Indicates Parallel Structure Within 1.436 Million Ounce Inferred Resource
TSX VENTURE SYMBOL "MC"
CALGARY, Oct. 10 /CNW/ - MILL CITY GOLD CORP. (the "Company") is pleased
to announce assay results on 3,043 meters (9,985 ft) of drilling on the
Company's 28 square-mile Pony Creek/Elliot Dome Property (the "Property")
located on the 175 million ounce gold Carlin Trend in north central Nevada.
Assays for Hole PC-07-16 returned significant gold values, including
10.05 g/tonne gold over 1.5 meters (0.293 oz/ton gold over 5 feet),
2.18 g/tonne gold over 36.58 meters (0.064 oz/ton gold over 120 ft),
3.18 g/tonne gold over 6.1 meters (0.093 oz/ton gold over 20 ft) and
3.29 g/tonne gold over 12.2 meters (0.096 oz/ton gold over 40 ft). Hole
PC-07-16 in Pony Creek South is located within the NI 43-101 compliant
1.426 million ounce gold inferred resource area and was drilled as part of a
three target area program planned for the Property during the 2007 season,
which also included the Pony Creek West and Red Rock target areas.
A 1.426 million ounce inferred resource at Pony Creek South and North was
identified on the Property by the previous operators. The National Instrument
43-101 report (the "Report") dated March 18, 2004 titled "Evaluation of the
Gold Resource on the Pony Creek Property", was prepared by Rick H. Russell,
MSc, a licensed geologist and is available for review at www.sedar.com.
PC-07-16's off-set location and target depth were calculated by
incorporating geological data with assays from PC-06-06 drilled by the Company
in 2006, PC-05-02 drilled by the Company in 2005 and historic PC-20 drilled by
Newmont Mining Corp in 1981. PC-06-06 highlights included 2.72 g/tonne gold
over 9.1 meters and 5.36 g/tonne gold over 3.05 meters. Highlights for
PC-05-02 included 5.10 g/tonne gold over 16.8 meters and 12.5 g/tonne gold
over 3.05 meters. According to the Report, Newmont's PC-20 intersected 110 ft
of continuous gold mineralization averaging 0.167 oz/ton (5.73 g/tonne),
including two 25-ft intervals averaging 0.450 oz/ton (15.43 g/tonne) and
0.165 oz/ton (5.66 g/tonne). For details of PC-06-06 and PC-05-02, see Mill
City news releases dated December 20, 2006 and February 1, 2006 respectively.
For details of PC-20 see the Report on www.sedar.com.
Table 1. Significant Results from PC-07-16 and Related Historic Holes
DDH No. From m (ft) To m (ft) Width m (ft)(+) Au g/Tonne (opt)
PC-07-16 128.0 (420) 164.6 (540) 36.6 (120) 2.18 (0.064)
incl 128.0 (420) 134.1 (440) 6.1 (20) 3.18 (0.093)
incl 152.4 (500) 164.6 (540) 12.2 (40) 3.29 (0.096)
incl 153.9 (505) 155.5 (510) 1.5 (5) 10.05 (0.293)
PC-06-06(*) 100.6 (330) 109.7 (360) 9.1 (30) 2.72 (0.079)
incl(*) 100.6 (330) 112.5 (340) 3.05 (10) 5.36 (0.156)
PC-05-02(*) 120.4 (395) 137.2 (450) 16.8 (55) 5.10 (0.149)
incl(*) 126.5 (415) 129.5 (425) 3.05 (10) 12.50 (0.365)
PC-20(*) 123.4 (405) 157.0 (515) 33.5 (110) 5.73 (0.167)
incl(*) 125.0 (410) 132.6 (435) 7.6 (25) 5.66 (0.165)
incl(*) 134.1 (440) 141.7 (465) 7.6 (25) 15.43 (0.450)
(*) Previously reported.
(+) All thicknesses and depths are drill hole thicknesses and depths and
are not/should not be assumed to be true thicknesses.
PC-07-16 was collared and drilled through the Pony Creek rhyolite until
approximately 420 ft. From 420 to 540 ft a quartz grain sandstone was
intercepted which corresponds directly with gold mineralization. From 540 to
645 ft a calcareous sandstone/sandy limestone unit was encountered, and from
645 through 845 ft a light grey limestone with grey chert fragments
characteristic of the Pennsylvanian Moleen limestone was intersected.
