Mineral Mountain Resources Ltd.
TSX VENTURE : MMV
OTCQX : MNRLF

Mineral Mountain Resources Ltd.

November 28, 2012 07:30 ET

Mineral Mountain Announces First High Grade Drill Results From the Bismarck Mine, Holy Terror Project, South Dakota, USA

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2012) - Mineral Mountain Resources Ltd. (TSX VENTURE:MMV)(OTCQX:MNRLF) -

HIGHLIGHTS:

  • Initial drilling at Bismarck Mine confirms historical high grade gold zones
  • HT-12-006: 11.40 g/t (0.33 oz/t) Au over 8.00m including 17.07 g/t (0.50 oz/t) Au over 5.00m
  • HT-12-003: 10.02 g/t Au (0.29 oz/t) Au over 3.90m
  • HT-12-002: 4.95 g/t (0.14 oz/t) Au over 10.59m including 7.14 g/t (0.21 oz/t) Au over 4.82m
  • New gold horizons identified: HT-12-003: 4.02 g/t (0.12 oz/t) Au over 10.02m, including 6.53 g/t (0.19 oz/t) Au over 1.82m:
  • Presently drill tested to 120m vertical depth - zones remain open

Mineral Mountain Resources Ltd. ("Mineral Mountain" or the "Company") and its joint venture partner the Holy Terror Mining Company ("Holy Terror Mining") are pleased to announce initial drilling results from the ongoing Phase I exploratory and confirmation diamond drilling program at the Bismarck Mine at the Holy Terror Project ("HTP") located 55 kilometres southwest of the formerly producing Homestake Mine in South Dakota, USA.

Highlights from the first six drill holes at the Bismarck Mine include 11.40 g/t (0.33 oz/t) Au over 8.00m including 17.07 g/t (0.50 oz/t) Au over 5.00m, 10.02 g/t Au (0.29 oz/t) Au over 3.90m, 5.54 g/t Au (0.16 oz/t) Au over 6.92m, 4.02 g/t (0.12 oz/t) Au over 10.02m, 4.95 g/t (0.14 oz/t) Au over 10.59m including 7.14 g/t (0.21 oz/t) Au over 4.82m. Length weighted gold composites for all drill hole assays received to date are outlined in Table 1.

Discussion of Initial Drill Results

The Phase I diamond drilling program (~3,000m budgeted) is designed to not only confirm previous operators historical drill results but also to determine the potential for additional high grade gold bearing horizons beyond the limits of the known mining. Eleven drill holes totalling 1,872m were drilled from two setups in the Bismarck Mine area. Gold assays for the first six drill holes on Setup 1 (HT-12-001 through HT-12-006 inclusive) have been received and are presented in this release. Results for the remaining five Bismarck drill holes are pending.

Historical drilling by both Homestake Mining Company (1983-1988) and Energy Fuels Corporation (1993-1994) in the Bismarck area was directed at testing the near surface extension (less than 200m vertical depth) of the main Bismarck horizon. However, sampling of the core by both companies was sporadic and incomplete. By adopting the in-house policy of complete sampling of all Phase I drill core, Mineral Mountain was successful in confirming and expanding its predecessor's results as well as identifying new gold mineralization including 4.02 g/t (0.12 oz/t) Au over 10.02m, including 6.53 g/t (0.19 oz/t) Au over 1.82m. The newly identified, near surface mineralization occurs in the hanging wall approximately 60m northeast of the main Bismarck gold zone and is open in all directions. In light of this new information, the larger structural corridor that is host to the gold zones at Bismarck is now in excess of 80m wide. The true size of this corridor has yet to be determined due to the paucity of historical drilling and sampling. Additional drill testing of this new target area is being planned for Phase II.

Bismarck Mine Overview

The Bismarck Mine is but one of twelve turn of the century past producing gold mines within the extensive Holy Terror Project land holdings. Based upon historical records, the mine operated intermittently from 1904-1907 and ceased production due to lack of water for the stamp mill. Mine development includes a 425' shaft, open cut, and four levels of which only two shrinkage stopes on the 100' level were mined. Gold mineralization at the Bismarck occurs in well-defined brittle-ductile shear zones, often close to bodies of intrusive gabbro, and, where major fault systems have intersected schistose pelitic sediments, conglomerates, and, most importantly sulphide-facies iron formation which was a critical host rock for ores at the Homestake Mine.

Exploration Update

Eleven (11) diamond drill holes have been completed at the Bismarck Mine area from two drill setups totaling 1,872m. The drill has been relocated to the eastern portion of the property and is currently testing the Bullion, Keystone and Holy Terror Mines, which occur on three regional, parallel gold structures within a 400m wide corridor. The Company currently has permits in place from the South Dakota Department of Environment and Natural Resources (DENR), to drill 400 diamond drill holes.

Commentary

Nelson W. Baker, President and CEO of Mineral Mountain Resources comments:

"These first drill results from the Phase I program at the Bismarck Mine are truly exciting. Not only did the drilling demonstrate robust grades and widths potentially amenable to underground mining methods, but more importantly the exceptional exploration potential of the entire gold system in the Keystone area which we have just begun to explore. The Holy Terror Project, with its numerous former high grade gold producers, discontinuous exploration history, incredible infrastructure and scarcity of historical drilling is one of the most unique exploration opportunities that I have witnessed in my 43 year career. This is only the first of four past producing mines that we intend to assess in this preliminary round of drilling."

