- Company purchases six (6) mineral patents that cover the Konigson gold zone situated north and parallel to the Lake Beach Gold Mine horizon.
- The newly-acquired property host a gold bearing shear zone that measures 125 metres long and averages 3 metres wide with surface grab samples up to 2.65 ounces gold per ton (90.46 g/t).
Vancouver, B.C., August 09, 2011: Mineral Mountain Resources Ltd. (MMV.TSX-V) (“Mineral Mountain” or the “Company”) is pleased to announce that the Company has purchased 6 patented mining claims (K2549, K2550, K4387, K4388, K4389 and K4390) totaling approximately 64 hectares (158 acres) from Ms. Anne Eustace (the “Owner”), a private owner residing in Fort Frances, Ontario. The newly-acquired property adjoins the original Straw Lake Beach Gold Mine patents optioned by Mineral Mountain from Shotgun Exploration (see news release dated September 28, 2010) and has been held by Ms. Eustace for over 40 years.
The Straw Lake gold project is readily accessible by an all-weather road and is located approximately 70 km northeast of the Rainy River Deposit in Richardson Township and about 60 km due north of Fort Frances, Ontario in the Kenora mining district of Ontario.
Straw Lake Area Gold Mineralization
Gold mineralization in the Straw Lake Property, which now consists of a contiguous land package totaling 4448 hectares (10,986 acres), appears in two different lithologies:
1) Straw Lake Mine Trend: (11 km long)
- Gold mineralization along the mine trend is associated with pyritic quartz veins as well as with mineralized pyroclastic rocks, felsic volcanic and iron formation carrying economic grades up to 12 g/t Au. The Straw Lake Beach Mine produced 33,662 tons grading 0.34 oz/t Au between 1938 and 1941.
- Konigson Occurrence: Discovered in 1933 by prospector, Ed Konigson, on the north shore of Straw Lake, a 40-foot deep shaft was sunk on a highly sheared inter-bedded acid and basic lava flows intruded by quartz porphyry. Surface grab samples collected from the dump material ran from 0.46 ounces per ton to 2.65 ounces per ton gold. The gold is associated with pyrite-rich quartz porphyry.
2) Lawrence Lake Batholith Gold Occurrences:
- Important gold concentrations with bulk tonnage potential occur within granodiorite related with lineament and fault structures that cut the intrusive rocks with associated quartz veining and pyrite. One such gold-bearing fault structure within the granodiorite is up to 2 km long.
Nelson W. Baker, Mineral Mountain’s President and CEO commented: “The addition of these much sought after mineral patents contiguous and north of our company’s Straw Lake Beach Gold Mine shaft represents an important property acquisition for us. The last serious exploration that was performed on the Konigson gold occurrence was prior to 1940”.
The aggregate purchase price for the 6 mineral patents (the “Claims”) to be paid by Mineral Mountain for a 100% interest in the claims patents, subject to a 3% NSR, is a total of 350,000 common shares of the Company and Cdn. $600,000 in cash payable to the Owner as follows:
- Upon signing of this Letter of Intent and approval of the transactions contemplated by this Letter of Intent by the TSX Venture Exchange (“TSXV”), Mineral Mountain will, within five business days following TSXV approval, issue a total of 200,000 common shares of Mineral Mountain and make a cash payment of $300,000 to the Owner ; and
- On or before the 6th of January, 2012, Mineral Mountain will issue an additional 150,000 common shares of Mineral Mountain and make a further cash payment of $300,000 to the Owner.
No conveyance of Title shall occur until the total aggregate purchase price as described above has been paid to the Owner. The Owner has retained a 3% net smelter royalty, of which two percent (2%) may be repurchased by Mineral Mountain for the total sum Cdn. $1,000,000 million for each 1% of the net smelter royalty.
The Straw Lake Project is supervised by Wally Rayner, P. Geo., the Company’s Vice President of Exploration who has verified the contents of this press release and is the Qualified Person for this project.
About Mineral Mountain
Mineral Mountain is a well-funded explorer of precious metals with approximately $7 million in its treasury. The Company has three major gold projects that meet Mineral Mountain’s long term objectives of becoming a strong mid-tier resource producer.
On Behalf of the Board of Directors of
MINERAL MOUNTAIN RESOURCES LTD.
“Nelson W. Baker”, President and CEO
For further information, please contact
Brad Baker, Vice-President Corporate Development & Director
Telephone: (604) 714-0111
Kin Communications (604) 684-6730
“Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”
This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that cause the actual results to differ materially from those in forward-looking statements include gold prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, continued availability of capital and financing and general economic, market or business conditions. The Company cautions the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Company’s forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Please see the public filings of the Company at www.sedar.com for further information.