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Media Coverage of Millstream Mines Ltd.

(Most current articles appear first)

Millstream to purchase "promising" set of claims

Friday March 31,2000
Northern Daily News

BLACK RIVER-MATHESON - Millstream Mines Ltd. secured funding recently to satisfy its option obligations to purchase a promising block of three claims west of a set of claims where the old Potterdoal Mine shaft - a past producer - is located. Millstream signed an agreement in February with Orogrande Resources Inc. (ORG) in which ORG can earn a 49 per interest by supplying funding of $400,000 over the next two years, making cash payments of -$30,000 and issuing 100,000 common shares to Millstream.

The three claims are located north of Millstream's Potter base metal property and regional geology indicates they may be situated on the northern limb of a syncline with the Potter situated on the southern limb, according to a company press release.

Recent geophysics investigated and delivered chargeability and resistivity signatures associated with a target horizon generally characterized as hosting disseminat-ed to massive sulphides, a host for base metals.

Millstream says diamond drilling done in the past on the property and abutting claims indicated a westerly trending mineralization which the current geophysics supports. Previous past drill intersections, as reported by Granges Exploration Ltd., intersected 7.7 per cent copper in hole 92-09 over a 0.6 metre downhole section and 3.33 per cent zinc in hole 92-08 over a 2.3 metre downhole section. The planned exploration program is to drill test at various depths the identified favourable sulphide Induced-Polarization (IP) anomalies.

The principle objective of Millstream Mines Ltd. is to enhance and develop known mineral properties to pro-duction potential.

Millstream Mines Ltd. holds a 100 per cent interest in the old Potter Mine property, located in Munro Township, east of Matheson.


Waste finds could bring mine back into operation

Mining North March, 2000
By Gregory Reynolds

Rich mine waste at the former producing Potter base metal operation could tilt the balance when it comes to put the mine back into operation. Millstream Mines Ltd. (MLSM-CDN) says it has received "very favourable laboratory test results from its Potter Property mill tailings." Millstream president Ernest Harrison said, "a proprietary electrochemical leaching process confirmed that sulphide minerals in the tailings can be selectively oxidized by electrochemistry manipulation for segregated recovery. "Millstream has drilled, sampled and assayed the tailings, confirming a calculated average grade at 0.2 per cent copper, 1.5 per cent zinc and 0.05 per cent contained within 480,000 tons from past milling operations."

He said "this potential asset has an in situ metal value based on current marked prices for copper of US $0.83/lb., zinc of US $0.50/lb and cobalt of US $14.25/lb equal to $22,600,000 Canadian (using 1.45 Cdn conversion factor).

The Company now is seeking $600,000 to conduct a test program on the site in Munro Township inside the municipality of Black River-Matheson. Harrison states "Millstream over past years has been investigating the possibility of extracting metals of interest (copper, zinc, cobalt) contained in the existing tailings on site." Millstream assigned this task to Harrison' Environmental Services Inc. (HESI) of North Bay. HESI teamed up with Enpar Technologies Inc., (Enpar) of Guelph and over the past two year's carried out experiments and laboratory tests with very encourag-ing results.

In addition, HESI has been involved with an American firm with expertise, in engineering and man-ufacturing fluid treatment systems for removal of toxic contaminants, through the application of both Membrane and Bio-Bead Technology. Enpar is a technology company with proprietary and patented electrochemical technology applicable to sul-phide tailings. Enpar's Electro-Chemical Quik Leach Technology (patent pending) enhances leaching rates of low-grade sulphide waste materials.

Based on the favourable laboratory results a Site Pilot Plant Test program is planned to exploit this innovative technological approach to metal recovery. Enpar's Electro-chemical Quik Leach process combined with a Membrane System to concentrate the metal ions for the selective electro-winning or precipitation will be implemented.

The Pilot Plant operation will establish datum for design and valuation for commercial application such as; power voltages, anode and cathode structure, pH and redox (Eh) values, fluid flow rates, weather condition impact, etc. Upon success with the Site Pilot Plant, an enlarged capacity commercial operation would be installed to process the tailings.

Millstream has agreed to a 10 per cent overriding royalty of the metal values recovered to HESI and Enpar for use of the technology. Millstream management believes that adding the electrochemical and membrane technology to a conventional milling circuit could conceivably enhance and increase the sale value of material produced by the mill. This would increase the viability of marginal ore grade operations and dramatically increase profitability (bottom line) of most operations. Millstream's Potter Property would be directly impacted with substantial increases in its projected calculated revenues in a feasibility report.


Potential Grows - Millstream Encouraged By Results On Potter Property

Northern Daily News
Kirkland Lake
By Rick Owen
Jan. 21, 2000

KIRKLAND LAKE - Millstream Mines Ltd. continues to increase the potential of its Potter Mine property. Recent drilling on the former producing base metal property are described by company officials as being "extremely encouraging." Ernest Harrison, president of Millstream said the part of the property they are drilling now is relatively unexplored. While geophysics has been done in the area, there has been no previous drilling. He said the current drilling is aimed at increasing the mineral potential on the property, which is located east of Matheson and north of Highway 101. Mr. Harrison said areas to the north, east, south and extreme west of the property have signatures very similar to past producing sections of the property.

