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From: newsout@canada-stockwatch.com
Date: Wed, 07 Jan 1998 10:51:25 -0800
Subject: Stockwatch: Mill City Gold Mining Corp - News Release
To: WD_Valgardson@bc.sympatico.ca
Large new targets discovered
Mill City Gold Mining Corp MIY
Shares issued 44,393,652 Jan 6 close $0.15
Wed 7 Jan 98 News Release
See MacDonald Mines Exploration Ltd (MMP.A) News Release
Mr Mario Miranda of MacDonald Mines reports
The largest concentration of known gold prospects in Cuba occurs within the
boundaries of the MacDonald concession. To date, MacDonald has identified
gold resources in two deposits; the shear zone hosted Florencia deposit and
the high-sulphidation Golden Hill deposit. MacDonald has also identified a
gold resource potential in the skarn setting on the Maclama prospect which
historically produced gold from open cuts and shafts in the early 1900's.
The reconnaissance survey concentrated on anomalies identified by a 1995
Geoterrex airborne geophysical survey and by reviewing earlier work on the
concession. Ten new areas have been identified which will now receive
further examination to identify drill targets.
The La Pala anomaly is by far the most exciting anomaly and is 6km
southeast of the Golden Hill deposit. It is the Golden Hill deposit that
previously produced drill hole GH-15, drilled vertically and which
encountered 11.52 grams per tonne of gold over 34.83 metres (0.336 oz/t Au
over 114.3 ft) including 34.63 grams per tonne of gold over 10.85 metres
(1.01 oz/t Au over 35.6 ft). The La Pala anomaly is a mirror image of the
Golden Hill airborne EM/magnetic anomaly with a large magnetic low that
covers a 5 sq km area with clustered airborne EM anomalies throughout. A
gossan sample returned 45.1 g/t Au, >100 g/t Ag (1.45 oz/t Au, >3.21 oz/t
Ag) with anomalous As, Sb, Mo. Several reconnaissance lines over one of the
airborne EM anomalies returned a strong Max/Min response indicating massive
sulphides at depth. Some of the airborne EM anomalies are strataform over a
strike length of 1500 metres. When considered in the context of the
previously discovered Golden Hill deposit, where parts of a gold and copper
rich massive and semi-massive sulphide body come to surface to form gold
rich oxide zones, the La Pala anomaly may be eroded deeper and thus will
result in a large gold-rich oxide zone or zones. Such near surface gold
rich bodies that are related to high sulphidation gold and copper rich
bodies (for example, the Pueblo Viejo deposit in the same Cretaceous
volcanic arc in the Dominican Republic, and the Arequipa Pierina deposit
being developed by American Barrick in Peru) can be mined at a very low
cost per oz. This is critical in today's market of low gold prices.
Another target, known as the Blanquizal anomaly, is on the Blanquizal
fault, a major E-W structural feature that passes through the Florencia
gold deposit area 3km to the east. A soil geochemistry line over a 3km long
magnetic low, that partly defines the fault, has a 125 metre wide gold in
soil anomaly with up to 455 ppb (0.45 g/t) gold in soil.
A third highly prospective area, known as the Villa Maria anomaly, is 6km
due west of the city of Las Tunas at the eastern end of the concession.
Here a poorly exposed silicified body lies near an E-W trending cluster of
airborne EM anomalies. All rock samples collected from the silicified body
returned gold values with the best at 170.1 g/t Au and >100 g/t Ag (5.47
oz/t Au and >3.21 oz/t Ag) with associated high concentrations of As, Bi,
Hg, Cu, Pb and Zn.
MacDonald believes that there is a high probability that new ore bodies
will be discovered following work programs on the 10 high priority targets.
On December 22 1997 MacDonald announced the filing of its takeover bid
offering circular to acquire all the outstanding shares of joint venture
partner Golden Hill Mining Corp. Mill City Gold Mining, the holder of 44.5%
of Golden Hill, has agreed to tender all its shares to the bid. The
transaction is expected to close on January 22 1998.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
These results, a yar ago, would hve shot the price skyward. With the POG the way it is, they might as well have announced they found 17 g.of shit per ton. They're also suffering from a lack of credibility.
Lot of shareholders out there waiting fora chance to sell and get some of their money back. They're going to have to come up with some
great results to actually move the stock. Not good enough to get good grab samples. I was working in Cuba recently and had intended to look them up and see what they've actually done. Turned out I was too busy. Anybody know anything more about their situation? |
