Drill Rig mobilized to 1.426 million oz gold inferred resource area
TSX VENTURE SYMBOL "MC"
CALGARY, Sept. 26 /CNW/ - MILL CITY GOLD CORP. (the "Company") is pleased
to announce the completion of 1,497 metres (4,910 feet) of drilling over six
holes at the Pony Creek West target on the Company's 28 square-mile Pony
Creek/Elliot Dome Property ("the Property") located on the Carlin Trend in
north central Nevada. The initial 1,497 metres of drilling represents the
first of three stages of drilling over three target areas planned for the
Property this 2007 season.
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 favourable stratigraphy with increasing silicification and
jasperoid units below 600 feet. Historical drill information indicates
detectable gold values between 605 and 900 feet (184 - 274 metres) downhole.
The Pony Creek West target sits just west of the NI 43-101 compliant
1.426 million ounce gold inferred resource area (Pony Creek South and North)
and within the area previously identified as the prospective rock units. The
1.426 million ounce inferred resource was identified on the property by
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", has been prepared for the Property by Rick H. Russell MSc., a
licensed geologist and is available for review on www.sedar.com.
Pony Creek West's 2007 six hole drill program was undertaken in
conjunction with surface sampling and integrated CSAMT geophysics to test the
depth of a magnetic anomaly, test known silicified structural zones and locate
the prospective Webb/Devil's Gate contact. The Webb/Devil's Gate contact (or
equivalents) hosts mineralization at the five million ounce gold Rain/Emigrant
Springs Mines and other deposits located 5 to 19 miles north of the Pony Creek
Property and is the main target for gold mineralization at the south end of
the Carlin Trend, including the 4.5 million ounce gold Bald Mountain Mine
south of Pony Creek. Previous drilling appears to have intersected the
Webb/Devil's Gate contact over several holes in proximity to an area of known
mineralization. The 2007 program concentrates on locating favourable
structures at depth within the mineralized area and testing other
The Company is pleased with the progress made thus far in the current
drilling program. Typical Carlin type gold is sub-microscopic in nature and
cannot be observed on visual inspection. The project geologist however, has
identified favourable looking lithological units, alteration and structural
zones at favourable depths. Assays are pending on Pony Creek West. The
truck-mounted drill has been mobilized to the Pony Creek South target area,
and a second and larger drill has been mobilized to the Red Rock target area.
Under the Report, the Pony Creek North and South targets are part of the
1.426 million ounces gold identified on the property by previous operators at
a depth of 500-700 feet over an area slightly greater than one square mile.
Results for Hole PC-06-03 drilled during the 2006 season were in line with the
Company's plan to upgrade the 1.426 million ounce inferred resource over time
(36% increase in grade from the PC-95-08 - see Company news release dated
November 20, 2006), but the 2007 drill program was planned primarily to test
the base of the intrusive and pursue a deeper high-grade gold deposit.
"The 1.426 million ounce inferred resource represents a tremendous
potential opportunity for the Company and we believe it to be in the best
interest of our shareholders to follow mineralization within the resource
area, test the base of the unit 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 and CEO of Mill City.
The Red Rock target has been identified as a typical Rain-type high-grade
gold occurrence at a target depth below 1800 feet. The target area is situated
at the southern tip of the Property, about 30 miles northwest of Barrick
Corporation's Bald Mountain Mine.
Based on geophysics and geochemistry done during the 2006 season and 3-D
conceptual maps developed since, the Company believes that the Devil's Gate
contact area is within reach and hopes that drilling done this season will
further refine the model and the target area. The Company believes that RC
drilling the initial 1800 feet is the most cost-effective way to test this new
target model. "If favourable host rock is intercepted at a horizon of
2000 feet or so, we know we are in the right prospective unit and can then
resume geophysics and geochemistry to further refine the dimensional mapping,"
says Jim Brown, Mill City's President & CEO.
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. 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 US$54 billion at
today's prices. More than 100 million ounces gold of proven and probable
reserves worth over US$72 billion remain in the ground.
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