Metallum Resources Inc. Continues to Intersect High Grade Gold on McMillan Gold Mine Property
Metallum Resources Inc. (TSX VENTURE: MRV) (the “Company”) (formerly Young-Shannon Gold Mines, Limited) is pleased to report gold assay results of up to 24.69 g/t from continued diamond drilling completed on the Company’s McMillan Gold Mine (“McMillan”) optioned claims located near the town of Espanola in northern Ontario, Canada. Five diamond drill holes, MM-08-01 through to MM-08-05 inclusive totalling 1,682 metres (5,517 ft.) were completed during this recent campaign.
Of particular interest in this drilling program was a further evaluation of gold mineralization in the vicinity of diamond drill hole MM-05-13 where a gold zone was intersected in April, 2006 which averaged down hole grades and widths of 7.21 g/t gold over 21.3 metres including sections of 8.12 g/t gold over 4.60 metres, and 14.96 g/t gold over 8.60 metres, including 22.65 g/t gold over 4.70 metres, 27.72 g/t gold over 3.10 metres, and 35.70 g/t gold over 2.10 metres (see Young-Shannon’s Press Release of May 31, 2006).
Drill hole MM-08-05 from this recent drilling campaign tested an eastward strike extension of approximately 42 metres (137 ft.), and an up dip extension of approximately 55 metres (180 ft.) from the high grade gold mineralization intersected in drill hole MM-05-13. This mineralization was successfully detected by the down hole induced polarization (“IP”) survey completed in 2005 which also identified the targets which led to the intersections of high grade gold in drill holes MM-06-01, MM-05-05, and particularly MM-05-13.
Down hole drill core results from MM-08-05, as illustrated in the table below, show the continuity of the high grade gold zone when reviewed in context with results from drill hole MM-05-13, as well drill hole MM-06-02, from last year’s drilling campaign, which extended the gold mineralization in MM-05-13 by 160 metres (525 ft.) down dip (see Young-Shannon’s Press Release of March 1, 2007).
Highlights of this recent phase of drilling are summarized in the table below: ———————————————————— Core length Hole No. Interval Intersection Au (g/tonne) (metres) (metres) ———————————————————— MM-08-05 341.30 – 352.60 11.30 4.18 including 341.30 – 346.75 5.45 6.90 including 352.25 – 352.60 0.35 24.69 also 359.85 – 361.90 2.05 5.00 ———————————————————— Fire assays using 30 gm pulp by Swastika Laboratories Ltd., Swastika, Ontario. Blanks and standard samples are inserted for quality control and assurance.
Diamond drill holes MM-08-01 and MM-08-02 from this campaign were collared to test potential gold mineralization westward from the historic underground workings from the McMillan Mine. MM-08-01 tested a coincident IP and vertical loop electromagnetic anomaly and MM-08-02 was a down dip test of an impressive outcropping of quartz veining occurring approximately 305 m (1,000 ft.) west of the McMillan Mine shaft. Although gold occurs in both holes, no significant mineralization was intersected.
Diamond drill holes MM-08-03 and MM-08-04 from this campaign were collared from the same location with the same azimuth but with different inclinations and were designed to test the open eastward strike extent of the new high grade gold mineralization defined by the Company’s drilling campaigns in years 2005 to 2007 as well as MBMI’s campaign in 2004.
Both drill holes intersected the same zone of sheared argillites with quartz-carbonate veining and silica flooding that hosts the high grade gold mineralization on this part of the property. Drill hole MM-08-04 intersected 7.47 g/t gold over 0.5 m as well as less significant values. Drill hole MM-08-03 intersected lower grades of gold than were encountered in previous drilling in this vicinity, but it was calculated that this drill hole tested the gold zone approximately 30 m (100 ft.) up dip from the high grade values and therefore did not test the same horizon of higher gold grades as in previous drilling.
For the most part, the high grade gold values intersected by diamond drilling by the Company east of the McMillan shaft since 2005 occurs at least 100 m below the historic mine workings, and it is postulated that this gold mineralization could be an extension of the historic gold ore zone. The high grade gold values intersected in diamond drill hole MM-06-01, MM-05-05, MM-05-13, MM-05-06, MM-08-05, MM-05-01, and MM-05-02 sequentially eastward along strike defines a strike length of high grade gold mineralization of at least 600 ft. (183 m) open in both directions and continuing at depth.
Future drilling campaigns on the property will continue to evaluate this high grade zone.
Gold was first discovered on the McMillan property in the early 1920′s. Shaft sinking and underground exploration were carried out in the late 1920′s, with the shaft reaching 875 feet in depth. A 125 ton per day mill was subsequently built and operated until 1937. The mine produced 60,000 tons of ore at a recovered grade of 0.18 ounces per ton. Historical records indicate that mineralization continued below the 875 foot level, but a grade of 0.20 ounces per ton was considered uneconomic at that time. In 1985/86 the mine was dewatered and sampled underground. Sampling from different underground stopes ranged from 0.07 ounces per ton to 0.48 ounces per ton. Based on these results, a work program consisting of underground diamond drilling to determine vein continuity, and to locate areas of undeveloped gold bearing zones was recommended at that time, however, due to lack of funding, the program was not carried out. The April 2004 program of diamond drilling was based on results of the 1985/86 sampling program, and on testing geophysical targets from a 1996 Vertical Loop EM survey that may indicate extensions to the mine area.
The McMillan claims comprise 34 unpatented mining claim units in Mongowin and McKinnon townships, located approximately 14 kilometres south of the town of Espanola, Ontario on the north shore of House Lake.
The Company’s option agreement with Garson Gold Corp. was entered into in November, 2004 and enables the Company to earn a 50% interest in the McMillan property over a three year period for staged payments of $75,000 in cash and 650,000 common shares plus a three year work commitment of $950,000. Metallum has the option to increase its interest to 60% by issuing an additional 250,000 common shares and spending $400,000 more on the property.
Metallum Resources Inc. is a precious metals exploration company which holds a group of patented and unpatented claims within Chester Township located west of Highway 144 midway between Sudbury and Timmins, Ontario. It also has an option to earn a 60 % interest in the McMillan Gold Mine property, located 75 kilometres southwest of the Greater City of Sudbury. Metallum Resources Inc. has 53,803,828 common shares outstanding and is listed on the TSX Venture Exchange under the symbol MRV.
Greg Lipton, P. Geo. is the qualified person for the Company as required under National Instrument 43-101. He is a member of the Association of Professional Geoscientists of Ontario (APGO).
Further details may be obtained from our website: www.metallumresourcesinc.com.
This press release contains certain forward-looking statements. While these forward-looking statements represent our best current judgment, they are subject to a variety of risks and uncertainties that are beyond the company’s ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Contacts: Metallum Resources Inc. Greg Lipton President (416) 861-8351 (416) 867-2298 (FAX) Email: greg.lipton@youngshannon.com Website: www.metallumresourcesinc.com
SOURCE: Metallum Resources Inc.