Millstream Mines Ltd.
TSX VENTURE : MLM
FRANKFURT : NJD

Millstream Mines Ltd.

June 14, 2007 09:00 ET

Millstream Intersects Significant Mineralization in Drill Hole S07-07

TORONTO, ONTARIO--(Marketwire - June 14, 2007) - Millstream Mines Ltd. (TSX VENTURE:MLM)(FRANKFURT:NJD) is pleased to announce that to report that it has received back significant assay results from diamond drill hole, S07-07, at its Potter VMS Property's 2006-07 exploration program. The results from the hole are outlined below:



Hole No. From To Core Length Cu Zn Co Ag
(metres) (metres) (%) (%) (%) (g/T)
S-07-07
1st Interval 552.0 556.0 4.0 0.108 1.426 0.0633 1.525

Including 552.0 554.0 2.0 0.084 2.185 0.0525 1.05

2nd Interval 582.0 586.0 4.0 1.064 0.049 0.0297 2.72

3rd Interval 593.0 597.0 4.0 1.024 0.0153 0.0295 2.25

GOLD ASSAYS NOT INCLUDED; ALL ASSAYS OBTAINED FROM SWASTIKA LABS


The above 3 intervals were contained within a larger mineralized zone measuring 47 metres in core length grading 0.456% Copper, 0.1492% Zinc, .0152% Cobalt and 1.66 grams/ton silver.

Millstream management is of the belief that it is important that the investing public understand the history of Potter mining operations as it relates to the enhanced potential of this "stacked" VMS property. The following sequence of events is an outline of the Potter Mine project's history. As one reads the account it is important to keep in mind that in recent drilling, Millstream has discovered new zones to the north and south of the east-west trending past mine workings.

During the copper boom of the late 1920's, a shaft 30 feet deep was sunk which intersected sulphides grading 1 to 2% copper. However, the mineralization had limited length. Follow-up assessment work led to approximately 40,000 ft. (12,191 m) of diamond drilling. In 1957, a three compartment shaft was sunk to 408 feet (124.35 m). A crosscut was driven on the 350 foot (106.67 m) level. In May 1962, a proposal was made to move Thorncliffe Mines' milling plant located in Garrison Township to the mine property.

By June, l965, the shaft was deepened to 630 feet and two new levels opened at 350 and 600 foot depths (Canad. Mines Handbook, l965). In February, 1966 the mine was renamed Munro Copper Mines Limited. The mine began to produce copper in 1967. In the same year the shaft was extended to 970 feet, opening 6 levels with the deepest at 850 feet. The mill started production in April of the same year at a rated capacity of 700 tons/day. The mine experienced financial difficulties in the latter part of 1967 and went into receivership shortly after. In June 1968, property and assets were put up for sale.

In early 1969, Patrick Harrison and Company Limited, a secured creditor and shareholder, purchased the property and facilities. The mine was renamed the Potter mine at this time. The deposit was high-graded for copper and the zinc, due to its low commodity price, was not recovered and remains in the tailings. Mining was done strictly on a salvage basis with a minimum of exploration carried out. Drilling was executed down dip in order to ensure the continuity of the zone being mined. Lateral drilling to explore for parallel structures was simply not done. In August 1972, Harrison, having recovered much of their money and faced with the prospect of $0.40 per lb. copper and $0.05 per lb. zinc prices, decided to close down the mine which remains idle to this day. The mine is presently full of water. Much of the mill equipment was sold to Noranda Ltd. in 1975.

Between 1967 and 1972, 477,572 tons of ore were milled. The average grade of the ore milled was 1.63% copper and 1.5% zinc with 0.1 - 0.5 oz. Ag per ton and traces of gold.

