Drill on property and drilling to start immediately on ROF property.......
Mill City partners with Temex in McFaulds Lake area/Diamond drilling to commence immediately
9/2/2008 9:30:18 AM - Canada NewsWire
CALGARY, Sep. 2, 2008 (Canada NewsWire via COMTEX News Network) --
TSX VENTURE SYMBOL "MC"
MILL CITY GOLD CORP. ("Mill City" and/or the "Company") is pleased to announce that it has entered into an Option and Joint Venture Agreement (the "Agreement") with Temex Resources Corp. ("Temex") and East West Resource Corporation ("East West") (collectively "the Companies") whereby Mill City can earn a 50% interest in the GP2 Property in the Noront-McFaulds Lake area.
Bruce Durham, Executive Chairman of Temex commented, "We have established a good working relationship with Mill City and we are excited to commence drill testing these high priority targets immediately with the diamond drill having just arrived on the property."
The GP2 Property, which comprises 17 mining claims totaling 240 units covering 9,600 acres, was part of a larger land package that was subject to VTEM helicopter-borne geophysical surveying conducted by Temex and its partners in winter 2008. The survey identified numerous anomalies on the GP2 Property from which priority targets were selected for drill testing immediately. The majority of the targets are considered to have potential to host significant nickel-copper-PGE or Cu-Zn mineralization.
The GP2 Property is held under a 50:50 Joint Venture between Temex and East West. Mill City can earn a 50% interest in the GP2 Property by issuing an aggregate of 1,000,000 shares to Temex and East West, of which 750,000 are due on signing, and by spending an aggregate of $5 million in exploration on the Property over three years. During the earn-in period, Mill City has appointed Temex as the Agent to carry out the exploration programs, which will be managed in the field by East West. Once Mill City has exercised the Option to earn a 50% interest, Temex has the Option to participate in the Joint Venture at 25% or to revert to a 7.5% interest carried to production.
The Agreement is subject to the approval of the TSX Venture Exchange.
Mill City is a Canadian based exploration stage resource company engaged in the acquisition and exploration of base and precious metals properties. The Company is focusing its exploration efforts on its previously announced option from Temex to acquire a 50% interest in approximately 16,000 ha located in the James Bay Lowlands near the Noront Ni-Cu-PGE discovery.
ON BEHALF OF THE BOARD OF DIRECTORS
"James R. Brown"
James R. Brown
Chairman, President & CEO
<< The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this Release. >>
SOURCE: Mill City Gold Corp.
James R. Brown at (403) 640-0110 or visit the Company's website at www.millcitygold.com
