Mineral Mountain Resources Ltd.
TSX VENTURE : MMV

Mineral Mountain Resources Ltd.

March 07, 2011 07:00 ET

Mineral Mountain Increases Its Straw Lake Holdings, Purchases 4 Patented Mineral Claims, Now Controls 4448 Hectares in Prospective Gold District

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2011) - Mineral Mountain Resources Ltd. (TSX VENTURE:MMV) -

Highlights:

  • The 4 patented mineral claims straddle the western extension of the Straw Lake Beach Gold Mine horizon.
  • Mineral Mountain now controls a prominent gold district measuring 4 km by 11 km in size.
  • Grid line cutting and base camp building commencing immediately.

Mineral Mountain Resources Ltd. ("Mineral Mountain" or the "Company") is pleased to announce that Mineral Mountain has purchased a 100% interest in 4 patented mining claims (K3999, K4000, K4001 and K4002) totalling approximately 64 hectares (158 acres) from private owners. The newly-acquired property adjoins the original Straw Lake Beach Gold Mine patents optioned by Mineral Mountain from Shotgun Exploration (see news release dated September 28, 2010), The Straw Lake gold project is accessible by road and is located approximately 70 kilometres northeast of the Rainy River Deposit and about 60 kilometres southwest of Manitou Gold Inc.'s recently announced drill hole intersection of 53.7 kg/t Au over 0.55m in hole KW-11-26 from their Kenwest Property along the Manitou Lake Fault structure in the Kenora mining district of Ontario.

Straw Lake Area Gold Mineralization

Gold mineralization in the Straw Lake Property, which now consists of a contiguous land package totalling 4448 hectares (10,986 acres), appears in two different lithologies:

  1. Lawrence Lake Batholith:
  • Important gold concentrations with bulk tonnage potential occur within granodiorites related with lineament and fault structures that cut the intrusive rocks with associated quartz veining and pyrite. One such gold-bearing fault structure within the granodiorite is up to 2 km long.
  1. Straw Lake Mine Trend: (11 km long)
  • Gold mineralization along the mine trend is associated with pyritic quartz veins as well as with mineralized pyroclastic rocks, felsic volcanic and iron formation carrying economic grades up to 12 g/t Au. The Straw Lake Beach Mine produced 33,662 tons grading 0.34 oz/t Au between 1938 and 1941.

Nelson W. Baker, Mineral Mountain's President and CEO, commented: "The addition of these 4 mineral patents immediately west of our company's Straw Lake Beach Gold Mine shaft represents an important acquisition since the gold-bearing horizon trends through the patents."

The aggregate purchase price for the 4 mineral patents (the "Claims") to be paid by Mineral Mountain for a 100% interest in the 4 mineral patents is a total of 600,000 common shares of the Company and Cdn. $140,000 in cash payable as follows:

  • Upon signing of this Letter of Intent and approval of the transactions contemplated by this Letter of Intent by the TSX Venture Exchange ("TSXV"), Mineral Mountain will, within five business days following TSXV approval, issue a total of 300,000 common shares of Mineral Mountain and make a cash payment of $80,000; and
  • On or before the first anniversary date of this Letter of Intent, Mineral Mountain will issue an additional 300,000 common shares of Mineral Mountain and make an additional cash payment of $60,000.

The share issuances and cash payments to be divided on a pro-rata basis among the Owners based upon their ownership interest in the Claims as of the date hereof. No conveyance of Title shall occur until the total aggregate purchase price as described above has been paid.

The Owners have retained a 3% net smelter royalty, one-half of which may be repurchased by Mineral Mountain for Cdn. $1,500,000 million.

About Mineral Mountain

Mineral Mountain is a well-funded explorer and developer of precious metals with approximately $8 million in its treasury. The Company has three major gold projects that meet Mineral Mountain's long term objectives of becoming a strong mid-tier resource producer.

MINERAL MOUNTAIN RESOURCES LTD.

Nelson W. Baker, President and CEO

To be added to Whetstone's private email list, please contact info@whetstoneminerals.com.

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