Millstream's Potter Yields an Initial Resources Estimate of Over 3 Million Tonnes Indicated Along with Over 2 Million Tonnes Inferred of Copper-Zinc-Cobalt-Silver-Gold Mineralization
TORONTO, ONTARIO--(Marketwire - May 29, 2008) - Millstream Mines Ltd. (TSX VENTURE:MLM)(FRANKFURT:NJD) is pleased to announce that it has filed on SEDAR an initial resource estimate, following the guidelines stipulated in National Instrument 43-101 (NI 43-101), for its Potter Property located in northeastern Ontario, Canada, situated approximately mid-way between Xstrata's large deposits of the Kidd Creek Mine (in Ontario) and the historic Horne Mine (in Quebec) both with milling, smelting and refining capabilities.
The previous press release dated April 14, 2008 reported only an Inferred Resource while the current formal report has up-dated the catagories to now include Indicated Resources and separately, Inferred Resources as per the below table.
Millstream points out that no recovery calculations have been applied with respect to the current resources reported, as no work has been done on the metallurgy, dilution, smelter and refining aspects.
The resources estimate was prepared and authored by Dave Gamble, P. Geo. of Dave Gamble Geoservices Inc. and Edward Bettiol, P. Eng. Independent consultant. Both of these individuals are Qualified Persons under the requirements and guidelines of Nation Instrument 43-101 (NI 43-101) regulating the Canadian Mining industry. Dave Gamble, P. Geo. has over 30 years extensive experience in the exploration and the mining industry. Edward Bettiol, P. Eng., who is recognized worldwide, has over 50 years experience in all phases of the mining industry as an operator and manager in both base metals and noble metals endeavours.
Eleven (11) parallel to subparallel mineralized zones have been identified to date that remain open horizontally on strike in both east and west directions, and vertically on dip both downward and upward. The exception to upward is the zone that was previously mined in the past operations from surface to 1100 feet below surface. The multiple zones were defined with a high degree of confidence using the three dimensional (3D) modeling software Datamine Studio in conjunction with Datamine Downhole Explorer.
An interactive 3D geological model of the 11 mineralized zones is available for public viewing on Millstream's website at the address: http://www.millstreammines.com/3dmodels.html.
The Resources estimate is based only on seven (7) of the eleven (11) parallel zones and is summarized in the following table of results:
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TABLE 8 - POTTER PROJECT: SUMMARY INDICATED RESOURCE ESTIMATION FOR
A, B, C, D, E, F, and Y ZONES
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Cu Zn
ZONE Cu% Tonnes x Zn% Tonnes x
NUMBER Tonnes Grade Grade Grade Grade
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A 345,968 1.1218 388,108 1.0773 372,715
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B 109,446 1.5583 170,554 0.9101 99,603
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C 1,082,330 1.8695 2,023,427 1.3358 1,445,728
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D 450,740 1.5039 677,846 0.9161 412,901
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E 302,649 1.6636 503,483 1.8731 566,881
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F 422,891 0.9060 383,159 1.0985 464,556
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Y 314,743 0.7564 238,063 0.7737 243,512
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Total
Tonnes 3,028,767
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Sum of
(Tonnes x Grade) 4,384,640 3,605,896
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Weighted Average Grades equals sum of (Tonnes x Grade)/(Total Tonnes)
1.4477 1.1905
% Cu % Zn
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SUMMARY OF INDICATED RESOURCE ESTIMATION FOR A, B, C, D, E, F, and Y ZONES
3,028,767 Tonnes @ 1.45 % Cu, 1.19 % Zn
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Co Co Ag Ag Au Au
ZONE ppm Tonnes x ppm Tonnes x ppb Tonnes x
NUMBER Tonnes Grade Grade Grade Grade Grade Grade
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A 345,968 323.6 111,952,516 8.9 3,084,551 63.0 21,812,734
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B 109,446 329.4 36,049,380 14.3 1,561,182 126.6 13,856,476
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C 1,082,330 554.0 599,645,293 15.7 17,014,475 232.8 251,994,126
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D 450,740 324.4 146,221,882 9.2 4,134,055 93.0 41,922,969
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E 302,649 284.1 85,972,775 10.1 3,043,081 74.5 22,542,264
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F 422,891 340.4 143,956,117 8.2 3,450,722 64.5 27,295,116
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Y 314,743 179.5 56,497,911 4.2 1,315,559 21.8 6,854,224
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Total
Tonnes 3,028,767
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Sum of
(Tonnes x Grade) 1,180,295,874 33,603,625 386,277,909
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Weighted Average Grades equals sum of (Tonnes x Grade)/(Total Tonnes)
389.70 11.09 127.5
ppm Co ppm Ag ppb Au
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SUMMARY OF INDICATED RESOURCE ESTIMATION FOR A, B, C, D, E, F, and Y ZONES
3,028,767 Tonnes @ 389.7 ppm Co, 11.1 ppm Ag, 127.5 ppb Au
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TABLE 8A - POTTER PROJECT: SUMMARY INFERRED RESOURCE ESTIMATION FOR
A, B, C, D, E, F, and Y ZONES
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Cu Zn
ZONE Cu% Tonnes x Zn% Tonnes x
NUMBER Tonnes Grade Grade Grade Grade
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A 169,007 0.5851 98,891 0.6364 107,553
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B 280 1.5300 428 0.3300 92
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C 715,127 1.8067 1,292,051 1.2654 904,933
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D 212,027 0.3586 76,028 0.8221 174,315
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E 148,326 0.4903 72,730 1.0625 157,592
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F 598,762 0.8864 530,717 1.0980 657,423
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Y 227,572 0.7296 166,043 0.7828 178,148
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Total
Tonnes 2,071,101
