Three separate projects targeted at Pony Creek/Elliot Dome
TSX VENTURE SYMBOL "MC"
CALGARY, Aug. 15 /CNW/ - MILL CITY GOLD CORP. ("Mill City" or the
"Company") has been advised that drilling commenced this week on the 28-square
mile Pony Creek/Elliot Dome Property on the Carlin Trend in north central
Nevada, USA as part of the 2007 exploration program currently underway over
three target areas.
Approximately 20,000 feet of drilling is expected to be completed over
the three areas, beginning with Pony Creek West, the newly defined Red Rock
target and the Pony Creek South inferred resource area. Management believes
that RC drilling is the most cost-effective way to test target models at
shallower depths prior to commencing more costly diamond drilling.
Significant progress was made last year with the mapping and drilling
programs and the Company is confident that the 2007 drilling program will
further narrow the target fields. Operator and joint venture partner Grandview
Gold Inc. ("Grandview") has adopted what it believes to be an advantageous
exploration model built on the strategic application of advanced geology,
geochemistry and geophysics to reduce exploration cost and risk and narrow the
target field substantially before undertaking diamond drilling. The Pony Creek
North and South target areas represent areas of known mineralization and
account for the 1.426 million ounce gold inferred resource identified on the
property by previous operators. 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. Geologists continue to map and surface
sample both areas and have integrated additional CSAMT (controlled source
audio-magnetotellurics) to further isolate prospective targets at the Devil's
Gate contact with the Mississippian Chainman formation, and to intercept
high-grade gold mineralization within the Pony Creek rhyolite.
During the 2006 season, results from Hole PC-06-03 were in line with the
Company's plan to significantly upgrade the inferred resource. "The inferred
resource is a tremendous asset and it is in the best interest of our
shareholders to aggressively pursue additional mineralization within the
resource area, test the base of the intrusive and pursue a deeper Rain Model
type deposit here as well. With Carlin Trend neighbors like Goldstrike,
Meikle, Rain and Bald Mountain, we are certainly in the right part of the
world to make a major discovery," said Jim Brown, President & CEO of Mill
The Pony Creek West target concentrates on an area of previous drilling
by Homestake Mining (2000), specifically hole HPCR-001 which appears to have
intersected favorable stratigraphy with increasing silicification and
jasperoid units below 600 feet. Historical drill information indicates
detectable gold values between 605 and 900 feet downhole. "The target area
sits just west of the 1.426 million ounce shallow resource area and within the
area previously identified as the prospective rock units, so we will drill
accordingly and follow the mineralization," said Paul Sarjeant, President and
CEO of Grandview.
The Red Rock target has been identified as a typical Rain-type high-grade
gold occurrence at a target depth of approximately 1200-1800 feet. The Red
Rock target area is situated at the southern tip of the Pony Creek/Elliot Dome
Property, about 30 miles northwest of Barrick Gold Corporation's 5 million
ounce (gold) Bald Mountain mines. Based on geophysical and geochemistry done
during the 2006 season and 3-D conceptual maps developed earlier this season,
the Company believes that the Devil's Gate contact target area at Red Rock is
within reach and anticipates that drilling several holes will further refine
the model and the primary target area. For more information on the Red Rock
target see Grandview's news release dated May 10, 2007 titled Report Confirms
Favorable Stratigraphy at Rain-Type Red Rock Target.
The Pony Creek South area hosts the primary mineralized area on the
property, including the PC-20 high grade intercept. Compilation work has
identified certain structures that may represent significant control on
mineralization that have not been drilled effectively. Drilling scheduled for
this area is designed to trace mineralization down structure to the base of
the intrusive contacts where the highest grade mineralization has historically
In addition to the three target areas identified for exploration this
2007 field season, the Company intends to explore for and possible identify
new target areas over the 28 square mile Property. Mill City management
believes in the inherent value of the Carlin Trend and Nevada remains a key
strategic location for ongoing exploration and project development. The Carlin
Trend has produced more +1 million, +10 million and +20 million ounce gold
deposits than all of Russia and all of China combined. The Carlin Trend hosts
more than 100 million ounces of gold and has produced approximately 75 million
ounces worth approximately USD$50 billion at today's prices. The Property sits
between two developed regions of the Carlin Trend - the 4.5 million ounce Rain
District and the 5 million ounce Bald Mountain District.
Results of additional geophysical surveying over Pony Creek West and Red
Rock target areas completed in July are expected within the next few weeks.
Mill City has a 20% carried interest in the Pony Creek/Elliot Dome
project, carried through the completion of a bankable feasibility study.
On August 10, 2007, the Company filed a Notice of Discontinuance in the
lawsuit previously filed against Minterra Resource Corp.
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: email@example.com