Millstream Mines Ltd.
TSX VENTURE : MLM
FRANKFURT : NJD

Millstream Mines Ltd.

December 29, 2008 13:18 ET

Millstream Provides Update of its Airport and Airport East Properties

TORONTO, ONTARIO--(Marketwire - Dec. 29, 2008) - Millstream Mines Ltd. (TSX VENTURE:MLM)(FRANKFURT:NJD) is pleased to report that it has completed the preliminary analyses of the geophysics and diamond drilling programs started in late 2007 and continuing into 2008 on its two (2) Sudbury area properties.

The two (2) properties abut each other forming a contiguous block of mining claims. The Airport property, consisting of 36 mining claim units, is located in the Falconbridge Township with the Airport East property, consisting of 127 mining claim units, located in the Falconbridge and Street Townships (abutting the east boundaries of the Airport property), Sudbury Mining District, northern Ontario, Canada.

The 2007 targeted site located at the abutting boundaries of the two properties was identified by gravity and induced polarization geophysical surveys concluded in 2003. The program entailed five (5) diamond drill holes: MAE-07-01 (L3+00S-21+00E, Az 270 deg, Dip -70 deg, EOH 500m), MAE-07-02 (L3+00S-21+00E, Az 090 deg, Dip -45 deg, EOH 401m), MAE-07-03 (L3+16S-21+04E, Az 225 deg, Dip -60 deg, EOH 413m), MAE-07-04 (L3+00S-20+00E, Az N/A deg, Dip -90 deg, EOH 503m), and MAE-07-05 (L8+00N-15+25E, Az N/A deg, Dip -90 deg, EOH 500m), with follow-up downhole geophysical E.M. surveys (PR Nov 12, 2007). Drill holes MAE -07-01, MAE -07-03, MAE -07-04 and MAE -07-05 were downhole pulsed with inconclusive results. A review in 2008 of the drill core logs and visual inspection identified mineralized sections that warranted splitting, sampling and sending for assay to Swastika Laboratories. The multi-element assay results showed anomalous values of copper, cobalt, nickel, palladium and other minerals.

The re-surveying of the drill collars established that drill hole MAE-07-05 was collared on the west side of the boundary within the Airport Property, with the other four (4) drill holes on the Airport East property.

The 2008 targeted site located in the Street Township of the Airport East property was identified by a copper geochemical survey and an airborne E.M. survey done in the 1980s and supported with recent ground magnetic and induced polarization geophysical surveys (PR Feb 5, 2008). The program consisted of five (5) diamond drill holes: MAE-08-01 (L3+00E-0+50S, Az 360 deg, Dip -50 deg, EOH 300m), MAE-08-02 (L3+00E-1+00N, Az 360 deg, Dip -55 deg, EOH 280m), MAE-08-03 (L3+00E- 3+50N, Az 360 deg, Dip -52 deg, EOH 144m), MAE-08-04 (L4+00E- 6+70N, Az 360 deg, Dip -60 deg, EOH 339m), and MAE-08-05 (L4+00E-6+70N, Az 040 deg, Dip -70 deg, EOH 441m), drilled to test the identified anomalies. No downhole E.M. surveys were carried out on these holes as of this date. Again, a review of the drill core logs and visual inspection identified mineralized sections that warranted splitting, sampling and sending for assay to Swastika Laboratories. The assay results also showed anomalous values of copper, cobalt, nickel, palladium, and other minerals.

Management with consultants Phil A. Brown, P. Geo. (designated QP for the properties) and Ron Blais, P. Eng. conclude from the results of the above work that both areas require further investigation in an attempt to locate the possible source of the mineralization. This may include deeper penetrating drill holes with downhole geophysics and interpretations by the company's geologists and consultants.

Phil A. Brown, P. Geo., geological consultant to Millstream, is the Qualified Person as described in National Instrument 43-101 for the Airport and Airport East Projects. He has reviewed this report and press release with company management.

About Millstream Mines Ltd.:

Millstream Mines Ltd. is a Canadian-based mineral exploration company whose principle objective is to enhance and develop known mineral properties to production potential. The Company has projects in the Province of Ontario, Canada and in the State of Montana, USA. The past producing Potter Mine Property is host to copper-zinc-cobalt "stacked" mineralized zones located in the highly prolific Abitibi Greenstone Belt and more specifically in the Kidd-Munro Assemblage near the town of Matheson in north eastern Ontario. A recently published initial NI 43-101 compliant resource estimate on the Potter revealed an indicated resource of 3,028,767 tonnes at 1.45% copper, 1.19% zinc, 389.7 ppm cobalt, 11.1 ppm silver, and 127.5 ppb gold along with an inferred resource of 2,071,101 tonnes at 1.08 % copper, 1.05 % zinc, 301.4 ppm cobalt, 8.7 ppm silver, and 81.7 ppb gold. The Tamarack Gold Property, a high grade former gold producer in the Tobacco Root Mountains of south western Montana, is in an advanced stage of underground exploration and development operating under the Small Mines Exclusion Act of the State of Montana.

Millstream seeks safe harbour with regard to forward looking statements.

64,051,707 SHARES ISSUED

Dec. 24, '08 Close: $0.04

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

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