Mineral Mountain Resources Ltd.

Mineral Mountain Resources Ltd.

October 26, 2010 07:00 ET

Mineral Mountain Assumes Benton's Golden Harp Option (Block A); Solidifies Major Property Interests in the Shining Tree Gold Camp

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2010) - Mineral Mountain Resources Ltd. (TSX VENTURE:MMV) ("Company") is pleased to report that the Company and Benton Resources Corp. (BTC.TSX-V) ("Benton"), a public company based in Thunder Bay, Ontario have signed a Letter of Intent which grants the Company the exclusive right to assume all of the remaining rights and obligations, subject to a 1% NSR, to the Option Agreement between Benton and Golden Harp Resources Inc. (GHR.TSX-V) (news release dated March 12, 2009) in Golden Harp's 351 claim unit Copper Hill Block A ("the Property"). Under the terms set out in the Option Agreement, Benton is to pay Golden Harp $75,000 cash, issue Golden Harp 550,000 shares and spend a total of $2 million prior to March 2012 to earn a 60% interest in the Property and spend an additional $1 million by March 2014 to earn an additional 10% interest in the Property. To date, Benton has spent approximately $1.2 million, issued 300,000 shares and made cash payments to Golden Harp totalling $50,000.

The Copper Hill Block A gold property is strategically located 6 km due west of the new Minto gold discovery where, in a news release dated August 9, 2010, Creso Exploration Inc. (CXT.TSX-V) reported three impressive high grade gold drill intersections of 82.5 metres of 13.3 grams per tonne Au, 65.7 metres of 18.2 grams per tonne Au and 79.6 metres of 4.61 grams per tonne Au (drill hole MC-09-01) in the Shining Tree area about.100 km south of Timmins, Ontario. 

For the Company to assume all the rights and obligations of Benton's Block A Copper Hill option agreement, it is required to grant Benton a 1% NSR over the interest Mineral Mountain acquires in the Property and issue Benton a total of eight (8) million common shares (approximately 17.2% of the current issued and outstanding common shares of Mineral Mountain)of the Company to be issued in the following three tranches:

  •  Share Issuances-
    • 4,000,000 common shares on approval of this LOI by the TSX Exchange;
    • A further 2,000,000 common shares of Mineral Mountain within 12 months of the Agreement date;
    • A final 2,000,000 common shares of Mineral Mountain within 18 months of the Agreement Date.

Upon Mineral Mountain having met all the remaining option requirements and obligations as set out in the Golden Harp Option Agreement and having issued the 8 million common shares to Benton then Mineral Mountain will have earned an undivided 60% (or 70% if Mineral Mountain so elects under the terms of the Golden Harp Option Agreement) participating interest in the Property, subject to certain underlying NSR royalties applicable to certain claims comprising the Property plus the 1% NSR to be issued to Benton.

Once Mineral Mountain has earned its interest in the Property (either a 60% interest or a 70% interest) the Company and Golden Harp will enter a joint venture for the future development of the Property with Mineral Mountain acting as the initial operator. In the event that either party's participating interest is reduced to 10%, its interest shall be converted to a 1% NSR over those claims comprising the Property that are not already subject to an NSR.

Block A's Impressive Gold Potential

  • Cook Zone:
    • Gold mineralization in the Cook Zone is associated with a swarm of felsic porphyry dikes intruded in brecciated calc-alkalic volcanic rocks, a similar geological setting to Creso's Minto Deposit 6 km due east. Like the MC Zone, the Cook Zone occurs proximal to the Tyrrell Shear Zone, a regional break similar to the Destor-Porcupine and Cadillac Breaks. Recent shallow drilling by Benton recorded to following impressive high grade gold intervals:
      • GH09-01: 5.03 gpt Au over 8.5m
      • GH09-06: 21.41 gpt Au over 3.0m
      • GH09-02: 11.9 gpt Au over 5.5m
    • The Cook Zone has above average potential to define an economic gold resource. Definition drill program is planned to test this new discovery along strike and to depth.

  • MC Gold Zone:
    • Represents a new, partially defined gold zone discovered by Golden Harp in 2008 and confirmed more recently by Benton. This zone is associated with the western extension of the Tyrrell Shear Zone, which hosts the Juby Deposit (Temex Resources Corp. TME.TSX-V) and the Big Dome zone (Goldeye Exploration Inc. GGY.TSX-V). The MC Zone occurs within altered and mineralized stratigraphy over 300 meters wide with above average near-surface bulk tonnage gold potential with higher grade mineralization intersected at depth. Geologically, the gold mineralization is associated with green carbonates similar to the host rocks at the Kerr-Addison Mine along the Cadillac Break:
      • GH-025: 0.90 gpt Au over 43.75m; including 1.96 gpt Au over 10m
      • GH-019: 4.50 gpt Au over 7m
      • GH-018: 0.43 gpt Au over 61.80m
    • The MC Zone has only been drill tested near surface and is open in all directions and requires definition drilling to evaluate its gold potential

Nelson W. Baker, the Company's President and CEO, commented: "We view Block A as a vital part of our gold portfolio making us one of the key explorers in this exciting emerging gold district!"

The Letter of Intent is subject to TSX Exchange approval. Wally Rayner, P.Geo., the Company's Vice President of Exploration has verified the technical contents in this release and is the qualified person for this project. 

About Mineral Mountain 

Mineral Mountain is a well-funded explorer and developer of precious metals with approximately $4 million in its treasury and a particular focus on gold, silver and base metals. The Company has now identified four major gold projects that meet the Company's long term objectives. In south eastern British Columbia, the Company's 100%-owned 89,000-hectare flagship Kootenay Arc Project is believed to have a geological environment that could host hypogene, sediment- hosted precious metal deposits similar to those found in the Carlin Trend of Nevada and in the Selwyn Basin of Yukon. The 145 km² Golden Harp Main Block (60%) and Block A (70%) options in the emerging Shining Tree mining camp host drill ready gold targets with both bulk tonnage and high grade mineralization and, finally, the recently acquired Straw Lake Beach Mine Property offers great potential to host a Hemlo-style gold deposit..


Nelson W. Baker, President and CEO

This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward looking statements. Forward looking statements are 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 statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that cause the actual results to differ materially from those in forward-looking statements 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 statements 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 those forward-looking statements 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.

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

Contact Information