AIRBORNE GEOPHYSICAL SURVEY UNDERWAY NEAR NORONT DISCOVERY
TSX VENTURE SYMBOL "MC"
CALGARY, Feb. 14 /CNW/ - MILL CITY GOLD CORP. ("Mill City" and/or the
"Company") announces it has completed all documentation in relation to its
Option and Joint Venture Agreement ("the Agreement") with Temex Resources
Corp. ("Temex"). The Agreement, announced on December 12, 2007 covers nine
properties encompassing more than 40,000 acres ("the Claims") in the vicinity
of the Noront Resources Ltd. new Eagle One nickel-copper-platinum-palladium
discovery in northern Ontario. An extensive airborne survey of the Claims has
commenced and preliminary results are expected in March 2008.
The Claims consist of 1,012 mining units covering some 40,480 acres in
nine separate claim groups, on which there is no recorded history of
exploration. Temex and Mill City believe the Claims have potential to host
several deposit types including:
- nickel-copper-platinum-palladium mineralization (Noront type high
- copper-zinc in volcanogenic massive sulphide setting (Spider type)
- diamonds (the original exploration target in the area; De Beers;
- gold (Superior Diamonds-Lakeshore Gold type)
Temex and Mill City report the commencement of high quality airborne
magnetic and electromagnetic surveys over the entire Claims. The
state-of-the-art helicopter-borne systems will provide substantial amounts of
precisely located geophysical data quickly. This data will provide the basis
for quick definition of initial priority targets. The best targets will be
quickly ground detailed and are expected to be 'drill ready' for late winter
Mill City and Temex have received TSX Venture Exchange ("Exchange")
approval for the transaction and in respect of the approval and as required by
the Exchange, Mill City commissioned a NI 43-101 compliant Technical Report
prepared in respect of the Claims and the transaction. The report has been
prepared and submitted to the Exchange for approval; and the approval was
recently granted by the Exchange. The Technical Report, authored by Brad
Leonard, P.Geo. of Caracle Creek International Consulting Inc., will be filed
on www.sedar.com by Mill City as required.
Essential Terms of the Agreement
Mill City has the option to earn a 50% interest in the properties by
completing the following: incur the first $2,500,000 in expenditures as
partial requirement to earn the 50% interest; pay Temex $300,000 cash and
issue 250,000 of its common shares to Temex; issue an additional 250,000
shares on or before the first anniversary of the agreement. If Mill City earns
a 50% interest in the Claims a joint venture will be formed with Temex to be
the initial operator of the joint venture. Additional information on the
Agreement is included in Mill City news release dated December 12, 2007.
Rick H. Russell, P. Geo., is the designated qualified person responsible
for the preparation of this news release.
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