Millstream Mines Ltd.
TSX VENTURE : MLM

Millstream Mines Ltd.

June 01, 2006 16:22 ET

Millstream Mines Ltd.: Koval Surface Gold Showings Confirmed

TORONTO, ONTARIO--(CCNMatthews - June 1, 2006) - Millstream Mines Ltd. (TSX VENTURE:MLM) wishes to announce that its exploration crew headed by consultant Phil Brown, P. Geo., upon completing the reconnaissance and ground geological investigations has returned from the company's Koval gold Property. Phil Brown qualified person (QP) per NI 43-101 reports visible gold was encountered in trenches on Vein #1 confirming the indications of past reports.

The past winter diamond drill hole collars, surface veins #1 & #2, and the surface control grid locations have been re-confirmed by GPS readings. Geochem surveys and surface samples were taken at strategic positions with 40 samples being sent for assay to Swastika Laboratories.

The location of the Koval Property is approximately ten (10) miles east of Savant Lake, Ontario, a rail centre on the CN line, and about five (5) miles south of that point, at the northeast arm of Sturgeon Lake. The Koval Property consists of a total of 27 contiguous mining claim units comprised of 3 optioned leased mining claim units and 24 staked claim units. The staked claims are held by Millstream Mines Ltd. The leased claim units are optioned by Millstream Mines Ltd. and bear a 1.5% net smelter return (NSR) royalty.

Past Highlights From The Property

The Koval property, aside from Millstream's recent winter program, has essentially remained idle since September 1935. Prior to 1934, shallow surface trenching, pit excavating, sampling and geological investigating occurred. During 1934 to September 1935 extensive exploration was carried out on the known main surface vein over a strike length of 1100 ft., including the sinking of a shaft and the construction of lateral exploration drifts on a 125 foot level and a 250 foot level confirming its downward continuity.

According to historical reports, from the surface main vein, a bulk sample was taken over 159 feet at an average width of 2.11 ft. The sample consisted of 12 tons and was sent to the Department of Mines, Ottawa, for a mill test. The sample returned an assay of 0.455 ozs of gold per ton. In sinking the shaft, the vein was intersected at a depth of 205 feet, where it dipped into the shaft. A bulk sample in the shaft, over a vertical depth of 8 feet and a width of 33 inches, returned 0.83 ozs per ton gold. The ore continued in the shaft until the 250 ft. level was reached. Drifting to the south from the shaft shows that the shearing is a great deal more pronounced on this level (the 250 ft.) than on the level above, with commercial values having been found over a width of 44 inches. A drift was driven to the north which picked up the vein north of the shaft. The vein averaged 3 feet in width and free gold was found along it for a distance of 60 feet.

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

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May 31, 2006 Close: $0.14

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)
    info@millstreammines.com
    www.millstreammines.com