Mineral Mountain's Holy Terror Gold Project Adds Another High Grade Gold Producer With the Purchase of the "Bismarck Mine"
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/06/12 -- Mineral Mountain Resources Ltd. (TSX VENTURE: MMV)(OTCQX: MNRLF) -
Highlights:
-- The Holy Terror Project now hosts 8 former high grade gold producers.
-- Located 600 metres northwest of the Keystone Mine along same
stratigraphic horizon and 320 metres west of the Egyptian #2 mine.
-- Historical drilling intersected wide intervals of fault-related,
sulphide replacement-type gold mineralization (Homestake-style).
-- Sulphide mineralization is typically pyrite and pyrrhotite associated
with biotite schist, iron formation and amphibolite.
-- Historical drill hole KG94-59 intersected an impressive 31.7 metres
grading 3.94 grams Au per tonne.
Mineral Mountain Resources Ltd. ("Mineral Mountain" or the "Company") and its joint venture partner Holy Terror Mining Company ('Holy Terror Mining") are pleased to report that the Holy Terror Project has once again been expanded to include the acquisition of the Bismarck Mine, a historical gold producer that is situated 600 metres northwest of the Keystone Mine and considered to be along the same stratigraphic horizon. The newly-acquired patents, which can be viewed on the Company's website www.mineralmtn.com, consist of 8 patented claims totaling 44.3 acres. In news releases dated May 31, 2012 and subsequently in August 20, 2012, the Company announced the signing of an option agreement with the Holy Terror Mining Company, a 120-year old privately-held mining company that owns 14 patented mineral claims and 22 unpatented mineral claims totalling 532 acres (215 hectares) and the recent purchase of the adjoining Bullion Mine property totaling 721.8 acres located along the southeastern extension of the Homestake gold belt in the Keystone Mining District of South Dakota, U.S.A. With the acquisition of the Bismarck Mine property, the Holy Terror Project now totals 766.1 acres.
The Bismarck Mine
The Bismarck Mine occurs contiguous to the Keystone Mine to the southwest and to the Egyptian No. 2 Mine to the west. Prospectors identified widespread pyrite and pyrrhotite mineralization associated primarily with iron formation ranging up to 20% sulphides. It was decided to sink shaft in 1893 on the heavier sulphide concentration without a single drill hole and based on surface sampling alone. In the Keystone Mining District, the Bismarck Mine is one of the earliest gold mining operations in the district, with small scale mining initiated in 1893 and producing until 1936. During that period, more than 4,256 tonnes grading 8.23 grams per tonne for a total of 1,127 ounces (35,054 grams) of gold were produced.
From 1980 to 1984, the Homestake Mining Company acquired the Bismarck Mine property as part of the Company's effort to consolidate the Keystone Mining District. The exploration program conducted by Homestake included detailed surface and underground mapping, a VLF survey, a ground magnetic survey covering a large area and the drilling of 12 exploration boreholes at surface in the Bismarck area during two separate drill campaigns in 1983 and 1984. Of significance, borehole KN83-5, drilled in the vicinity of the Bismarck mine workings, returned 15.68 g/t Au (0.46 opt Au) over a core length of 4.42 metres (14.25 feet) from 122.99 metres to 127.41 metres down the hole. Similarly, a second borehole, KG83-4, at surface returned 10.04 g/t Au (0.29 opt Au) over a core length of 4.12 metres (13.29 feet) from 128.38 metres to 132.50 metres down the hole. These drill results were highly encouraging to Homestake but the Company's inability to consolidate the adjacent property holdings led to a decision to give the Bismarck property back to the owners.
Between 1993 and 1995, Energy Fuels Corporation drilled 7 surface boreholes testing the Bismarck Mine gold mineralization focusing in the area of the historical mine workings. The Energy Fuels drilling program was designed to confirm the existence of economic gold mineralization remaining in the Bismarck Mine. The drilling pattern focused between the 100- and 200-foot levels of the old workings for the purpose of outlining a potential mineable gold resource. Demonstrating the potential for broad gold intervals, borehole KG94-56 drilled down plunge from the Bismarck mine workings returned 3.94 g/t Au (0.115 opt Au) over a core length of 31.7 metres (98.27 feet) from 79.55 metres and 111.25 down the hole.
The most significant gold intersections from the Homestake and Energy Fuel drilling campaigns are summarized in Table I below.
