Jul 18, 2016
Mineral Mountain Closes Purchase And Sale Agreement With Bhb Partners And Has Completed The Compilation Of Its Comprehensive Historical Database
(Vancouver, July 18, 2016): Mineral Mountain Resources Ltd. ("Mineral Mountain" or the "Company") (TSXV: "MMV") is pleased to announce that, further to its news release of March 7, 2016, the Company has closed the acquisition of 19 mining claims and a comprehensive historical database of exploration work (the "Historical Database") in the Rochford gold district, South Dakota, pursuant to the Purchase and Sale Agreement between the Company and with Larry Berger, Curt Hogge and Ron Berdahl (who are collectively known as BHB Partners) and Tate Berger (collectively, the "Owners"), as amended (the "Agreement"). The Company has also completed the compilation of the Historical Database , which led to the recent staking of 37 unpatented lode claims located along the Standby-South Standby-Lookout Mine trend which the Company believes has significantly improved the Company's strategic land position in the Rochford gold district. In addition, the Historical Database substantiates several positive geological and mineralogical comparisons between the Homestake Mine district and Rochford gold district and provides an immediate focus for future exploration. Since 2013, the Company has continuously added value to the Rochford Project through land consolidation, acquiring a significant database for the area and conducting what we believe to be the first high resolution helicopter-borne Mag and EM survey ever conducted in the area.
Pursuant to the Agreement, the Company has acquired: (1) three strategically located unpatented lode mineral claim groups (the South Standby Property, the Cochrane South Property and the Silver Creek Property totaling 19 claims (approx. 380 acres) (the "Purchased Claims")); and (2) a the comprehensive Historical Database , dating as far back as 1927, containing results from over $10 million US in historical exploration work conducted in the Rochford Gold District by six major explorers.
Including the Purchased Claims, the Company's large contiguous land position in the Rochford gold district cover several Ledge-type synclinal limb folds that host important concentrations of gold mineralization associated with banded iron formation and similar to those produced at the Homestake Mine. The compiled database highlights four high priority gold targets, three along the Standby-South Standby-Lookout Mine Trend, and one covering the down plunge extension of the Cochrane deposit, that will require a well-planned, systematic drill program which is presently in the planning stage. Including the Purchased Claims and the recently staked 37-claim block, the Company now owns a 100%-interest in 345 unpatented mineral claims for an area totaling approximately 5,447 acres.
The Rochford Gold District
The northern limits of the Company's Rochford Project is located only 17 kilometers south of the world's largest iron formation hosted gold deposit, the Homestake Mine, which has produced a little more than 40,000,000 ounces of gold averaging about 8.38 g/t Au (0.27 opt) over the life of the mine from 1876 to 2001. At the Homestake Mine, commercial grade gold mineralization was mined from 11 Ledges, all located in synclinal limb folds that, collectively, extended from surface to a mine depth of 2.4 km and extended down the limb fold plunge for a distance of 4.0 km (Dakota Territories Resource Corp. R. Backman, personal comm. 2016).
The geology of the Rochford District is similar to that at the Homestake Mine with gold hosted in multiple deformed Proterozoic carbonate facies and local sulfide-facies iron formation that has typically been metamorphosed to cummingtonite/grunerite phyllites/schists and chlorite schists. There are numerous, relatively shallow past producing gold mines and prospects in the district that were developed in the late 1800's and early 1900's. Mineral Mountain's property package covers approximately a 14 km long segment of auriferous iron formation considered to have many geological and mineralogical aspects to the Homestake Mine.
The Rochford District covers more than 78 square kilometers and has been explored intermittently by several major companies like Getty, Newmont, Noranda, Cominco, Western Mining and Homestake Mining in the 20th century. Despite gold prices hitting $1,900 US per ounce in 2011, the Homestake Gold Trend has been completely overlooked by explorers with the last serious exploration for the Rochford District being completed in 1997. Mineral Mountain's technical team took the approach that, because the 70-km long Homestake Gold Trend, a crustal scale deformation zone, appeared to be strongly endowed with iron hosted gold mineralization along its entire length, it was unlikely that the Homestake Mine was a unique event.
The following are a few highlights from the Historical Database:
Shares Issued to BHB Partners
Pursuant to the Agreement, Mineral Mountain has now issued to the Owners a total of 4,000,000 common shares. All of such common shares are subject to a four month hold period in Canada expiring on November 18, 2016.
Also pursuant to the Agreement, Mineral Mountain also granted to the Owners a collective 2% net smelter returns royalty on the Purchased Claims, a collective 1% net smelter returns royalty on Mineral Mountain's claims in the Rochford District and a collective 1.5% net smelter returns royalty on claims falling within the area of mutual interest (the "Area of Interest Claims Royalty"). The Area of Interest Claims Royalty will only be granted if the acquired property or properties are not already burdened with a royalty.
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101 and reviewed and approved by Nelson W. Baker, P.Eng., the President and CEO of Mineral Mountain Resources Ltd. and a Qualified Person for this project. All exploration activities at the Rochford Project are being carried out under the supervision of Kevin Leonard, P.Geo., also a Qualified Person for this project.
About Mineral Mountain and the Rochford Project
Mineral Mountain Resources Ltd., through its wholly owned subsidiary Mineral Mountain Resources (SD) Inc., is focused on the exploration and, if warranted, the development of it's 100%-owned Rochford Project along the Homestake Gold Belt approximately 26 km south of the Homestake Mine and located in the Black Hills of South Dakota, U.S.A. The Rochford Project covers approximately 5,447 acres the Company's focus will be to explore the local mineral units of auriferous iron formation.
The Rochford Project is located near Rapid City where it can be easily accessed by a network of roads and has hydro-electricity and modern internet services to the drill sites. As well, the area offers a skilled labor force and is one of the lowest cost exploration areas in the United States. South Dakota has a low political risk and embraces responsible mineral development.
On Behalf of the Board of Directors
MINERAL MOUNTAIN RESOURCES LTD.
"Nelson W. Baker", President and CEO
Forward looking information
This release contains "forward-looking information" within the meaning of applicable Canadian securities legislation ("Forward-looking information"). Forward-looking information includes, but is not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion, growth of the Company's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.
Often, but not always, forward-looking information can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate" or "belief" or describes a "goal" or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking information is based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
You can view the Next News Releases item: Mon Sep 12, 2016, Mineral Mountain Signs An Exploration Agreement With Option To Purchase The Historic Standby Gold Mine Property With G & D Gold Mining Company In The Rochford Gold District, South Dakota, Usa
You can view the Previous News Releases item: Wed Jun 22, 2016, Mineral Mountain Continues to Expand its Land Position in the Rochford Gold District, Black Hills, South Dakota
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