MLM (TSX-V)
 
Potter Airport Koval Tamarack Summary
  

GENERAL SUMMARY

Mission Statement

The principal objective of Millstream Mines Ltd. is to enhance and develop known mineral properties to production potential. Millstream holds mineral claims or interests directly, or through wholly owned subsidiaries in Ontario, Canada, and the USA.

Overview of Properties

Ontario, Canada, Potter Mine Claims

The Potter Property is a group of 28 leased and patented mineral claims in the prolific mining area of North Eastern Ontario, located in a geologic belt adjacent to the Porcupine Destor Fault. The rock formations are a structurally complex, highly faulted assembly of volcanics intruded by peridotite, granodiorite, and diabase dykes. Rocks in the vicinity of the Porcupine Destor Fault are host to numerous mineral showings with several past, present and developing producers of gold, base metal and asbestos. Access to the Property is on 6 miles of well maintained forest access road branching North off highway 101, 18 miles East of Matheson, Ontario.

From previous mining operations the Property has infrastructure, underground workings, vertical mine shaft 1320 feet deep and 8 mining levels extending approximately 1200 feet westerly from the shaft. This area of the Property was mined and 478,000 tons processed from 1967 to 1972 with a mill throughput in the latter years of 750 tons per day. Diamond drilling reported continuation of the sulphides for at least 300 feet below the bottom level. Working plans of the two bottom levels suggest a lengthening, widening and grade improvement, particularly in zinc content of the ore zone with depth. Possible Resources, top opened on the bottom level are 250,000 tons grading 2.66% copper, 3.45% zinc and 0.015 opt. gold.

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) 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. (Please see Potter Geological Model below) 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 summary total for the indicated resource estimation for all the Y, A, B, C, D, E, F, zones is a total of 3,028,767 tonnes at 1.45% copper, 1.19% zinc, 389.7 ppm cobalt, 11.1 ppm silver, and 127.5 ppb gold. 

Additional to the indicated resource, the summary total for the inferred resource estimation for all the Y, A, B, C, D, E, F zones is a total of 2,071,101 tonnes at 1.08 % copper, 1.05 % zinc, 301.4 ppm cobalt, 8.7 ppm silver, and 81.7 ppb gold.



Ontario, Canada, Airport Property

Millstream recently obtained an option to earn a 50% interest in 46 mining claims located in Falconbridge Township, Sudbury Mining Division, northern Ontario, Canada. The claims, known as the Airport Property, are located at the eastern edge of the Sudbury structure tied onto the east side of a large group of claims held by Falconbridge Ltd.

Deep seated - high grade mineralization is being explored along this edge of the Sudbury structure to the northwest of the Property. It has been reported that Inco Ltd. at its northeast rim Victor property is exploring a rich nickel, copper and platinum deep deposit having gross in-situ value in excess of US $1,000 per ton. (As referred to by the Globe & Mail, January 25, 1994 and the Northern Miner, October 27, 1997)

Previous exploration on the Airport Property carried out by others resulted in the discovery of sulphide mineralization and low copper, nickel and gold values. The Property is reported to contain anomalies of Cu, Ni-PGM mineralization and areas of gold value. It has Geophysics established conductors with rock types which may host Sudbury type Ni-Cu and gold deposits.

Two major faults cross the Property trending southeast affect all rock units and are known as the Airport Fault and the Norduna Fault. These faults are now filled by olivine diabase dikes and copper-nickel-cobalt-PGM mineralization has been found in association with these faults.

The northwest portion of the Property hosts mafic rocks of the Stobie formation, including basalts, gabbros and norites. Areas of Sudbury Breccia with sulphide mineralization have been observed in the northern part of the Property. Gold geochemistry anomalies have been found in the southwest part of the Property and may represent the extension of the mineralization zones of the Falcon Gold Mine which abuts the Airport Property claims.