Table 1: Length-weighted drill hole gold composites for Bismarck Mine Area (Drill Setup 1). Gold assay top cutting has not been applied. Drill hole intersections do not represent true widths, there is insufficient drilling on these zones to determine the true width of the drill hole intercepts at this time.
Drill hole From
(m)
To
(m)
Core
Length
(m)
Au
(g/t)
Au
(oz/t)
Vertical
Depth
(m)
Comment
HT-12-001 18.41 25.33 6.92 5.54 0.16 18 Bismarck Main Zone
INCLUDING 22.36 25.33 2.97 7.02 0.20 18 Bismarck Main Zone
HT-12-002 15.75 26.34 10.59 4.95 0.14 15 Bismarck Main Zone
INCLUDING 17.07 21.89 4.82 7.14 0.21 15 Bismarck Main Zone
HT-12-003 26.58 30.48 3.90 10.02 0.29 23 Bismarck Main Zone
HT-12-003 35.59 36.76 1.17 4.31 0.13 30 Bismarck Main Zone
HT-12-003 69.37 70.35 0.98 5.15 0.15 57 Bismarck New Horizon
HT-12-003 84.08 85.93 1.85 10.29 0.30 70 Bismarck New Horizon
HT-12-003 102.60 112.62 10.02 4.02 0.12 88 Bismarck New Horizon
INCLUDING 104.60 105.66 1.06 7.46 0.22 86 Bismarck New Horizon
AND 107.70 108.73 1.03 8.24 0.24 89 Bismarck New Horizon
AND 110.80 112.62 1.82 6.53 0.19 92 Bismarck New Horizon
HT-12-003 123.31 124.28 0.97 6.10 0.18 101 Bismarck New Horizon
HT-12-003 143.33 144.32 0.99 5.02 0.15 118 Bismarck New Horizon
HT-12-004 112.22 113.05 0.83 9.71 0.28 77 Bismarck New Horizon
HT-12-005 13.52 21.20 7.68 4.35 0.13 14 Bismarck Main Zone
INCLUDING 13.52 17.00 3.48 6.97 0.20 12 Bismarck Main Zone
HT-12-005 26.80 28.19 1.39 4.93 0.14 22 Bismarck Main Zone
HT-12-006 7.22 15.22 8.00 11.40 0.33 7 Bismarck Main Zone
INCLUDING 7.22 12.22 5.00 17.07 0.50 7 Bismarck Main Zone
INCLUDING 8.22 11.22 3.00 24.00 0.70 7 Bismarck Main Zone

Qualified Persons

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101(NI43-101) and reviewed and approved by Nelson W. Baker, P.Eng. President and CEO of Mineral Mountain Resources Ltd. and a Qualified Person. The exploration activities at the Holy Terror Project are carried out under the supervision of N. Wally Rayner P. Geo., Vice President, Exploration and implemented by Project Manager Kevin Leonard P. Geo., both being Qualified Persons for this project.

Quality Control

Drill core samples are transported, handled and stored with chain of custody procedures. Core is sawn or split in representative halves with one half submitted to the laboratory for analysis and the second half saved for archival purposes. Typical core samples are 0.5 to 1.5 m in length. Gold (Au) assays are by 30 g fire assay with atomic absorption finish with a lower limit of 0.005 ppm and upper limit of 10 ppm. The 48 element geochemical package, including silver (Ag), uses a 4 acid digestion followed by Induced Coupled Plasma with Atomic Emission Spectrometry (ICP-AES) and Mass Spectrometry (ICP-MS), when gold values are greater than 10 ppm then the sample is re analyzed using fire assay with a gravimetric finish. All over limits are also analyzed using the screened metallic method.

The laboratory for the Holy Terror Project is ALS located in Reno Nevada. ALS is a certified laboratory that used standard reference material and duplicate sampling to ensure quality control. Mineral Mountain routinely sends a set
of 4 blind standards as well as one blank sample with every shipment of core. The results of the analysis of the standard material are continuously reviewed to ensure quality assurance.

About Mineral Mountain and the Holy Terror Project

Mineral Mountain Resources Ltd., through its wholly owned subsidiary Mineral Mountain Resources (SD) Inc., is focused on the exploration and, if warranted, development of its key asset, the Holy Terror Project in the Keystone Mining district in the southeastern part of the Black Hills of South Dakota. The Holy Terror Project is centered along the southwestern extension of the Homestake Gold Trend and covers approximately 4000 acres straddling a major gold bearing structural corridor measuring about 15 km in strike length and 1.5 km in width. The Keystone District contains historic gold mines, eight of which occur within the Holy Terror Project. Production of these mines came from early Proterozoic gold mineralization associated with iron formation, and shear zones similar to the deposits at the former Homestake gold mine which, over 120 years produced 40 million ounces of gold in the northern Black Hills. The Holy Terror Project is very well located near Rapid City where it can be easily accessed by a network of roads and has hydro-electricity and modern internet services to the drill site. As well, the area has a skilled labour force and is a low cost exploration area. South Dakota has low political risk and a jurisdiction that embraces mineral development.

A technical report prepared by SRK Consulting entitled "Technical Report for the Holy Terror Project, South Dakota, USA" dated June 20, 2012 (the technical report) is available on the Mineral Mountain website (www.mineralmtn.com) or under Mineral Mountain's profile on SEDAR (www.sedar.com).

On Behalf of the Board of Directors

MINERAL MOUNTAIN RESOURCES LTD.

Nelson W. Baker, President and CEO

Reader Advisory

This release includes certain statements that may be deemed to be "forward-looking information" under Canadian securities laws. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, constitute forward looking-information. Forward looking information consists of statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking information are based on reasonable assumptions, such information does not constitute guarantees of future performance and actual results may differ materially from those in forward-looking information. Factors that cause the actual results to differ materially from those in forward-looking information include gold prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, continued availability of capital and financing and general economic, market or business conditions. The Company cautions the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Company's forward-looking information should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct. Please see the public filings of the Company at www.sedar.com for further information.

Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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