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Sum of (Tonnes x Grade) 2,236,888 2,180,056
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Weighted Average Grades equals sum of (Tonnes x Grade)/(Total Tonnes)
1.0800 1.0526
% Cu % Zn
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SUMMARY OF INFERRED RESOURCE ESTIMATION FOR A, B, C, D, E, F, and Y ZONES
2,071,101 Tonnes @ 1.08 % Cu, 1.05 % Zn
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Co Co Ag Ag Au Au
ZONE ppm Tonnes x ppm Tonnes x ppb Tonnes x
NUMBER Tonnes Grade Grade Grade Grade Grade Grade
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A 169,007 217.4 36,744,348 3.8 637,259 70.3 11,880,504
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B 280 345.2 96,656 16.5 4,620 78.3 21,924
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C 715,127 403.5 288,527,648 14.8 10,594,909 142.1 101,613,051
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D 212,027 136.3 28,904,898 2.6 543,298 32.1 6,808,627
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E 148,326 157.2 23,319,148 3.29 488,474 35.0 5,194,565
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F 598,762 340.0 203,604,496 8.16 4,883,893 65.1 38,978,420
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Y 227,572 189.5 43,114,376 3.73 849,365 20.7 4,715,160
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Total
Tonnes 2,071,101
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Sum of (Tonnes x Grade) 624,311,570 18,001,818 169,212,251
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Weighted Average Grades equals sum of (Tonnes x Grade) / (Total Tonnes)
301.44 8.69 81.7
ppm Co ppm Ag ppb Au
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SUMMARY OF INFERRED RESOURCE ESTIMATION FOR A, B, C, D, E, F, and Y ZONES
2,071,101 Tonnes @ 301.4 ppm Co, 8.7 ppm Ag, 81.7 ppb Au
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An important factor derived from these multiple parallel zones is the vast increased mineral inventory per vertical metre that has a heavy impact on the economics of future mining plans.
To date, a total of seventy-one (71) diamond drill holes have been drilled on the Potter Project property of which a total of forty-six (46) diamond drill holes including wedged holes have been drilled specifically for exploration in the Potter Mine area. Twenty-five (25) diamond drill holes have been drilled on exploration targets elsewhere on the property away from the immediate Potter Mine area.
Based on the intersections of the forty-six (46) diamond drill holes and wedged holes a preliminary estimate of the size of the resource has been completed. A total of seven (7) significant massive to semi massive sulphide mineralized zones are geometrically arranged in a parallel to sub parallel stacked arrangement. The zones are identified from south to north as the Y Zone, the A Zone (down dip continuation of the Potter mined zone), the B Zone, the C Zone, the D Zone, the E Zone, and the F zone. Each of the mineralized zones are separated by barren unmineralized host rock. All seven (7) zones currently occur within the mine area along a strike length of 250 meters, lie within a horizontal across strike (stratigrahic) thickness of 225 meters, and occur within a vertical distance of 725 meters from +50 meters above sea level down to -675 meters below sea level. The seven zones have been determined by using the criteria of a 2.0 meter as minimum true thickness in conjunction with minimum true thickness X grade cutoff of 0.74% copper equivalent. The copper equivalency "Cu Equivalent" was based on an historical price relationship between copper and zinc of 1:0.42 such that Cu Equivalent equals Cu (wt %) + 0.42 Zn (wt %). The assay values for the other elements reported that include cobalt, silver, and gold were not incorporated into the chosen cut-off criteria. All final indicated and inferred resource estimations for each zone are reported with the individual grades for copper (wt%), zinc (wt%), cobalt (ppm), silver (ppm), and gold (ppb).
The Indicated and Inferred Resources were estimated based on analysis of a series of cross sections, horizontal plans, and vertical longitudinal sections for each mineralized zone showing all intersection pierce points for all drill holes that cut each individual zone. Industry standard polygonal estimation of final volumes and grades were completed for all polygons for each mineralized zone. A thorough review of the assay database, weighted-average composite assays, and estimation of horizontal widths of all intersections perpendicular to the plane of each vertical longitudinal section were completed.
The Indicated and Inferred Resources are in-situ and based upon a maximum of a 50 metre and a 100 metre radius of influence respectively around drill hole intersections. The specific gravity used has been 3.5 derived from the records of the past mining.
The authors of the resource estimate recommend further diamond drilling to be undertaken both from surface as well as underground at the Potter Property to further delineate the limits of the mineralization. To pursue drilling underground, they recommend the de-watering of the existing 388m shaft in order to achieve access to the past mine workings for drill station set-up. Millstream is now in the process of complying with all the necessary requirements and regulations to attain a permit to de-water.
Dave Gamble, P.Geo. and Edward Bettiol, P. Eng, both consultants of Millstream, are the Qualified Persons as described in National Instrument 43-101 for the Potter Mine Project. They have reviewed this report and press release with company management.
About Millstream Mines Ltd.:
Millstream Mines Ltd. is a Canadian-based mineral exploration company whose principle objective is to enhance and develop known mineral properties to production potential. The Company has active projects in the Province of Ontario, Canada and in the State of Montana, USA. The company's main focus continues to be the 100% owned Potter Mine Property. This past producing property is host to copper-zinc-cobalt "stacked" mineralized zones located in the highly prolific Abitibi Greenstone Belt and more specifically in the Kidd-Munro Assemblage near the town of Matheson in north eastern Ontario.
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May. 28, '08 Close: $0.17
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Millstream seeks safe harbour with regard to forward looking statements.
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