TSX VENTURE SYMBOL "MC"
CALGARY, June 21 /CNW/ - MILL CITY GOLD CORP. ("Mill City" or the
"Company") is pleased to announce the Company's decision to convert its 40%
working interest in the Pony Creek/Elliot Dome Property to a 20% carried
interest, carried through the completion of a bankable feasibility. The
Company has confirmed that Grandview Gold Inc. ("Grandview") has incurred the
required US$3.5 million of exploration and development expenditures to earn
its 60% interest. Under the terms of the Company's agreement with Grandview,
Mill City had the option of either participating as to a 40% working interest
or converting to a 20% carried interest. "Our decision to be carried through
the completion of a bankable feasibility study was made to preserve
shareholder value," said Jim Brown, Mill City's President & CEO.
Mill City has been advised that the 2007 exploration program at Pony
Creek should be underway in early July and will consist of compilation and
interpretation of data, geologic mapping, geophysics, and approximately
6,100 metres (20,000 feet) of reverse circulation drilling. The goal of the
program will be to develop and test targets with the highest probability of
finding gold mineralization. Target types include a specific stratigraphic
horizon of the upper contact of Devonian Devils Gate formation and the
overlying Mississippian Webb formation, as well as structural targets. The
drill targets will be broken down by target areas: Pony Creek North, Pony
Creek South, Pony Creek West and Red Rocks.
A National Instrument 43-101 report dated March 18, 2004 titled
"Evaluation of the Gold Resource on the Pony Creek Property", prepared by Rick
H. Russell, MSc, a licensed geologist, is available for review on
www.sedar.com. The Russell report concludes that there is an "Inferred
Resource of 1,426,000 ounces at a grade of 0.044 oz/ton" and that the "Newmont
drill hole PC-20 intersected 110 feet of continuous gold mineralization
averaging 0.167 oz/ton Au, including a 25-foot interval averaging 0.450 oz/ton
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
Mr. Russell, a Qualified Person, has reviewed the technical disclosure
contained herein and accepts responsibility for such disclosure.
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, President
& CEO, Tel: (403) 640-0110, E-mail: firstname.lastname@example.org