- 5,000 metre, Phase I drill program set to begin June 20th 2011,
- 700 level gold vein averages 0.43 oz/t gold / 16.9 inches over 447 feet (historical assays),
- Drilling designed to intersect previously untested high grade gold mineralization immediately below 700 level,
- Grab samples from wallrock in waste dump assay up to 12.8 g/t gold
Vancouver, British Columbia: Mineral Mountain Resources Ltd. (MMV.TSX-V) (“Company”) is pleased to report that the Company has approved a $1.5 million program consisting of an airborne magnetic survey, geochemical sampling, detailed surface geological mapping and 5,000 meters of diamond drilling. Phase 1 drilling will target the existing high grade gold mineralization immediately below the historic Straw Lake Beach Mine workings commencing June 20th, 2011. Additional, high priority regional targets will also be tested during this drill program.
Straw Lake Beach Mine History (1933-1941)
In July 1933, prospectors Murdoch Mosher and Fred Grozelle discovered a quartz vein in a shear zone on the south side of Straw Lake. The mineralized zone (Mosher Vein) was traced on surface for approximately 1000 feet. At surface, the gold bearing quartz vein is hosted in a shear zone with true widths of the vein ranging from 2 to 25 inches, at times branching into several smaller en echelon vein sets. A shaft was sunk to 120 feet on the vein and by May 1935, 576 feet of drifting and 56 feet of cross-cutting had been completed on the 100 foot level. Between 1938 and 1941 the Straw Lake Beach Mine produced 11,568 ounces of gold and 1,049 ounces of silver from 33,662 tons of ore. The average grade of the development ore processed was 0.34 ounces/ton gold. At this time, the mine consisted of a shaft that was extended to 723 feet with 6 levels and 4,631 feet of lateral development. Mining was only completed to the 425 foot level and was subsequently suspended because of a lack of power for ventilation and milling operations. The Canada War Board sealed the fate of the mine and September 4th, 1941 was the last known day anybody worked at Straw Lake.
According to the Mineral Policy Sector, Department of Energy, Mines and Resources information cards on summary of mineral deposits; J.D. Tolman (mine manager) reported in his annual report that “The 700 foot level showed as good, or better, and more continuous ore than any other level of the mine.”
The 525 and 700 foot drifts were developed but never mined. The blue print of the assay plan (Oct 16, 1940) for the 700 foot level (available on Company Website http://www.mineralmtn.com/s/Home.asp) confirms that systematic vein sampling was conducted in the drift. The grade and width calculation on this plan indicate an average true vein width of 16.9 inches with a strike length of 447 feet averaging 0.43 oz/t gold. Some of the highest grades and thicknesses of gold were recorded on this level where the last three samples at the east end of this drift assayed 1.72 oz/t, 2.11 oz/t and 2.83 oz/t. No other samples were apparently taken to the east and the high grade mineralization remains open and untested along strike and to depth.
Sampling by Mineral Mountain Resources
Sampling of the waste dumps at the Straw Lake Beach Mine was conducted by Mineral Mountain geologists. Assays up to 12.8 /t gold were received from grab samples of the apparently barren wallrock which is host to the higher grade gold veins. These assays are very significant in that they are indicative that quartz veining is not necessary to host high grade gold mineralization within the mine stratigraphy.
Nelson W. Baker, President and CEO of Mineral Mountain Resources Ltd. is quoted as stating,
“AS A COMPANY, WE ARE VERY ENTHUSIASTIC ABOUT THE COMMENCEMENT OF THIS INITIAL PHASE OF DRILLING. IN THE PROPERTY’S LONG HISTORY, THIS WILL BE THE FIRST TIME THAT MINE STRATIGRAPHY HAS BEEN FULLY ASSESSED FOR its GOLD potential; INCLUDING THE mine WALLROCK WHICH WE KNOW CARRIES SIGNIFICANT GOLD VALUES. THE MINERALIZED TRENDS BELOW AND ALONG STRIKE OF THE MINE HAVE NEVER BEEN TESTED. IT IS EXCITING AND AT THE SAME TIME DIFFICULT TO BELIEVE THAT MINERAL MOUNTAIN WILL BE THE FIRST GROUP TO SYSTEMATICALLY ASSESS not only the region, but the MINE’S GOLD POTENTIAL SINCE IT CLOSED IN 1941.”
The Straw Lake project is managed by Kevin Leonard, (P. Geo). Wally Rayner (P. Geo)., the Company’s Vice President of Exploration, has verified the contents of this press release and is the Qualified Person for the project.
About Mineral Mountain Resources Ltd.
Mineral Mountain is a well-funded explorer and developer of precious metals with approximately $6.0 million in its treasury. The Company has four major gold projects that meet Mineral Mountain’s long term objectives of becoming a strong mid-tier resource group. In south eastern British Columbia, the Company’s 100%-owned 88,000-hectare, 70 km by 15 km Kootenay Arc Project is believed to have a geological environment for sediment-hosted precious metal deposits similar to those found in the Carlin Trend of Nevada and in the Selwyn Basin of Yukon. In the emerging Shining Tree gold mining camp 100 km south of Timmins, Ontario, the Company, through its joint venture with Golden Harp Resources Inc. has become a key explorer in the district. The 145 km² Golden Harp Main Block (60%) and Block A (70%) options host large gold systems that offer above average potential to host both bulk tonnage and high grade gold mineralization. The recently acquired 11 km by 4 km Straw Lake Property and the Whetstone Mineral claims 70 km northeast of the Rainy River deposit offers great potential to host both a Hemlo-style gold and a Hammond Reef-style bulk tonnage gold deposit models.
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
The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy and accuracy of this news 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.