MILL CITY TO COMMENCE CROXALL DRILLING ADJACENT TO LAKE SHORE GOLD CORP.
/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES/
TSX VENTURE SYMBOL "MC"
CALGARY, Nov. 9 /CNW/ - MILL CITY GOLD CORP. ("Mill City" and/or the "Company") is pleased to announce that drilling will commence shortly on the 2400 acre Croxall property, a key property located in the West Timmins Gold District where Lake Shore Gold Corp. ("LSG") is in the pre-production phase of developing the first gold mine on the Timmins Mine Project, 6 km northwest of Croxall.
Highlights
- Initial drilling will test for extension of three separate gold zones evaluated on the adjacent property in the 1990's
- LSG reported in September 2010 that drilling was proceeding on the Golden River Zones with four diamond drills (approximately 3km west of the Croxall property).
- No drilling has been completed on the Croxall Property southeast of historic drill holes from the1990's that included one hole that assayed 0.224 ounces per ton gold over 9.6 metres approximately 700m to the northwest of the corner of the Croxall property. Another hole on a parallel gold zone intersected consecutive one metre intervals grading 0.044 ounces per ton gold, 0.056 ounces per ton gold and 0.131 ounces per ton gold a similar distance northwest of the Croxall Property.
- Initial drilling will be comprised of 6 or more holes totalling at least 2500 metres.
Previous Work
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 work has been completed over the years and is available for further defining the prospective locations for gold mineralization.
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 Gold Corp property. Work on LSG property has resulted in the discovery of significant gold mineralization and LSG is currently developing 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.
The excellent logistics, large land position and excellent discovery potential on the property puts the Croxall Property on a short list of first class exploration properties located in the newest part of the developing West Timmins Gold District.
Mill City has the option to earn not less than a 75% interest in the Croxall property from Temex Resources Corp. by spending $750,000 on the property 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.
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:
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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