Date: Nov. 28, 2012
MILLSTREAM PREPS PLANS FOR POTTER
Toronto, Ontario – Millstream Mines Ltd. (TSX- V: MLM, Frankfurt: NJD) wishes to announce a possible program to advance its VMS Potter Mine Property. Management has requested Dave Gamble P.Geo., a Qualified Person for the Potter Property, to review and present a proposal to further investigate ore bearing mineralization beyond the established 43-101 resources area. Management believes that Gamble’s recommendations are sound and warranted to advance the VMS property.
At the Company, current management considers the most effective way to unlock future value for the shareholders and advance the Potter Property is to establish a joint venture relationship with a strategic partner to carry out Mr. Gamble’s proposal.
Therefore, to this end, the Company is soliciting expressions of interest from qualified mining companies that wish to enter into a strategic partnership with the Company to advance the Potter Property.
The Potter Mine property hosts known VMS (volcanogenic massive sulphide) mineralization with an Indicated Resource estimate of 3.03 million tonnes and an Inferred Resource estimate of 2.07 million tonnes as estimated in the National Instrument NI 43-101 Technical Report on the Resources at the Potter Mine Property by Dave Gamble P.Geo and Qualified Person and Ed Bettiol P.Eng dated May 21, 2008.
Dave Gamble P.Geo., recommends an exploration program for the Potter Mine Project consisting of an Airborne Geophysical Survey over the property and a diamond drill program conducted from surface on various targeted areas. In more detail, it is as follows:
1. Airborne Geophysical Survey:
It is proposed that a helicopter-borne ZTEM (Z-Tipper Axis Electromagnetic) survey be conducted over the Potter Mine property by Geotech. The survey would consist of airborne Tipper AFMAG (audio frequency electromagnetics) measurements using the ZTEM system, and aeromagnetics using a caesium magnetometer. The recommended survey would consist of 17 flight lines oriented at 015 degrees, of approximately 2.5 kms long, and totaling 42.5 line-kms at nominal line spacing of 250 meters. The Potter Mine Property would be well suited to test the ZTEM capability to identify possible new targets and to define potential along strike and deep extensions of the known mineralization below 500 meter depths.
2. Diamond Drill Exploration Program:
It is proposed that an exploration diamond drill program be undertaken to test at least 4 recommended areas on the property. Identified from north to south the 4 areas are as follows:
1) The North Range area is located approximately 1..0 kilometer north of the Potter Mine VMS deposit. In this area there is a horizon of basalt ‘hyaloclastite’, tuffs and breccias with intercalated carbon rich to argillaceous mudstone lithologies that are similar to the host rock assemblages of the mineralized sequence at the Potter mine. This north range is the structural north limb of the regional McCool Hill syncline whereas the Potter Mine sequence lies on the structural south limb of this regional syncline. Associated with this north range horizon there are also strong I. P. (induced polarization) chargeability conductors with corresponding low resistivity responses as outlined in a Time Domain I. P. Real Section survey utilizing multiple gradient arrays as surveyed and processed by Quantec IP Inc. (1999) over the property. The strike length of this favourable assemblage extends with corresponding Real Section I. P. targets across the north part of the property. It is recommended that the North Range area be drill tested both along its strike length and at various depths in search for VMS mineralization.
2) The West and East Extension areas along strike and at depth from the known Potter Mine mineralized resource inventory sequence that was identified and reported in NI 43-101 Technical Report on the Resources at the Potter Mine Property (2008) should be continued to be explored. It is recommended that the untested areas be drill tested both along strike and at various vertical depths for the potential of developing additional VMS mineralization resources.
3) Within the Potter Mine sequence there is an apparent local fold structure known as the Potter anticline with a steep to vertical axial plane trending west-northwest and apparently plunging steeply to the west. The volcanic stratigraphy faces to the north on the north side, and to the south on the south side of this axial plane and this evidence helped to define this structure. The resource estimates reported in the NI 43-101 report May 2008 were developed primarily within the north limb of this local anticlinal fold structure. The south limb of the Potter anticlinal fold structure would therefore have the potential to host the possible continuation of the mineralization sequences at or near the equivalent stratigraphic level as the resource estimate mineralization encountered on the north limb. Furthermore, during the course of drill testing the Potter Mine mineralized mine sequence to develop the current resource estimate (2008) there were also several drill holes that encountered scattered shallow mineralization that would appear to lie within the south limb of this anticlinal fold structure. It is therefore recommended that the south limb of the Potter anticline be drill tested both along strike and also at various depths to explore for the depth extension of this shallow mineralization and also for the potential of developing additional VMS mineralization resources.
IV). Further, Mr. Gamble recommends that other property targets identified northeast and southwest of the mineralized Potter mine sequence from ground geophysical surveys conducted in 1999 and in early 2012 also be drill tested. In addition, further targets generated in the proposed Airborne Geophysical Survey Item #1 above may also warrant drill testing.
SUMMARY TABLE OF PROPOSED POTTER MINE DIAMOND DRILL
EXPLORATION PROGRAM METERAGES FOR AREAS
|
I) North Range Drill Targets |
6,500 |
II) West and East Mine Extension Drill Targets |
14,000 |
III) Potter Anticline South Limb Drill Targets |
6,000 |
IV) Other Property Drill Targets |
2,500 |
|
====== |
Total meters |
29,000 |
About Millstream Mines Ltd.:
Millstream Mines Ltd. is a Canadian-based mineral exploration company whose principle objective is to enhance and develop known mineral properties to production potential. The Company has projects in the Province of Ontario, Canada and in the State of Montana, USA.
The Potter Mine Property is a past producing mine and host to copper-zinc-cobalt “stacked” mineralized zones. Only seven (7) zones out of a total of eleven were used to calculate the resources at Potter. These seven zones occur within the mine area along a strike length of 250 meters, lie within a horizontal across strike (stratigraphic) thickness of 225 meters, and occur within a vertical distance of 725 meters from +50 meters above sea level down to -675 meters below sea level. The Property is located in the Abitibi Greenstone Belt, and more specifically in the Kidd-Munro Assemblage which are highly prolific in gold, silver, and base metal mineralization. The property may be accessed by a mining road off of highway 101, near the town of Matheson in north eastern Ontario and a 390 meter deep shaft resides on the property in tight proximity to the above NI 43-101 defined resource.
Potter Property NI 43-101 Resource Outline
Indicated Resource |
Tonnes |
Copper (%) |
Zinc (%) |
Cobalt (ppm) |
Silver (ppm) |
Gold (ppb) |
3,028,767 |
1.45 |
1.19 |
389.7 |
11.1 |
127.5 |
|
|
|
.039 % |
11.1 g/t |
.128 g/t |
|
Inferred Resource |
2,071,101 |
1.08 |
1.05 |
301.4 |
8.7 |
81.7 |
|
|
|
.0301 % |
8.7 g/t |
.082 g/t |
Exploration properties in the company’s portfolio also include the Uncle Sam gold project property in Montana and the Airport property (Sudbury basin precious metals project) in Ontario.
Further information about these properties and the company is available on our website: millstreammines.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Millstream seeks safe harbour with regard to forward looking statements.