NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES.
TSX VENTURE SYMBOL "MC"
CALGARY, Nov. 10 /CNW/ -MILL CITY GOLD CORP. ("Mill City" and/or the "Company") is pleased to announce its entry into the new Yukon gold rush with the acquisition of the Rosebud 12 Property to the northeast of the White Gold and Coffee Creek areas.
Regional geological information indicates that the Rosebud 12 property is underlain by the same geological units as those that host the significant new gold zones discovered in the Underworld (Kinross) and Coffee Creek (Kaminak) areas, is virtually unexplored, and has a gold geochemical target similar to the one that first drew attention to the Coffee Creek area and resulted in the Coffee Creek gold discoveries.
The Rosebud area has very little history of previous gold exploration. There is no record of gold exploration on or near the property despite the presence of favourable gold geochemistry and a history of placer gold mining extending upstream to a point very close to the property boundary.
The entire Coffee Creek and Underworld Rosebud area was not glaciated during the last ice age and as a result of millions of years of weathering, bedrock exposure is limited although the remnant oxidized soils and surface debris provide a very good medium for modern geochemical survey methods that provide tools to rapidly evaluate the overall potential of an area. These techniques, when combined with good prospecting, sound geological understanding and lightweight excavation equipment is the package of exploration techniques that have resulted in many new gold discoveries in the Yukon over the past two summers and that will continue to drive exploration and gold discoveries for the next several years in the Yukon. Placer gold mining in the Yukon has produced many millions of ounces of gold and despite this and continuing placer gold discoveries, significant bedrock discoveries were limited until the recent discoveries that are now being reported at several locations.
The exciting new gold discoveries at places like Coffee Creek (Kaminak) and Sten (Atac) indicate the tremendous gold exploration potential in the Yukon in widely separated areas and different geological settings using the above noted techniques. The large amount of capital that is finding its way to the Yukon will undoubtedly result in ongoing significant discoveries for years to come.
The Coffee Creek gold discovery was made as a result of follow-up work on a gold anomaly identified in a regional geochemical survey that identified a gold anomaly in a small creek not far from the source of the anomaly. A similar geochemical feature has been identified at Rosebud 12 and no work appears to have been carried out to define the source of the strong (up to 99th percentile gold value) gold anomaly.
An evaluation of structure, geology, airborne magnetic data and topography indicate that the Rosebud 12 Property covers the likely source of the distinct and strong gold in silt anomaly.
Active and historic placer gold mining is known to have taken place very close to the southern part of the property and no source has ever been identified for the placer gold.
Numerous structures are interpreted to cross the property and given that structure has been shown to be very important in controlling gold mineralization at locations such as Coffee Creek, structural mapping along with prospecting, geological mapping and soil geochemistry will be the primary programs undertaken to establish the source of the strong gold geochemical anomaly. An initial visit to the area of the property identified altered soil zones and quartz float that require follow-up and detailed sampling.
The property, comprised of 48 claims covering approximately 1000 hectares, is located 76km northeast of the Coffee Creek gold discoveries and a similar distance east of the Underworld gold discovery. The option on the Rosebud 12 Property was acquired from the YC Syndicate, a private prospecting syndicate, the principals of which have a long history of exploration in the Yukon.
To earn a 70 % interest in the Rosebud 12 Property, the Company must make an initial cash payment of $75,000, issue 200,000 shares and incur exploration expenses totalling $200,000 by the first anniversary of the agreement. The Company is also required to make additional annual cash payments totaling $1,375,000 and issue an additional 2.8 million shares over a five year period. The Company must provide written notice on or before the fifth anniversary to fund the preparation of a feasibility study within three years after the date of such notice. The Company has the option of issuing shares in lieu of any required annual cash payments. The YC Syndicate shall retain a 3% net smelter returns royalty of which Mill City can purchase 1% for $1.5 million within 90 days of delivery of a positive feasibility study.
The company is continuing to evaluate potential property acquisitions in the Yukon.
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.
ON BEHALF OF THE BOARD OF DIRECTORS
"James R. Brown"
James R. Brown
Chairman, President & CEO
Neither 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.
Cautionary Statement Regarding Forward-Looking Information
All statements and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors (including, among others, risks related to option and joint venture arrangements and actual results of current exploration activities) that could cause actual results to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.
For further information:
please contact James R. Brown at 403-640-0110 or visit the Company's website at www.millcitygold.com
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