***OFF THE WIRE***
Mill City Acquires Nevada Properties
CALGARY, June 10 /CNW/ - MILL CITY INTERNATIONAL CORPORATION ("MILL
CITY") (TSX.V-MC) is pleased to announce that it has entered into arm's length
acquisition agreements dated June 9, 2003 for the acquisition of 100%
interests in six non-contiguous properties in north central Nevada totaling
approximately 600 claims (about 5000 hectares). Consideration for the
acquisition includes the payment of US$100,000 and the issuance of 750,000
common shares of the Company.
All acquisitions are subject to the terms of each underlying property
agreement, all of which contain a combination of work commitments and
escalating yearly property payments to the vendor. A Net Smelter Return
royalty of 4% is payable to the vendor for each property and Mill City retains
the right to purchase 1% of the 4% NSR on each property for US$1,000,000.
The properties acquired by Mill City fall within the major gold trends -
Carlin, Battle Mountain-Eureka, and most recently, a new trend along the North
Nevada Rift. Some of the better known gold deposits in the area include Gold
Quarry (20 million ounces), Pipeline (+15 million ounces), Fortitude deposits
(+10 million ounces), Midas (7 million ounces), Hollister (3 million ounces)
and Mule Canyon (1 million ounces). These areas of north central Nevada
produce most of the approximately 10 million ounces of gold mined in Nevada
each year, making it the most prolific gold region in the world outside of
South Africa. The Pipeline deposit produces more than one million ounces of
gold per year at a cash cost of about US$100/ounce. The Midas deposit averages
more than 1 opt gold and also produces gold for less than US$100/ounce.
The deposit types are generally Carlin style sediment hosted, low
sulfidation epithermal veins, and skarn related deposits. Mill City will be
focused on the structurally controlled high grade in each of the deposit
types.
North central Nevada has been explored for over 40 years. The majority of
mining in the area has focused on near-surface open pit production, both low
grade and high grade. Commencing in the early 1990's mining companies began
exploring this same area to locate high grade deposits along structures and in
favorable host rocks at depth. All exploration work to be carried out by Mill
City on these properties will be in search of these high grade deposits at
depth.
A more comprehensive description and geological profile of each property
will be released in the near future.
Mill City is currently outlining an exploration program and will provide
details once completed. Drill targets have been defined on some of the
properties.
Completion of the acquisitions under the letter agreements is subject to
regulatory approval.
Regards
Vaughn |