Millstream is responsible for funding an exploration expenditure of $550,000 on behalf of the Property by March 31, 1999. Thereafter, Millstream shall be responsible on an equal basis, representing its 50% interest for all further mutually approved progress and funding commitments.

Millstream crews have commenced linecutting to establish a ground control grid over the property. A follow up ground based Magnetometer/ VLF Electromagnetic Survey with an overlapping Max-Min Geophysical survey will commence in the near future.

Results of the current sampling done by Millstream in the northern part of the property have returned the following assays:

  1. Grab sample taken from the dump area of a past shallow test shaft :


  2. Au
    (oz/t)
    Cu
    (%)
    Ni
    (%)
    Pt
    (oz/t)
    Pd
    (oz/t)
    0.001 0.90 0.009 < 0.001 <0.001

  3. Samples from recently blasted trench ľ mile south of the above referenced past shallow test shaft area:


  4.   Au
    (oz/t)
    Cu
    (%)
    Ni
    (%)
    Pt
    (oz/t)
    Pd
    (oz/t)
    1 0.016 1.06 0.006 < 0.001 <0.001
    2 0.010 1.49 0.005 < 0.001 <0.001
    3 0.010 0.213 0.006 < 0.001 <0.001
    4 0.008 0.283 0.006 < 0.001 <0.001
    5 0.025 0.462 0.008 < 0.001 <0.001
    6 0.014 1.53 0.004 < 0.001 <0.001

Montana, USA Tamarack Property

The Tamarack Property its a former producing, high-grade gold operator in the Tobacco Root Mountains, Madison County, Montana consisting of six (6) patented claims and a further unpatented claim block tying all claims contiguous. The Tamarack Property is accessible year round, 4 miles from the town of Sheridan, on the same gravel maintained road leading up to the Uncle Sam Property (a further 6 miles).

The associated assets include a new small 60 to 100 t.p.d. mill erected in the early 1990's and an older small 50 to 60 tpd mill last operated in the 1960's. Additional associated assets are tailings disposal ponds, water supply lagoon and well, compressors, bulldozers, loaders, haulage trucks; underground mining equipment, parts and tools. An electric power transmission line complete with a sub-station on the property can be energized on signing a current contract with the Montana Power Co.

The Tamarack Property was initially discovered in the 1860's and has been worked intermittently, both on surface and underground, up to the present time. The most dedicated undertaking of the property was carried out by Mr. Alexander Leggat, B.S., E.M., a professional mining engineer, from 1927 to 1937. During this period Leggat surveyed and assayed the past workings producing detail plans of the mine and geology. Due to the lack of proper financing he developed and ran the mine on a salvage type operation until he ran out of funds. In his final report dated March 30, 1937, he expressed his findings and conclusions of the ore occurrence and characteristics. Leggat described the occurrence in the Broadgauge ore body of the Tamarack Property, below and above the 406 drift, "having the gold mainly in the limestone above the hanging wall of a large body of intruded porphyry, and the porphyry seems to carry low values for a considerable thickness. The main ore body, however, being the limestone, in which occur irregular pipes, streaks and bunches of a white, siliceous material, rather porous, and not vein quartz but is usually very rich - samples having assayed as high as 27 opt. The gold occurs in the rock absolutely free and very pure."

Millstreamís initial plans for the Tamarack Property are to establish a new surface grid tying in the surface structures, excavations and adit portals. Thereafter, to carry out systematic geophysics surveys to contour the limestone/intrusive contact with follow-up diamond drilling.

The Tamarack agreement allows Millstream to utilize the older mill to process the ore produced from the Uncle Sam Property. Millstreamís plans are to refurbish and up-grade the older mill for this purpose. As previously reported in press releases August 15/97 and September 25/97 an estimated 4500 tons grading 0.44 opt gold from the remnants of the old stopes in the Uncle Sam can be processed for a bulk metallurgical test run. Additional possible mill feed can be obtained by advancing the hanging wall vein drift beyond the old workings.

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