Millstream Mines Ltd.

Millstream Mines Ltd.

October 12, 2006 11:03 ET

Millstream Acquires 50% Ownership in Uncle Sam Gold Mine

TORONTO, ONTARIO--(CCNMatthews - Oct. 12, 2006) - Millstream Mines Ltd. (TSX VENTURE:MLM) wishes to announce that it has negotiated a 50% ownership interest in the Uncle Sam lode gold/silver bearing claims, located in the southwestern part of the State of Montana. Millstream's interest is fully vested based on consideration that it has completed a substantial amount of development work and exploration expenditures on the property in the past (see PR's Aug. 7 & Aug. 15 of 1997).

The Property is a high grade, former gold producer in the Tobacco Root Mountains, Madison County, Montana. The Property, accessible year round on a maintained gravel road, is situated ten (10) miles to the east of Sheridan, Montana and just 6 miles to the east of the Tamarack Gold Property (see PR Sept. 19, 2006). Detailed geophysical, geochemical and geological surveys have extended the previous workings to cover a gold/graphite bearing structure over 8,000 feet long. The investigation has 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, adjacent to a competent hanging wall porphyry , that is part of a Fault zone about sixty (60) feet in true thickness.

In the past, (see PR Sept. 9, 1996) Millstream investigated, surveyed and sampled the Property underground workings and surface waste piles. The samples collected and tagged were sent for assaying at Assay Lab, Inc., West Jordan, Utah, USA, Norris Lab., Norris, Montana, USA and Swastika Laboratories, Swastika, Ontario, Canada. Samples taken from the hanging wall assayed at 36.2 grams (1.164oz) of gold and 82.7 grams (2.66 oz) of silver per ton. Vein material assayed at 16.04 grams (0.516 oz) of gold and 15.24 grams (0.49 oz) of silver per ton with minor lead and zinc values. The following chart of assays (see PR Aug. 15, 1997) was derived from samples taken from a combination of channels (cs), wall chips (wcs), and channel trenches in broken ore (cts):

Sample No. Au(opt) Ag(opt) Sample Length(ft.) Sample Type

223259 1.212 5.7 17.0 cts
223260 1.740 2.43 17.0 cts
223261 0.013 0.09 15.0 cts
223262 0.051 0.10 29.0 cts
223263 0.793 1.22 40.0 cts
223264 0.345 0.59 40.0 cts
223265 0.420 0.48 11.0 cts
223266 0.836 0.75 10.0 cs
223267 0.414 0.64 wcs
223268 0.074 0.15 wcs
223269 0.054 0.22 30.0 cs
223270 1.141 1.67 wcs
223271 0.062 0.11 wcs
223272 0.114 0.34 15.0 cs
223273 0.031 0.35 25.0 cs
223274 0.714 1.09 wcs
223275 0.308 0.54 15.0 cs
223276 0.184 0.67 wcs
223277 0.559 0.26 wcs

Mr. Phil Brown, P.Geo; a Qualified Person under the NI 43-101 guidelines has visited the Property, reviewed the assay maps and reports, and the gold Geochem anomaly coincident with an E.M. conductor, striking for a distance of 4,000+ feet on the Property. Phil Brown confirms that all the above assays are relevant information, and when viewed as a whole, indicate the high grade potential of the Uncle Sam Property, and that he has reviewed and approved the technical contents in this press release.

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

45,848,710 SHARES ISSUED

Oct. 11, 2006 Close: $0.085

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
    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)