Millstream Mines Ltd.

Millstream Mines Ltd.

May 04, 2007 09:00 ET

Millstream Acquires 100% of Tamarack Gold Mine

TORONTO, ONTARIO--(CCNMatthews - May 4, 2007) - Millstream Mines Ltd. (TSX VENTURE:MLM)(FRANKFURT:NJD) is pleased to announce that it has entered into an agreement with its partner at the Tamarack Mine Property to buy out the remaining 49.5% interest. In exchange for US$300,000, of which a US$60,000 down payment has already been delivered, Millstream will acquire a 100% ownership of the property. The ex-partner will retain a 0.5% NSR on the gold output alone with Millstream having the right to buy it back for US$400,000.

Millstream continues operations on the property in order to achieve gold production in the near future. Ore material is being hauled out of the recently excavated decline (see PR Dec. 7, 2007) and stockpiled on surface. There is presently an approximate 1500 tons sitting ready to be processed. The mill has been refurbished and upgraded to achieve a capacity of 100 tons per day. A bond has been posted for the tailings impoundment and a liner has been ordered so that any potential seepage into the ground water system is mitigated. When the liner has been installed and the site thus environmentally approved, an initial mill feed of low grade gold material will be run to adjust the process, line the circuit and act as a bulk sample recovery test. The process will produce a table gravity gold concentrate and a flotation gold concentrate. The flotation concentrate will be further treated using a proprietary leaching process and resin gold recovery system.

Further east up the mountain (6 miles or 10 kilometres) lays the Uncle Sam Property of which Millstream controls a 50% ownership stake. In the past, detailed geophysical, geochemical and geological surveys have extended the previous workings to cover a gold/graphite bearing structure over 8,000 feet long or 2.44 kilometres. The investigation indicated the presence of other lode gold occurrences associated with the known mineralized Uncle Sam Fault zone. All previous mining has come within or at the Uncle Sam Fault over a width of three (3) to ten (10) feet (1 to 3 metres), adjacent to a competent hanging wall porphyry, that is part of a Fault zone which is about sixty (60) feet in true thickness. Approximately 4,500 tons of broken up ore material carrying an average grade of .45 ounces per ton gold remain in the old stopes of the mine (see PR Oct. 12, 2006). Hence, this property will be an important component in Millstream's Montana gold operation as a source of feed for its mill at Tamarack.

Management has reviewed this report and press release with the company's consultant, Phil A. Brown, P.Geo, who is the designated qualified person for the property per NI 43-101.

The principle objective of Millstream Mines Ltd. is to enhance and develop known mineral properties to production potential.

Millstream seeks safe harbour with regards to forward looking statements.

50,751,040 SHARES ISSUED

May 3, '07 Close: $0.355

No regulatory authority or similar body approved nor disapproved the information contained herein.

Contact Information

  • Millstream Mines Ltd.
    Mr. Ernest Harrison, EM
    (705) 474-7282
    (705) 474-5491 (FAX)
    Millstream Mines Ltd.
    Mr. Marty Martinello, B.A.
    (705) 474-7282
    (705) 474-5491 (FAX)
    Millstream Mines Ltd.
    Mr. Robert Chase, B.A.
    (416) 368-9595
    (416) 368-6827 (FAX)