The mineralized zone in PC-07-16 is located 120 to 170 ft west of the
PC-06-06 and PC-05-02 mineralization, but appears to be controlled by a
parallel structure. A follow-up series of 100 ft offset holes will test the
mineralized horizon in the area around what appears to be two parallel
"We are very pleased by recent developments at and near PC-07-16. Not
only are the gold numbers and stratigraphy indicative of a Carlin Type system
like Barrick's Bald Mountain Mine, but it is very possible that a second
structure, indicated by Newmont's drilling in the 80s' is in the same
neighborhood," says Paul Sarjeant, President of Grandview Gold Inc.
("Grandview"), operator of the Property. "All of that bodes well for the
resource area and the way our geologists have been interpreting the geology."
"We left Pony Creek with the drill turning on PC-07-19, one of the
off-set holes targeted to test structural control of PC-07-16 mineralization,"
says Dr. Michael Hitch, Chairman of Grandview. "Once we receive assays on that
off-set and the balance of the Pony Creek 2007 drill and exploration program,
we will review the geology, geochemistry and geophysics as a team and develop
a forward exploration program including 3D modeling. With a computer generated
geological model, we should be able to visualize the deposit in all directions
and move to expand the existing inferred resource as well as maximizing the
Last month, the Company reported preliminary results of drilling at Pony
Creek West and Red Rock (see Mill City news release dated September 26, 2007)
and has the following to add: A total of 5,320 feet of drilling was completed
on Pony Creek West which sits adjacent to the 1.426 million ounce inferred
resource area. Project geologists identified favourable looking lithological
units, alteration and structural zones at favourable depths. All drill holes
that intercepted the targeted structure contained anomalous gold. The
stratigraphy appears to be in the Mississippian Chainman formation. Two
identified faults are thought to define a W-NW trending 'horst' block with the
Devonian Devil's Gate within possible drilling depth. The Chainman/Devil's
Gate contact (or equivalents) hosts mineralization at the five million ounce
gold Rain/Emigrant Springs mines north of Pony Creek as well as the Bald
Mountain mine to the south.
The Company completed 2,000 ft of exploratory drilling at Red Rock into
stratigraphy which appears to be within the targeted Mississippian Chainman
formation. Secondary carbonate alteration described in mining literature about
the Rain Mine was observed, intensifying near the bottom of the hole. In
keeping with the Company's original plan to conduct multi-element analysis to
further MagmaChem's target vectoring (see Grandview news release dated May 10,
2007) to determine likelihood of Rain type mineralization at depth, samples
have been sent to ACT labs for analysis.
The drilling program was carried out under the supervision of Paul
Sarjeant, B.Sc, P.Geo, President and CEO of Grandview, who is a "qualified
person" as defined by NI 43-101. The information in this release was reviewed
by and prepared under the direction of Paul Sarjeant. All samples are prepared
and analyzed by ALS Chemex, with sample preparation in Elko and analysis in
Vancouver. Future results will be reported once they are received and reviewed
by project staff.
About the Carlin Trend
The Carlin Trend is the second richest gold district in the world, second
only to Witwatersrand South Africa. Carlin Trend mines have produced more than
75 million ounces of gold to date, worth over USD $54 billion at today's
prices. More than 100 million ounces gold of proven and probable reserves
worth over USD $72 billion remain in the ground.
About Pony Creek/Elliot Dome
Under the terms of an option agreement with Grandview Gold Inc., the
Company has retained a 20% carried interest in the Property, carried through
the completion of a bankable feasibility study. The Pony Creek/Elliot Dome
Property represents the largest consolidated land position on the Carlin Trend
not already owned by a major resource company.
Mill City is a gold exploration company focused on creating value for
shareholders by exploring and developing high-grade gold properties in Nevada.
Details of Mill City's projects are available on the Company's website at
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this Release.
For further information:
For further information: MILL CITY GOLD CORP., James R. Brown, Chairman
& President, Tel: (403) 640-0110, E-mail: firstname.lastname@example.org