VANCOUVER , Oct. 11, 2019 /CNW/ - Mineral Mountain Resources Ltd. and Mineral Mountain Resources (SD) Inc. ("Mineral Mountain" or the "Company") (TSXV: "MMV") is pleased to announce that the 1600 m "trunk hole", ST19-011, designed to test two historical high grade gold zones, previously announced in a news release dated September 17, 2019 , is progressing as planned and on target. Major Drilling , experienced leaders in the use of directional drilling technology are the contractors selected to complete this 4,000 m drill program to target historic high grade gold intersections and to extend the gold mineralization recorded in the Company's Phase 1 program completed in 2018 along the East Limb Shear Structure in iron formation. Only the initial 450 m plunge length of the structure was drill tested and confirming Homestake-style gold mineralization. Historic intersections along the East Limb Structure, which hosts the Standby Mine, include BLG-UG3= 24.0 m @ 3.36 g/t Au down plunge from the historic mine workings and SM87-3A= 3.10 m @ 10.29 g/t Au intersected 1800 m down plunge along the structure. The major benefits to employing directional drilling technology is that it enables the Company to dramatically lower overall drill costs by utilizing shorter directional offsets from a deep "trunk hole" to test the gold bearing structure along plunge rather than drilling each hole from surface, provides quicker turn-around for assays because of the reduced meter necessary to effect multiple penetrations of the mineralized zone and, importantly reduces the local environmental impact by utilizing fewer drill sites.
After the completion of hole ST10-011, the hole will be probed geophysically with "state of the art" BHEM technology. This technology has the capability to see up to 400 m off hole along the mineralized structure down plunge towards the high-grade gold zone. This BHEM can also see localized conductive responses directly associated with highly sulfidic gold mineralization.
Scope of Directional Drill Program
A "trunk hole" of up to 1600 meters in length will be directed down the plunge of the East Limb Structure using directional drilling technology towards two separate historic gold zones, Target 1 (shallower) and Target 2 (deepest), that are about 750 m apart. Several shorter off set holes will then be drilled between the two targets, including above and below Targets 1 and 2, to more thoroughly explore the East Limb Structure (see schematic cross section posted on the Company's website www.mineralmtn.com.)
The Standby Target -Thickened Iron Formation Cut by a Regional Deformation Zone
The Standby Mine, a turn of the 20th century producer, is situated 16 miles (25 km) south of the Homestake Gold Mine, the largest iron-formation-hosted gold deposit in the world, having produced over 40 million ounces of gold over its 125 year history at an average historical reserve grade of approximately 0.27 opt (8.38 g/t Au).
The Standby Target is situated in the northern portion of the 5 mile long (8 km) Standby-Bloody Gulch-Lookout Trend, and represents the southern extension of the Homestake Corridor, which comprises tightly folded and thickened iron formation, the gold-host rock, cut by numerous major northwest trending, steep, mineralized structures. Based on 3D modelling of the Company's 2013 airborne magnetics, surface geological mapping and the control provided by several historic deep hole arrays completed by Homestake Mining in 1986-87, The Standby Target Trend alone is of sufficient scale (i.e. multi-kilometer plunge length of structurally thickened iron formation) to host a major gold ore-bearing structure on the scale of the Homestake 9-Ledge, without even considering the numerous other major structural trends within gold bearing iron formation present on Mineral Mountain's 30 sq. km Rochford District land package.
Drilling to date by Mineral Mountain has partially defined a gold-bearing, arsenopyrite-pyrrhotite mineralized, near-vertical shear zone in iron formation, approximately 30 m wide, striking 129 degrees Azimuth, in structurally thickened iron formation which comprises a tight isoclinal, steeply dipping closed anticlinal structure forming the eastern limb of the Standby Syncline. This structure, the East Limb Structure, has been traced for over 400 meters to date in the Company's 2018 drilling, and the Company's database confirms that this gold mineralization also continues through a number of deep drill holes up to 1.8 kilometers down-plunge that were drilled by Homestake Mining in 1986-87. In 1987, Homestake drilled SM87-3A which intersected 3.1 m @ 10.29 g/t Au at about 1800 m down plunge. As one example from this trend to date, MMV drill hole ST18-006 intersected 2.12 g/t Au over 20 meters, including 4.39 g/t Au over 2.5 m and 5.24 g/t Au over 1.5 m , 230m below surface. This drill hole is 50m down plunge of historical drill hole BLG-UG3 which graded 3.36 g/t Au over 24 meters. The ST18-006 intersection occurs within a 34 m wide classic Homestake-style quartz vein-hydrothermal chlorite breccia with quartz flooding, 3-15% coarse-grained arsenopyrite and 3-7% pyrrhotite, within the host iron formation.
Mineral Mountain Closes Final Tranche of Private Placement
Mineral Mountain is pleased to announce that subject to acceptance for filing of the final documentation by the TSX Venture Exchange ("TSX-V"), it has closed the final tranche of its non-brokered unit ("Unit") private placement (the "Private Placement") announced previously on August 30, 2019 and has issued 16,060,868 units of the Company ("Units") at a price of C$0.15 per Unit to raise gross proceeds of CDN$2,409,130.20 . Each Unit consists of one common share of the Company and one common share purchase warrant (a "Warrant"), with each Warrant entitling the holder to purchase one common share of the Company (a "Warrant Share") for a period of one (1) year from closing at an exercise price of C$0.25 per Warrant Share.
A finder's fee of 7% was paid to arm's length third parties on a portion of the Private Placement.
The net proceeds raised from the Private Placement are intended to be used to fund the 4,000 m program outlined above, and, for corporate and general working capital purposes.
The securities issued pursuant to the Private Placement are subject to applicable statutory resale restrictions, including a hold period expiring on February 12, 2020 pursuant to applicable Canadian securities laws.
The Company also announces that, pursuant to its stock option incentive plan, it has granted to directors and officers of the Company incentive stock options to purchase 1,575,000 shares at CDN $0.175 with an expiry date of 5 years from the date of the grant.
On Behalf of the Board of Directors
MINERAL MOUNTAIN RESOURCES LTD.
"Nelson W. Baker", President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward looking information
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.
SOURCE Mineral Mountain Resources Ltd.
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