After 1972, The property largely remained idle until Millstream Mines Ltd., between the years of 1995 to 2001, conducted many different exploration programs including line cutting, ground geophysical surveys, geological surveys, geochemical orientation surveys and associated petrographic studies, along with surface diamond drilling programs totalling 17,300 metres drilled in 37 holes. The highlights of the drilling activity are:



Hole No. From To Core Cu Zn Co Ag
S97-08A
1st Interval 482.40 483.90 1.50 3.62 3.19 0.136 0.86
2nd Interval 491.86 494.40 2.54 2.33 9.09 0.073 1.08
3rd Interval 504.20 506.20 2.00 6.00 4.37 0.082 1.91
4th Interval 537.40 543.70 6.30 2.32 3.14 0.000 0.12

S97-09
Interval 604.60 627.50 22.90 2.65 2.70 0.080 0.76

including 613.60 623.00 9.40 3.86 4.57 0.128 1.153

S98-01
1st Interval 695.15 702.90 7.75 5.34 3.24 0.067 1.16

including 695.15 700.40 5.25 7.81 4.76 0.096 1.69

2nd Interval 773.50 776.50 3.00 2.17 3.90 0.047 0.46

including 774.35 776.50 2.15 2.95 5.42 0.053 0.61

S98-05
1st Interval 420.12 423.75 3.63 2.69 0.29 0.079 0.49

2nd Interval 507.40 519.70 12.30 1.53 2.05 0.131 0.42

including 513.00 519.70 6.70 2.14 2.47 0.174 0.58
including 515.00 519.70 4.70 2.54 3.38 0.168 0.70

S98-06
1st Interval 653.90 680.66 26.76 2.57 1.68 0.082 0.61

including 653.96 665.50 11.60 4.34 2.18 0.122 0.94
including 656.90 663.49 9.59 5.01 2.63 0.131 1.09

2nd Interval 696.62 705.30 8.68 3.39 0.80 0.071 0.67

including 696.62 703.00 6.38 4.46 1.06 0.094 0.89

Hole No. From To Core Cu Zn Co Ag
(metres)
S99-01A
4th Interval 1171.9 1179.72 7.82 1.96 3.18 0.085 0.53

including 1171.9 1176.4 4.50 1.98 4.55 0.098 0.61
including 1171.9 1175.2 3.30 2.19 5.96 0.116 0.71

3rd Interval 1165.2 1166.2 1.00 1.26 1.18 0.036 0.29
2nd Interval 1161.0 1162.0 1.00 1.71 0.46 0.037 0.34
1st Interval 1158.4 1159.95 1.55 2.11 1.40 0.093 0.50

GOLD ASSAYS NOT INCLUDED; ALL ASSAYS OBTAINED FROM SWASTIKA LABS


In 2006, Millstream management along with the help of its consultant, Mr. Dave Gamble, P.Geo, elected to structure a program to commence with a surface diamond drill program to further enhance the area from a vertical depth of 1100 ft. (335.26 m) to 1800 ft. (548.6 m) below the past mine workings in order to establish a more comprehensive configuration of the stacked mineralized zones.



The highlights from the recent drilling activity are as follows:

Hole No. From To Core Cu Zn Co Ag
(metres) Length (%) (%) (%) (oz/T)
(metres)
S-07-06
Interval 641.70 648.40 6.70 2.16 1.48 0.043 0.49

Including 642.20 646.20 4.00 3.42 2.46 0.068 0.72
Including 644.70 645.20 0.50 6.68 13.18 0.097 1.09

S-07-04
1st. Interval 628.20 637.35 9.15 1.50 1.44 0.059 0.49

Including 632.00 637.35 5.35 2.07 2.43 0.073 0.67

2nd. Interval 674.45 684.60 10.15 2.65 2.89 0.099 0.69

Including 674.45 683.60 9.15 2.93 3.20 0.109 0.76
Including 674.45 675.00 0.55 0.37 14.18 0.038 0.32
Including 675.00 675.50 0.50 5.03 1.47 0.058 1.21

