Montana Gold Mining Company Inc.
CNSX : MGM

Montana Gold Mining Company Inc.

May 17, 2012 08:30 ET

Montana Gold Mining Company Inc.: NI 43-101 Technical Report Filed on Golden Trail Project, Elko County, Nevada

LONDON, ONTARIO--(Marketwire - May 17, 2012) - Montana Gold Mining Company Inc. ("MGM" or the "Company") (CNSX:MGM) has filed on SEDAR an NI 43-101 compliant technical report on the Company's 100% owned Golden Trail Project located in Elko County, Nevada. The report is authored by Richard C. Capps, PhD, RPG, SME Registered Geologist.

The Golden Trail Project is situated within the recently identified Eastern Nevada Gold Trend being explored and developed by Newmont Mining at their Long Canyon Project located in the Pequop Mountains, and explored by numerous junior exploration firms across Eastern Nevada. The Golden Trail claim block consists of 16 contiguous unpatented mining claims totaling about 320 acres. The claims are enclosed by a large Newmont Mining claim block staked in November 2011.

Hydrothermal precious metal vein and mineralized skarn are the primary exploration targets at the Golden Trail Project and possible sediment hosted gold is a potential target at depth. The Golden Trail mineralization is centered on a broad zone of thermal metamorphism and hydrothermal/metasomatic alteration. The alteration/mineralization is defined by rock chip geochemistry, 8,100 feet of Phase 1 drilling, gravity and magnetic surveys, petrographic and x-ray diffraction studies, and geologic mapping. The zone includes decalcified and silica replaced Paleozoic limestone and calcareous sandstone. Gold and base metal mineralization is controlled and localized along broad northwest-trending dilational zones containing numerous northwest-striking, high-angle gold-bearing veins and adjacent replacement zones all centered within a Northwest-striking calcsilicate skarn. Pre-skarn host rocks include Paleozoic limestone, siltstone, chert, sandstone and conglomerate. The largest identified vein, the Golden Trail Vein (GTV), is over 1,200 meters long, and has an associated alteration zone that averages about 30 meters wide. Gold values above 20 ppb are common within the zone and several samples above 9 grams have been taken in the central GTV area including one rock chip sample of decalcified limestone contained over 28 grams gold.

Approximately $1,394,220 has been spent on the project to date by the Company and its predecessor (Gold Reef International). An initial rock sampling program was completed in 2004 and more extensive programs were completed in subsequent years consisting of geologic mapping, rock chip geochemical surveying, and ground based gravity and magnetometer surveying. A four-hole Phase 1 drilling program was completed in 2007. A Phase 2 drilling program is recommended in the NI 43-101 Report to test for skarn, vein, and sediment hosted mineralization, including Carlin style disseminated mineralization, in the Paleozoic sedimentary units coincident with the gravity high and within structurally related zones of replacement and decalcification.

The NI 43-101 Technical Report is available on the Company website along with a new Corporate Presentation at http://www.montanagoldmining.com. The Company's Facebook site also provides information that may be of interest to shareholders at http://www.facebook.com/montanagoldmining.

An NI 43-101 Technical Report has also recently been commisssioned on the Company's 100% owned Silver Bell - St. Lawrence gold project in Montana.

Montana Gold Mining Company Inc. is a reporting issuer in good standing in the Province of Ontario whose common shares are listed on CNSX (CNSX:MGM). There are 27,381,007 common shares issued and outstanding in the capital of the Company.

This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company's ability to complete programs of exploration, update NI 43-101 technical reports, and provide ongoing shareholder information.

Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding its ability to initiate and complete future exploration work as expected. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of the Company's future exploration work, technical, safety or regulatory issues.

Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.

CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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