South Dakota’s Keystone Mining District Regarded as a Homestake Analogue
3,000-metre Drill Program Designed to Confirm and Expand Current In-Situ Gold Resources
Camp-scale Gold Potential
(Vancouver, BC., October 1, 2012): Mineral Mountain Resources Ltd. (“Mineral Mountain” or the “Company”) (TSXV: “MMV”) (OTCQX: “MNRLF”) is pleased to announce that final approval for drill permit EXNI #418 has been received from the South Dakota Department of Energy and Natural Resources (DENR) to carry out Phase 1 diamond drilling principally designed to increase and reclassify in-situ resources historically defined by Energy Fuels Corporation between 1993-1996 in the Bismarck, Keystone and Bullion Mines in the southern part of the Black Hills in South Dakota. In addition, the Holy Terror Mine, the largest and deepest gold producer in the region, had never been drill tested, despite the fact the gold horizon improved with grade in the lower levels. Our Phase 1 drill program plans to test the depth potential of this rich vein system. Mineral Mountain will use results of its detailed compilation of all historical drilling, as well as, the results from the recently completed high resolution airborne magnetic survey and the LIDAR survey completed over the Holy Terror Project area to guide the Phase 1 drilling program. A drill contract has been awarded to Major Drilling and mobilization to the first drill site is in progress. More information on the Holy Terror Project, in particular the previous news releases, can be viewed on the Company’s website www.mineralmtn.com.
About the Holy Terror Gold Project
The Property, which hosts eight historical gold producers, is located within a belt of rocks consisting of sheared, carbonate iron-formation rich, metamorphosed Precambrian rocks that measures about 5-6 mile (8 km) long and 2,000-3,000 feet (0.60 km) wide. Similar to the Homestake Gold Mine, this northwest trending belt hosts at least three parallel horizons that contain vein and iron-formation-related gold mineralization. The historic production from the Keystone Mining District was intermittent between 1896-1942 and totaled about 106,000 ounces from 298,865 tons of ore at an average grade of 10.77 gpt Au (0.314 opt). Most of the historical production came from the Keystone and Holy Terror mines which are part of the original Option Agreement. Production was halted because of the implementation of the War Measures Act during the Second World War. Based on historical mine plans and data, the U.S. Bureau of Mines in U.S. Geological Survey Bulletin 427 (1940), estimated a potential resource for the Keystone District mines of 1.53 million tons ore grading 11.66 gpt Au (0.34 opt) to a maximum depth of 366 m (1,200 feet). This constitutes a historical estimate under National Instrument 43-101 (“NI 43-101”), as such estimate has not been verified as a current mineral resource. In general, given that the historical estimate was prepared by the U.S. Bureau of Mines, Mineral Mountain believes that the historical estimate is a reasonable estimate based on data available at the time. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and Mineral Mountain is not treating the historical estimate as current mineral resources or mineral reserves.
Six of the eight former gold producers included in the original Option Agreement with the Holy Terror Mining Company are the Holy Terror Mine, one of the oldest gold mines in the Black Hills area, the Keystone Mine, the Egyptian Shaft, the Egyptian Shaft #2, the Ida Florence Shaft and the Juniper Mine. Subsequently, the Holy Terror joint venture acquired a 100% interest in the Bullion Mine from Energy Fuels Corporation and purchased a 100% interest in the Bismarck Mine from a local owner. All of the former producers are located on three parallel major, crustal-scale braided fault structures that occur within the broad belt of vein and iron-formation related gold mineralization. Six of the eight shafts are aligned in a northwest direction for a distance of approximately 1.4 km (see location plan) and the gold mineralization dips steeply to the northeast. The Keystone area is a historic mining district that consists of numerous prospects and several old mines associated with the above braided crustal-scale fault system within metamorphic rocks of the Proterozoic Black Hill uplift. Gold mineralization occurs in sulphide lenses and breccias along faults, as Homestake-style iron formation replacement mineralization, and in quartz-carbonate veins. Depletion of ore was not a factor at the Holy Terror and Keystone mines.
“Our recently completed low-level, high resolution airborne Tri-Axial magnetic survey has provided a “never before seen look” at the structural and geological setting of this significant gold system that underlies our Holy Terror Project in the Keystone Mining District”, said Nelson Baker, President and CEO of Mineral Mountain. “The surveys have outlined numerous geophysical and structural features that we believe to be the southern extension of the Homestake Gold Trend and they are proving to be extremely valuable exploration tools. Our research suggests that the Keystone area gold systems should have significant depth and strike potential”.
The property contains many high-amplitude magnetic anomalies trending northwesterly and considered to be extensions of known units of braided bands of iron formation that, locally, are favorable hosts for replacement-style mineral systems carrying high grade gold mineralization. The survey results suggested the potential for identifying several buried gold systems within the Holy Terror Project. Phase 1 diamond drilling will test both the structural and magnetic anomalies that are considered to be high priority exploration targets as well as extensions of known gold mineralization adjacent to the several past producers covered by the Holy Terror project.
The Holy Terror gold project is managed by Kevin Leonard, a Professional Geologist with greater than 30 years of exploration experience. Wally Rayner (P.Geo.), the Company’s VP of Exploration, has verified the contents of this press release and is the Qualified Person for this project.
On Behalf of the Board of Directors
MINERAL MOUNTAIN RESOURCES LTD.
“Nelson W. Baker”, President and CEO
For further information, please contact
Brad Baker, Vice-President Corporate Development & Director
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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.