Carlin-type gold mineralization. North Star is characterized by local
siliceous alteration, widespread decalcification and anomalous gold and
associated trace elements.
Anaconda directors Larry Kornze and Robert Schafer, who have years of
exploration experience in the Carlin Trend with Barrick Gold and BHP
respectively, will be actively involved with management in designing and
implementing this year's exploration program expected to begin in May.
Mr. Kornze was instrumental in guiding all of Barrick Gold's exploration
in the Carlin Trend in the 1980's which led to the discovery of the Betze,
Meikle, Deepstar, Screamer and Rodeo gold deposits.
Mr. Schafer was most recently Vice President - Exploration with Kinross
Gold Corp. Prior to joining Kinross in 1996, Mr. Schafer was the Regional
Exploration Manager - U.S. for BHP Minerals.
Seems to hit all the right notes. Let's wait and see.
Regards
Vaughn |
