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Mill City Acquires Additional Nevada Property and Appoints New Director
CALGARY, July 29 /CNW/ - Mill City International Corporation ("MILL
CITY") (TSX.V-MC) is pleased to announce the acquisition of a 100% interest in
the Pony Creek property in north central Nevada. The property is comprised of
224 claims (approx. 1900 hectares) and is located in the southwest corner of
Elko County, about 30 miles south of the town of Carlin and along the crest of
the Pinon Range.
Consideration for the acquisition includes the payment of US$30,000, the
issuance of 100,000 common shares of the Company and escalating yearly
property payments to the vendor. A Net Smelter Return royalty of 4% is payable
to the vendor and Mill City retains the right to purchase 1% of the 4% NSR on
the property for US$1,000,000.
The property is within the southern Carlin Trend and located about 20
miles south of the deposits at Rain. The property covers a portion of the
Pinon graben, a regionally extensive structural feature that trends
north-south for at least 20 miles and hosts several major gold deposits. The
deposits associated with the graben are reported to contain more than
5 million ounces of gold. From north to south these are the Saddle, Rain,
Emigrant Springs, Bullion, Dark Star, Trout Creek and Dixie Creek deposits.
The graben at Pony Creek is more than a mile wide and bounded by a series
of north-south trending structures. Northwest trending cross structures are
also prominent within and on the margins of the graben. Tertiary felsic to
mafic intrusives have been emplaced along the structural zones.
The most prominent feature at Pony Creek is the north-south trending
rhyolite porphyry which has intruded the sediments within the graben. The
exposed intrusive dike-sill complex is approximately 2 miles long and 0.75
miles wide.
Previous wide spaced drilling within and around the intrusive has
demonstrated gold mineralization over a very large area. Closely spaced
drilling by Newmont Gold in the mid 1980's defined a resource in one small
portion of the intrusive which will be confirmed by Mill City. High grade is
present as demonstrated by drill hole PC-20 drilling 25 feet (440 ft - 465 ft)
@ 0.45 opt gold.
To date, the widespread gold mineralization has been demonstrated in
Mississippian to Permian clastic rocks and the intrusives both within and
peripheral to the graben. Excellent potential exists at Pony Creek to develop
high grade along structures and especially at the Mississippian-Devonian
contact. This siltstone/limestone contact, host to all of the economic
deposits in the southern Carlin Trend (including the Rain open pit 1.017
million ounces, average grade 0.066 opt gold, and the Saddle deposit 1.475
million ounces, average grade 0.37 opt gold, Source: Nevada Bureau of Mines
and Geology Bulletin 111, Page 173), has never been tested at Pony Creek. Mill
City will focus its exploration toward structurally controlled high grade
primarily at this stratigraphic contact.
Mill City is also very pleased to announce the appointment of Mr. Carl
Pescio to its Board of Directors in addition to being appointed Vice President
of Exploration. Mr. Pescio, a graduate of the MacKay School of Mines,
University of Nevada, Reno brings to the Company 30 years of diverse mining
experience within the state of Nevada. He has held a variety of positions
including Geologist, Chief Geologist, Geological Engineer, Mine Manager and
Vice President of Exploration. He has been involved in the exploration and
development of several open pit and underground operations which produced base
and precious metals from a variety of deposit types. He has an extensive
background in all parts of project development including reserve calculations,
mine design, metallurgical testing, process design and operations. For the
past 12 years Mr. Pescio has been involved in generative exploration in the
Nevada gold trends and has been focused on acquiring properties and developing
exploration targets for deposits large enough to interest the major mining
companies in the area.
Mill City also announces the resignation of Mr. Charles Chebry as a
director of the Company and wishes to thank him for his services.
Completion of the property acquisition described above is subject to
regulatory approval.
Regards
Vaughn |