3rd Interval 724.35 750.50 26.15 1.96 1.55 0.050 0.44

Including 724.35 747.50 23.15 2.04 1.74 0.052 0.46
Including 724.35 734.90 10.55 2.72 2.33 0.059 0.65

S-07-02
1st. Interval 478.05 485.5 7.45 3.34 2.34 0.092 1.02

Including 478.05 483.05 5.00 4.82 3.43 0.191 1.46
Including 478.05 478.75 0.70 15.10 2.54 0.165 4.61
Including 479.60 480.0 0.40 1.15 14.70 0.047 0.71

2nd. Interval 503.20 505.5 2.30 1.18 0.91 0.046 0.38

S-07-01
1st. Interval 477.75 505.0 27.25 1.68 2.39 0.011 0.73

Including 486.15 505.0 18.85 2.40 3.28 0.039 1.02
Including 495.80 505.0 9.20 3.68 5.03 0.052 1.51
Including 495.80 502.3 6.50 3.70 6.13 0.050 1.46

2nd. Interval 527.60 530.1 2.50 1.45 3.29 0.054 0.36

S-06-01
1st. Interval passed through open mined stope, hit a section of
the its sill (floor)
388.00 389.2 1.20 4.67 2.41 0.149 0.87

2nd. Interval 439.90 466.1 26.20 1.57 1.22 0.047 0.47

including 448.65 466.1 17.45 2.09 1.64 0.049 0.57
Including 453.50 466.1 12.60 2.26 1.94 0.046 0.61
Including 459.80 466.1 6.30 2.57 3.07 0.053 0.66

GOLD ASSAYS NOT INCLUDED; ALL ASSAYS OBTAINED FROM SWASTIKA LABS


The Potter copper-zinc volcanic hosted massive sulphide deposit is located in the Kidd-Munro (KM) Assemblage of the Abitibi Greenstone Belt (AGB) in Ontario near the town of Matheson. The AGB, a subprovince in the Archean Superior Province is the world's largest Archean greenstone belt covering an area in excess of 100,000 sq. km. The Millstream Mines Limited 100% wholly owned property consists of 16 patented mining claims, 12 leased mining claims and 10 optioned mining claims. The land package of 38 claim units covers 1520 acres or 608 hectares.

The Kidd-Munro (KM) assemblage is well known for the excellent classic komatiite exposures at Pyke Hill (located on the Potter Property) in Munro Township and also for the world class volcanogenic massive sulphide base metal deposit at Kidd Creek. The KM assemblage, 2717-2710 Ma, contains regionally extensive komatiites and is one of the most ultramafic-rich volcanic successions of any age in the world.

Millstream continues drilling to further explore this potentially rich volcanogenic massive sulphide (VMS) type deposit at its Potter Property. It is the company's ambition to fulfill drilling requirements necessary to estimate a NI 43-101 compliant resource. The past producing property is host to copper-zinc-cobalt "stacked" mineralized zones.

Sample preparation and analyses for this release were conducted by Swastika Labs in Swastika, Ontario on split drill core supplied by Millstream. Standards were inserted in the sample sequences with check assays and re-run's routinely conducted. Dave Gamble, P.Geo. and Edward Bettiol, P. Eng, both consultant geologists of Millstream, are the Qualified Persons as described in National Instrument 43-101 for the Potter Mine Project. They have reviewed this report and press release with company management.

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.

60,527,540 SHARES ISSUED

June 13, '07 Close: $0.47

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

Contact Information

  • Millstream Mines Ltd.
    Mr. Ernest Harrison, EM
    CEO
    (705) 474-7282
    (705) 474-5491 (FAX)
    or
    Millstream Mines Ltd.
    Mr. Marty Martinello, B.A.
    V.P.
    (705) 474-7282
    (705) 474-5491 (FAX)
    or
    Millstream Mines Ltd.
    Mr. Robert Chase, B.A.
    CFO
    (416) 368-9595
    (416) 368-6827 (FAX)
    Email: info@millstreammines.com
    Website: www.millstreammines.com