Mill City International Inc
MIY
Shares issued 44393652
1998-04-08 close $0.25
Friday Apr 10 1998
See Canarc Resource Corp (CCM) News Release
Mr Robert Carriere reports
Canarc has acquired by staking a 100% interest in the Lobo 3 property, totalling
19,600 hectares, in San Luis Potosi State, Mexico. The property is adjacent to
the claims of Western Copper/Teck Corp, 20km northeast of their new
discovery, within the Fresnillo silver district in Zacatecas State.
Zacatecas is not only the location of a major new mineral find, the Fresnillo area
has produced more than 750 million oz silver historically, one of the largest silver
mining camps in the world. Deposits here typically contain several million tons
grading 100 to 1000 gpt Ag, 1% to 5% Pb, 2% to 10% Zn, with copper and gold
credits.
The silver deposits are almost always associated with younger, buried Tertiary
intrusions, whereas the massive sulphide deposits appear to be related to an older
Cretaceous volcanic belt. Just as the Western Copper/Teck deposit was
discovered by drilling a blind geophysical anomaly underneath valley-fill pediment,
so Canarc believes the potential to find additional deposits on the Lobo 3
property by geophysical and drilling methods is excellent.
The Lobo 3 property was staked to cover a high priority target area based on a
data compilation of two known mineral occurrences, favourable Cretaceous rock
formations, five aeromagnetic highs and three geochemical silver anomalies. The
prospects for Lobo 3 fall into two general deposit types: Western Copper-type
Cu-Zn-Pb-Ag-Au, volcanogenic massive sulphide deposits and Fresnillo-type
Ag-Pb-Zn-Cu sediment-hosted mantos, skarns and veins.
Mill City has been granted an option to earn a 50% interest in Lobo 3 by paying
US$200,000, issuing 200,000 shares and spending US$2,000,000 over a two
year period. An additional 100,000 shares will be issued upon completion of a
bankable feasibility study on the project. Canarc, as operator, has proposed an
exploration program consisting of aeromagnetic surveying ground geophysics and
diamond drilling over the next several months.
Canarc has an agreement to sell the other 50% interest in Lobo 3 to a subsidiary
company focused on acquiring and developing silver projects in the Americas.
Canarc has also staked other properties in the Zacatecas area and is now seeking
partners for joint venture |
