Results to Date Indicate Further Exploration Not in Best Interest of
TSX VENTURE SYMBOL "MC"
CALGARY, May 25 /CNW/ - MILL CITY GOLD CORP. ("Mill City" and/or the
"Company") and Grandview Gold Inc. ("Grandview") as joint venture operator
pursuant to its agreement with Mill City today announced that they will not
continue exploration of the Pony Creek/Elliot Dome Property (the "Property")
in Nevada. Mill City and Grandview site compelling new modeling data regarding
both the shallow drill inferred resource and the deeper targets identified on
the Property combined with difficult capital market conditions as primary
reasons for their decision.
"Grandview has completed significant work across all major target areas
on the Property these past two years in particular, but the results simply do
not justify further expenditure of shareholder dollars. Given current market
conditions, the vast project is far too expensive to explore and even more
un-economic to maintain solely from an advanced royalties perspective," says
Grandview President & CEO Paul Sarjeant. Grandview completed 3-D modeling of
all geologic data last season which greatly evolved its understanding of the
Property and confirmed that further exploration and development of the
Property is simply not economic. Sarjeant explains that "the deep Rain-type
targets identified on the Property are simply too deep and expensive to
explore in this current economic environment and based on results to date,
there is no guarantee that a further exploration program on the Property would
create any incremental value for our shareholders."
What is in the best interest of the Mill City shareholders is a continued
focus on opportunity domestically. In Canada, focus remains on the Company's
projects located in the James Bay Lowlands region of northern Ontario.
ON BEHALF OF THE BOARD OF DIRECTORS
"James R. Brown"
James R. Brown
Chairman, President & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this Release.
For further information:
For further information: James R. Brown at (403) 640-0110 or visit the
Company's website at www.millcitygold.com