CALGARY, Jan. 18 /CNW/ - MILL CITY GOLD CORP. ("Mill City" and/or the "Company") (TSX-V: MC) is pleased to announce
that drilling has commenced on the Croxall Property ("Croxall" or "the
Property"), a key property located in the West Timmins gold district.
The 2,400 acre Property is located adjacent to and along strike of the
Golden River Trend being aggressively explored by Lake Shore Gold Corp.
("Lake Shore") where Lake Shore recently announced very encouraging
gold results. To view a map of the Croxall Property please visit www.millcitygold.com.
Drilling is under way on a 6-hole 2,500 metre drill program.
Initial drilling will test for extensions of gold zones on the Golden
River Trend recently announced by Lake Shore along strike to the
Results announced January 11, 2011 by Lake Shore indicate the presence
of a number of gold zones from near surface to 750 metres deep,
approximately 3000 metres to the west-northwest of the current drill
location on the Croxall Property.
Historic drilling in the 1990's 700 metres to the northwest of the
current drill area on Croxall included one hole that assayed 7.68 g/t
gold over 9.6 metres.
No previous drilling has been completed on this portion of the Croxall
The recent Lake Shore assay results, excellent logistics, large land
position and excellent discovery potential on the Property put Croxall
on a short list of first class exploration properties located in the
newest part of the developing West Timmins gold district.
Previous work on the Property consists of more than 40 drill holes by
several different operators over more than 25 years which provides an
excellent database for certain parts of the Property while other areas
remain almost completely unexplored.
The Property is nearly completely overburden covered thereby precluding
prospecting success and necessitating significant long term exploration
programs and significant expenditures to build a solid geological
database. Most of this type of work has been completed over the years
and is available for further defining the prospective locations for
Work completed to date has defined the location of similar host rocks to
those that host the significant gold mineralization on the adjacent
Lake Shore property. Work on the Lake Shore property has resulted in
the discovery of significant gold mineralization and Lake Shore
recently announced it had commenced commercial production from the
first gold mine in the western portion of the prolific Timmins Gold
camp which now boasts production and resources of more than 70 million
ounces of gold.
Mill City has the option to earn a 75% interest in Croxall from Temex
Resources Corp. by spending $750,000 on Croxall over four years with a
firm commitment of $250,000 during the first year.
Bruce Durham, P.Geo., a qualified person under NI-43-101 reviewed this
release and is the person responsible for the technical information
contained in this release. All technical data in this release is of a
historical nature and has not been verified by a Qualified Person.
Forward Looking Statements:
This news release includes certain "forward-looking statements". Such
forward-looking statements involve risks and uncertainties. The
results or events predicted in these forward-looking statements may
differ materially from actual results or events. The Company disclaims
any intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Mill City Gold Corp.
For further information:
Mill City Gold Corp.
James R. Brown
President & CEO