Mill City Gold Corp.

Mill City Gold Corp.

March 01, 2011 09:16 ET

Mill City Provides Croxall Property Update

CALGARY, ALBERTA--(Marketwire - March 1, 2011) - MILL CITY GOLD CORP. (TSX VENTURE:MC) ("Mill City" and/or the "Company") is pleased to provide an update on its exploration program on the Croxall Property ("Croxall" and/or the "Property"), a key property located in the West Timmins gold district.

Diamond drilling carried out in January and early February consisted of three holes totalling 1,254 metres. No significant assays were returned from samples taken from the first two holes. The assays for the third hole remain outstanding at this time and, if significant, will be reported when available.

The first two holes were designed to evaluate stratigraphy some 3,000 metres to the east southeast of a location where Lake Shore Gold Corp. ("Lakeshore") has announced their intention to complete an updated resource estimate on the Golden River gold zones in early 2012. Diamond drilling in the 1990's 700 metres to the northwest of the current drilling area included a hole that assayed 7.68 g/t gold over 9.6 metres. Another hole on a parallel gold zone at that time intersected consecutive one metre intervals grading 1.51 g/t gold, 1.92 g/t gold and 4.49 g/t gold a similar distance northwest of Croxall.

Each of the first two holes in the current diamond drill program intersected highly sheared and altered sediments, porphyritic intrusive bodies and variably fuchsite altered ultramafic rocks thought to be located immediately to the north of the regionally important Porcupine Destor Fault Zone.

The third hole in the program that had to be cut short due to lack of available water for drilling, was drilled to the north of a previous drill hole that intersected a felsic porphyry body and was stopped early due to difficult ground conditions. Highly altered sediments and altered, porphyritic intrusive units were intersected in the hole.

Diamond drilling is planned to re-start once warmer weather results in water being more readily available for drilling. It is currently estimated that drilling could commence in about 4-6 weeks.

No drilling was carried out in the northern part of the Croxall property in this initial work. Recent results announced by Explor Resources Inc. at a location some 4,000 metres to the northwest of the Croxall have been very encouraging and include up to 30.6 g/t gold over 4.4 metres and most recently 135 g/t gold over 3.1 metres at depths of more than 500 metres. These encouraging results along with significant deep discoveries on the nearby Lakeshore property may indicate that deeper drilling is warranted on some of the areas of the Croxall Property where gold values and even visible gold have been reported in the past by Temex and others.

Previous work on the Property consists of more than 40 drill holes by several different operators over more than 25 years which provides an excellent database for certain parts of the Property while other areas remain almost completely unexplored.

The Property is nearly completely overburden covered thereby precluding prospecting success and necessitating significant long term exploration programs and significant expenditures to build a solid geological database. Most of this type of work has been completed over the years and is available for further defining the prospective locations for gold mineralization.

The recent Lake Shore assay results, excellent logistics, large land position and excellent discovery potential on the Property puts Croxall on a short list of first class exploration properties located in the newest part of the developing West Timmins gold district.

Mill City has the option to earn a 75% interest in Croxall from Temex Resources Corp. by spending $750,000 on Croxall over four years with a firm commitment of $250,000 during the first year.

Bruce Durham, P.Geo., a qualified person under NI-43-101 reviewed this release and is the person responsible for the technical information contained in this release. All technical data in this release is of a historical nature and has not been verified by a Qualified Person.

For further information please visit the Company's website at


James R. Brown, Chairman, President & CEO

Forward Looking Statements:

This news release includes certain "forward-looking statements". Such forward-looking statements involve risks and uncertainties. The results or events predicted in these forward-looking statements may differ materially from actual results or events. The Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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