Mill Bay Ventures Inc.
TSX VENTURE : MBV
PINKSHEETS : MLBVF
FRANKFURT : M4K

Mill Bay Ventures Inc.

February 01, 2012 08:00 ET

Mill Bay Ventures Completes Second Mercury Soil-Gas Survey at AC Claims, Lander County, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2012) - Mill Bay Ventures Inc. ("Mill Bay" or the "Company") (TSX VENTURE:MBV)(PINKSHEETS:MLBVF)(FRANKFURT:M4K) has recently completed a second mercury soil-gas survey at its AC claim area located in Lander County, Nevada. The survey was initiated to better define mercury -bearing structural zones interpreted from an initial survey completed in July 2011 ( see News Release of September 26, 2011).

Analysis of mercury vapor in soil-gas is one of the best pathfinders for blind or buried ore bodies, and it is often possible to vector the direction of an ore zone. Mercury is used as a pathfinder for buried metallic ore bodies because it develops primary aureoles, and in later stages by supergene processes, generating secondary halos in the host rocks. The shape and size of mercury soil-gas halos, developed above the ore body to a distance of as much 1,000 meters (3,280 yards), depends on the mobility of halo-forming elements and geologic factors such as faults, fractures and the permeability of the enclosing rocks. The detection of mercury in soil-gas provides an exploration technique in areas where the deposit is covered by non-mineralized rock.

Soil samples were collected on 20-meter (65.6-foot) centers along seven, east-west, fill-in lines located between the original four-line survey, reported in September 26, 2011. The mercury soil-gas survey was specifically designed to validate north-south oriented structures detected by a previous CSAMT survey. A total of 256 soil samples were collected and prepared and analyzed for mercury by MEG Labs, Carson City, Nevada, using a proprietary soil-gas method (GAS'm).

In the AC claim area, the new data appears to indicate that mercury gas is localized along north-south oriented structures with elevated concentrations occurring at the intersection with northwest-trending structures.

Ten mercury soil-gas targets are defined and prioritized from A through J. The highest priority Targets (A, B, & C) are found on the two southernmost lines. They define good structural development with broad low-temperature mercury shoulders. The best Target (A) is a north-south zone of mercury enrichment that is 360 meters (1,180 ft) wide, with mercury concentrations that are two orders of magnitude above background.

Targets B & C are located south of Target A along the same sets of north-south structures. The mineralized zone that defines Targets A, B, & C appears to be about 360- 460 meters (1,180-1,508 ft) wide (east-west) and 100+ meters (328+ ft) long (north-south).

Two to three vertical drill holes are recommended to test for gold mineralization associated with the structural zones defined by mercury Targets A, B, & C. Each hole should be collared with a reverse circulation drill and completed to a depth of around 366 meters (1,200 ft). Management is pleased to report that a controlled source audio magneto-telluric (CSAMT) geophysical survey and a follow up mercury soil-gas survey was recently completed over a 1 X 1 km (0.6 X 0.6 mile) area located in the west portion of the AC claims, located south of Battle Mountain, Nevada, USA. CSAMT is a geophysical technique that provides deep geologic information based on lateral and vertical resistivity contrasts. Results from CSAMT survey lines covering a 1 X 1 km area indicates a major north-south structural zone, first defined by gravity, is well resolved by the CSAMT and revealed to be composed of approximately four major structures.

Analysis of mercury vapor in soil-gas is one of the best pathfinders for blind or buried ore bodies, and it is often possible to vector the direction of an ore zone. Mercury is used as a pathfinder for buried metallic ore bodies because it develops primary aureoles, and in later stages by supergene processes, generating secondary halos in the host rocks. The shape and size of mercury soil-gas halos, developed above the ore body to a distance of as much as 1,000 meters (3,280 yards), depends on the mobility of halo forming elements and geologic factors such as faults, fractures, and the permeability of the enclosing rocks. The detection of mercury in soil-gas provides an exploration technique in areas where the deposit is covered by non-mineralized rocks.

Soil samples were collected on 20 meter (65.6 feet) centers along four lines in an area of previous geophysical survey work, by Shea Clark Smith (Mineral Exploration and Environmental Geochemistry, Consultant, Reno, NV). Deep structures with a north-south orientation had been detected using CSAMT. Survey work commenced in July 2011. A total of 180 samples were taken for Mill Bay Ventures near the three original CSAMT lines, with one additional line approximately 600 feet (183 meters) further south. All lines were oriented east-west. The samples were prepared and analyzed for mercury at MEG Labs, Carson City, Nevada, using a proprietary soil gas method (GAS'm). Two species of mercury are evolved. Highly mobile mercury (from low thermal desorption temperatures) indicates deep sources while less mobile mercury (from higher desorption temperatures) indicates shallow sources. Deep mineralization is indicated when geochemical profiles of these two mercury species are compared. The most prominent soil gas anomaly (Target B, C & D, vertical and west dipping), appears to be independent of CSAMT features. It is a 60-100 meter wide zone with an apparent strike length of 700 meters and oriented NNE.

Target A (west dipping) is a broad zone that extends from the highway to the west, with an apparent west dip. This soil gas anomaly lies directly south of a CSAMT feature and may have some relationship to a deep seated structure as indicated by the CSAMT results. Another anomaly (Target E, east dipping) is located in the northwest corner of the survey area and appears to be related to a 1 km long N-S oriented CSAMT anomaly. Other soil gas anomalies are narrow and are not likely to be productive. Target A is the shallowest target, based on gravity, and closest to what may be an intersection of CSAMT structures with the Caetano Break. Deep sourced mercury creates a broad zone, dipping to the west from a leaky structure. Targets B, C, and D delineate a through-going structural system with a strike length of 700 meters, and a variable width of 60-100 meters. Structures that are bringing mercury to the surface are relatively tight at B, broaden to 60 meters at C, and open into the adjacent claim block at D. These anomalies are generated from increasingly deep mineralized bedrock. Target E appears to be on a CSAMT structure. This anomaly is isolated at the far west end of Line D, yet has relatively robust mercury leakage, as revealed in the low-thermal data. Depth to mineralized bedrock must be very deep as suggested by gravity data, and block faulting from the CSAMT data.

The AC claims are located 5 miles (8.3 kilometers) SE of Cove, 21 miles (34.9 kilometers) WNW of Pipeline, and 26 miles (43.2 kilometers) NW of Cortez gold deposits in Nevada. Further work is planned on these deep gold drill targets outlined by CSAMT and mercury soil-gas surveys on the AC claims.

The contents of this news release have been reviewed by Andris Kikauka, P.Geo., a qualified person as defined by NI43-101.

AC project data, including a power-point presentation, gravity and CSAMT reports, can be viewed on the Mill Bay website: www.millbayventures.com.

ON BEHALF OF THE BOARD

William Glasier, President

This release contains statements that are forward-looking statements and are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.

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Last Trading Price: $0.055

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