Millstream Mines Ltd.

Millstream Mines Ltd.

May 06, 2010 11:21 ET

Millstream Reviews Gold-Silver Mineralized Porphyry at Tamarack

2.13 m (7 ft.) CHANNEL SAMPLE ACROSS PORTION OF 6.1 m (20 ft.) PORPHYRY CROSSCUT AVERAGES 7.2 g/t (.232 opt.) GOLD and 9.3 g/t (.30 opt.) SILVER

TORONTO, ONTARIO--(Marketwire - May 6, 2010) - Millstream Mines Ltd. (TSX VENTURE:MLM)(FRANKFURT:NJD) is pleased to announce that it has a favourable 6.1 metre (20 ft.) width of porphyry rock carrying gold and silver values at the Tamarack Gold Property of south western Montana. An indicative channel sample, taken by mine manager Steve Mortensen on April 28th, 2010, measuring 2.13 metres (7 ft.) in length along the face of the porphyry crosscut returned assays of 7.2 grams per ton (g/t) (.232 opt.) Gold and 9.3 g/t (.30 opt.) Silver. Millstream drifted through this porphyry structure in early 2008 while in the midst of advancing a drift to further explore the limits of the mineralization found in drill holes TR-2 and DDH-04-01 (see PR's dated November 26, 2007 and March 11, 2008). A sample of twenty tons of this porphyry material was blasted, mined and then later stored in a separate stockpile on surface. A mill test run utilizing this 20 ton porphyry material as feed averaged 8.55 g/t (.275 opt.) gold at the mill heads.

An historical report entitled, "Report On Property of Broadguage-Tamarack Mining Company" dated March 30, 1937 and written by Alexander Leggat, Mining Engineer of Butte, Montana recounts that, by way of a crosscut on the 400 mine level, a 20 ft. (6.1 m) porphyry zone was identified paralleling the strike of the historic Broadguage Vein. Also of note contained in this report was the fact that the Broadguage Vein and accompanying porphyry zone were exposed over a 100 foot strike length on the 100, 200 and 400 mine levels. This mineralized structure as a unit dips approximately 40 degrees to the west. While the Broadguage Vein was reported to have carried roughly 1 ounce per ton (31.1 g/t) gold (historic assay from Leggat), the porphyry zone carried a relatively more modest average value of 9.3 g/t (.30 opt.) gold (also an historic assay from Leggat) and for this reason was left untouched (at the time of mining gold was valued at U$20.00 per ounce). The crosscut developed by Millstream in more recent times is found 14 ft. (5.88 m) above the old 100 mine level which finds itself 20 feet (6.1 m) above the old 200 mine level which in turn finds itself 60 feet (18.3 m) above the old 400 mine level for a combined exposed vertical height of 94 feet (28.65 m) separating the crosscuts. Thus, the 2 crosscuts plus drifts on the 100 and 200 mine levels tie in outlining along dip a 150 foot (45.7 m) interval of the porphyry with a strike length of 100 ft. (30.5 m). The mineralized material contained within this porphyry unit having dimensions of 100 ft. (30.5 m) of strike length, 150 ft. (45.7 m) down-dip length and 20 ft. (6.1 m) width is 25,000 tons*. 

Steve Mortensen, present Mine Manager at Tamarack, recalls, "Back in 1962, I worked in the [Tamarack] mine and witnessed first hand the presence of the porphyry located on the 400 mine level. A 20 foot sample of the porphyry in the crosscut ran .30 ounces of gold (historical assay from Leggat)."

Porphyry deposits can be very large in both depth and lateral dimensions and if mineralized may contain vast amounts of commercial mineralized material. With this in mind, Millstream management will continue to pore over all data and maps related to the mine development at Tamarack, from past through to the present, in order to get a clearer picture of the potential significance of the porphyry. This mineralized porphyry to date has yet to be explored laterally and below the 400 mine level. With the anticipation of further success, management will also endeavour to follow up with the much warranted work needed to further define this mineralized geologic feature. As well, a number of targets derived from a previous Mag Survey (see MLM PR dated Nov. 26, 2007) remain untested to date and hence will be included in the above aforementioned pursuit. To view this survey, please use the following link:

Ernest Harrison, E.M., CEO of the company, believes that the Tamarack Property is well on the way to becoming a producing, high-grade gold operator in the Tobacco Root Mountains, Madison County, Montana. Millstream has a 100% interest in the Tamarack, lode gold bearing, Property and its associated assets. The Tamarack Property is accessible year round, 4 miles from the town of Sheridan, on a well maintained gravel road. The associated assets of the property include a newly refurbished 100 tons per day (tpd) mill. Additional assets include tailings disposal ponds, a water supply lagoon and well, compressors, bulldozers, loaders, haulage trucks, underground mining equipment, parts and tools. An electric power transmission line complete with a sub-station on the property has been energized through the electrical utility, NorthWestern Energy.

Sample preparation and analyses for this release was conducted by Norris Lab of Norris, Montana using the fire assay method on samples supplied by Millstream. Norris Labs is not registered by the international standards organization and are used due to proximity and quick turnaround results. These samples were composed of the 2.13 m (7 ft.) porphyry channel sample weighing 11 lbs. (4.99 kg.) along with a blank check sample. All assays of an historical nature have been reported as such. Millstream's on site assay lab at Tamarack provided the average assay via fire assay method for the 20 ton porphyry sample. Thus, these latter two sources have not been independently confirmed and therefore cannot be relied upon. 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.

*(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 NI 43-101 defined and verified by a qualified person, and therefore, this estimate should not be relied upon. The Company is not aware of any mineral resources or Mineral Reserves, as defined by C.I.M. or other organizations that have been defined at Tamarack.)

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

May 5, 2010  Close: $0.04

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)