Table 1
List of Historic Drill Holes Energy Fuels Corporation and
Homestake
Bismarck Mine Horizon
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CORE
FROM TO LENGTH AU
HOLE (M) (M) (M) G/T Company
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KG93-21 23.01 26.82 3.81 5.69 Energy Fuels
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KG93-24 27.43 31.70 4.27 7.53 Energy Fuels
------------------------------------------------------------------
KG93-34 33.22 36.73 3.51 8.93 Energy Fuels
------------------------------------------------------------------
95.56 97.69 2.13 12.88
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KG94-46 151.55 158.92 7.38 6.57 Energy Fuels
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KG94-58 96.71 99.37 2.65 11.81 Energy Fuels
------------------------------------------------------------------
KG94-59 79.55 111.25 31.72 3.94 Energy Fuels
------------------------------------------------------------------
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KN83-4 128.38 132.50 4.12 10.04 Homestake
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KN83-5 122.99 127.41 4.42 15.68 Homestake
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Note: All borehole widths quoted in Table 1 above are believed to be down-
hole core intervals and due to the complex structure are not considered to
be true widths.
Terms of the Bismarck Mine Purchase
The 44.3-acre Bismarck Property located in Pennington County, South Dakota and adjoining the Holy Terror Mining property (see news release dated May 31, 2012) and more particularly described in Schedule "A" attached was purchased by the joint partners of the Holy Terror Mining Company on June 1, 2012 from Mrs. Alice Brekhus for the purchase price of $227,095.00 US.
On August 27th, 2012, all interests in the Bismarck Property were transferred to the Holy Terror Mining Company, and, since the property falls within the Area of Interest of the joint venture agreement between the Holy Terror Mining Company and Mineral Mountain Resources Ltd., the Company will have the right to earn a 75% interest by meeting its obligations defined in the agreement. Mineral Mountain, as part of its obligations has reimbursed Holy Terror Mining Company the sum of $227,095.00 US.
Nelson Baker, President and CEO of Mineral Mountain comments: "Being able to add the Bismarck Mine to our Holy Terror land package is a very important step because we now have consolidated eight (8) former high grade gold deposits in the district. The deepest gold producer known in the district was the Holy Terror Mine at 300 meters. There's been no historical drilling at all below the 200 m level."
Qualified Persons
The Holy Terror gold project is managed by Kevin Leonard, a Professional Geologist with greater than 30 years of exploration experience. Wally Rayner (P.Geo.), the Company's VP of Exploration, has verified the contents of this press release and is the Qualified Person for this project.
Granting of Incentive Stock Options
The Company wishes to announce the granting of incentive stock options to certain directors, officers, employees and consultants to purchase up to 3,075,000 common shares under the Company's Incentive Stock Option Plan. The options will be granted for a period of five (5) years commencing September 6, 2012, exercisable at a price of $0.28 per share.
On Behalf of the Board of Directors
MINERAL MOUNTAIN RESOURCES LTD.
Nelson W. Baker, President and CEO
Reader Advisory
This release includes certain statements that may be deemed to be "forward-looking information" under Canadian securities laws. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, constitute forward looking-information. Forward looking information consists of statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking information are based on reasonable assumptions, such information does not constitute guarantees of future performance and actual results may differ materially from those in forward-looking information. Factors that cause the actual results to differ materially from those in forward-looking information include gold prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, continued availability of capital and financing and general economic, market or business conditions. The Company cautions the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Company's forward-looking information should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct. Please see the public filings of the Company at www.sedar.com for further information.
SCHEDULE "A"
Legal Description of the Bismarck Mine Property
TOWNSHIP 2 SOUTH, RANGE 6 EAST, SECTION 5, PENNINGTON COUNTY, S.D.
1. Part of the King Fraction Lode, MS 1256 (3.06 Acres)
2. West Lode, MS 1256 (9.45 Acres)
3. Grand Island Lode, MS 1712 (10.02 Acres)
4. Bismarck Lode, MS 1407 (1.16 Acres)
5. Hidden Treasure Lode, MS 1407 (3.95 Acres)
6. Part of Grand Island Lode, MS 1712 (0.54 Acres)
7. Part of Bismarck Lode, MS 1407 (8.08 Acres)
PART OF HIDDEN TREASURE, MS 1407 (8.03 Acres)
Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Mineral Mountain Resources Ltd.
Brad Baker
Vice-President Corporate Development & Director
(778) 383-3975
bbaker@mineralmtn.com
www.mineralmtn.com