Millstream Mines Ltd.

Millstream Mines Ltd.

August 23, 2010 11:03 ET

Millstream Mines Ltd.: Tamarack Potential Open Pit 1,000,000+ Tons

TORONTO, ONTARIO--(Marketwire - Aug. 23, 2010) - Millstream Mines Ltd. (TSX VENTURE:MLM)(FRANKFURT:NJD) reports that on its Tamarack Gold property, an outlined surface area, as exposed over 1,000 feet long, up to 500 feet wide, and thickness ranging from 30 to 100 feet or more with possible average grade of 0.10 to 0.15+ gold ounces per ton (opt) has been revealed through an evaluation by consulting firm Whitney & Whitney Inc., a management, engineering and geological service provider to the mineral resource industry.

Whitney & Whitney Inc. (W&W), prepared a report in 1985 (pre-NI 43-101) for an investor seeking a property having significant potential for relatively rapid development to the production stage. The report entitled, "Evaluation of the Tamarack Mine" defined the above dimensioned area as a transition zone between the limestone and the mafic gneiss. The report states, "potential exists within the transition zone for an open pit mine exceeding 1,000,000 tons. An average grade of 0.10 to 0.15+ gold opt. is possible". W&W's sampling program incorporating 134 underground samples from levels 100, 400, & 500 along with 226 surface samples were analyzed for gold and silver using conventional fire assay techniques by Blue Range Engineering in Butte, Montana. In this transition zone gold assays from the surface rocks of up to 0.6 opt were reported.

Based on 12 cubic feet of material equivalent to a ton and the above transition area configurations, the potential volume of material can range from 1,000,000 up to 4,000,000+ tons containing possible gold ounces of up to 600,000+.

Upon securing sufficient funding Millstream plans to carry out the requisite investigation, drilling and sampling needed to bring the report in compliance with existing NI 43-101 technical resource guidelines. A NI 43-101 compliant resource with the above suggested tonnage could lead to a feasibility study. (Caution: The mineralized material tonnage calculation relies upon information of an historical nature and cannot be confirmed by the company for certainty. Hence it is not currently NI 43-101 defined and remains unverified by Millstream's qualified person, and therefore, this estimate should not be relied upon.)

The Tamarack Gold property is accessible year round, 4 miles from the town of Sheridan, on a well maintained gravel road.

Ronald Blais, P.Eng, consultant of Millstream, is the Qualified Person as described in National Instrument 43-101 for the Tamarack Gold Property. He has reviewed this report and press release with company management.

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 past producing Potter Mine Property is host to copper-zinc-cobalt "stacked" mineralized zones located in the highly prolific Abitibi Greenstone Belt and more specifically in the Kidd-Munro Assemblage near the town of Matheson in north eastern Ontario. An initial NI 43-101 compliant resource estimate on the Potter revealed an indicated resource of 3,028,767 tonnes at 1.45% copper, 1.19% zinc, 389.7 ppm cobalt, 11.1 ppm silver, and 127.5 ppb gold along with an inferred resource of 2,071,101 tonnes at 1.08 % copper, 1.05 % zinc, 301.4 ppm cobalt, 8.7 ppm silver, and 81.7 ppb gold. The Tamarack Gold Property, a high grade former gold producer in the Tobacco Root Mountains of south western Montana, is in an advanced stage of underground exploration and development operating under the Small Mines Exclusion Act of the State of Montana.

73,851,707 SHARES ISSUED

Aug. 20, 2010 Close: $0.03

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.

Contact Information

  • Millstream Mines Ltd.:
    Mr. Ernest Harrison, EM
    705-474-5491 (FAX)
    Millstream Mines Ltd.:
    Mr. Marty Martinello, B.A.
    705-474-5491 (FAX)
    Millstream Mines Ltd.:
    Mr. Robert Chase, CFA
    President & CFO
    416-368-6827 (FAX)