The last three holes, Mr. Harrison said, tell the company that the conditions are all there and there is the proper type of mineralization. Selected sections from the last three drill holes are being sent for assays. These will tell the company what the concentration of the mineralization is. Mr. Harrison indicated that more drilling is needed on the property. Currently there is one drill working on the base metal property.

In the last round of drilling, Hole S99-07 was drilled from the south and Hole S97-07 (extension) was drilled from the north. Both holes were drilled on grid line 5+25W, and crossed each other at 430 vertical metres below surface. The weak sulphide disseminated and fracture style mineralization was intersected in each hole at various depths establishing a continuous zone. the discovered zone containing remobilized sulphide mineralization averages 220 metres wide down to 710 vertical metres below surface and remains open at depth. Hole S99-06 was targeted to test Quantec's geophysical Real Section I.P. strong anomalous zone centred on the grid line 4+40W at a vertical depth 700 to 900 metres below surface. This hole was stopped at 642.5 metres due to overall deterioration of ground conditions. The target is now planned to be tested from a south drill setup. The hole intersected favourable volcanic stratigraphy with traces to weak disseminated sulphide and fracture system mineralization appearing between 529 to 534 metres. Hole S99-07 was targeted to test Quantec's Real Section I.P. anomalous zone centered on grid line 5+25W at a vertical depth of 500 to 600 metres below surface and underneath currently drill hole S97-07. The hole was drilled 1018.7 metres and intersected 677 metres of weak intermittant sulphide disseminated and fracture style mineralization from 240 metres to 917 metres downhole.


Millstream continues hunt at Potter

The Northern Miner
Nov. 15-21 1999
pg. 12

Millstream Mines (MLSM-C) has begun a program of deep drilling to test an induced-polarization anomaly at its Potter mine property, near Timmins, Ont.

The target exhibits geophysical signatures similar to massive sulphide base metal mineralization found elsewhere in the area, the company says.

Millstream also has deepened a hole drilled in 1997 by more than 300 metres. Hole S97-07 yielded 255 metres of weak sulphide mineralization between 320 metres and 575 metres.


Sulphide Deposit - Millstream Officials Encouraged by Exploration at Potter Mine

Northern Daily News
Kirkland Lake
By Thomas Perry
Aug. 21,'99

Munro Township - A joint venture between Millstream Mines Ltd. and Hunter Dickenson Group has identified a promising deposit of sulphide at the Potter Mine property northwest of Kirkland Lake. Millstream treasurer Rob Chase stresses that they are still in the early exploration stages of the project, but the results to date have been very encouraging. Four of a planned 15 deep difficult diamond drill holes have been completed to date. Three of the holes test the east and west extension of the sulphide deposit for a combined strike length of 145 metres. The fourth hole was drilled to test the downward extension at 700 vertical metres vertical metres and intersected a favourable mineralized zone.

Copper and zinc were mined at the Potter Mine between 1967 and 1972 and the sulphide deposits located in the current drilling program suggest that the property could still contain significant amounts of base metals. "We are looking at the data from the current drilling program and from earlier drilling and trying to pinpoint future targets," Mr. Chase said.

When the Potter property was in production prior to 1972 it had been mined to a depth of 1,100 feet. It yielded 477,572 tonnes of ore grading 1.63% copper, 1.5% zinc and between .1 and .5 (opt) silver during its initial life as a producing mine. The value of zinc was very low at that time and Mr. Chase says most of the zinc extracted from the mine was left in the tailing ponds.

The current drilling program has established sulphide deposits to a depth of 3000 feet and suggests the deposit extends significantly both east and west. "It's too early to tell yet just what kind of tonnage we are looking at, but the results to date look encouraging," Mr. Chase said. The company is still doing what is best described as exploration drilling, but if results continue to be encouraging they will switch to definition drilling in the next phase - designed to determine just how much ore is sitting in reserve. Mr. Chase said the current drilling program, with a maximum value of $4 million, is scheduled to be complete by the end of the year.

Before any thought would be given to putting the Potter Mine back into production the reserve would have to be detailed on three sides and a feasibility would have to be completed.

The price for copper, zinc and other base metals has been low, but Mr. Chase said they have begun to firm up in recent weeks and the long range prognosis is quite good. "All you have to do is look at the stock prices of some of the majors such as Noranda to see that things are starting to pick up," he said.


Millstream extends Potter

The Northern Miner
April 5-11, 1999 pg. 10

Deep drilling by Millstream Mines (MLSM-C) has extended mineral-ization downdip at its Potter vol-canogenic massive sulphide prop-erty near Matheson, Ont.

Hole 99-O1A intersected 62 metres of the favourable mine se-quence, within which four separate lenses averaged:

- 2.11% copper, 1.4% zinc, 0.093% cobalt and 17.14 grams silver per tonne over 1.55 metres (from 1,158.4 to 1,159.95 metres);

- 1.71% copper, 0.46% zinc, 0.037% cobalt and 11.66 grams silver over 1 metre (from 1,1161 to 1,1162 metres);

- 1.26% copper, 1.18% zinc, 0.036% cobalt and 9.94 gram's sil-ver over 1 metre (1,165.2-1,166.2 metres); and

- 1.96% copper, 3.18% zinc, 0.085% cobalt and 18.17 grams silver over 7.82 metres (1,171.9- 1,179.72 metres).

The latest hole was collared to test the horizon below hole 98-01, which, until now, was the deepest hole drilled. That hole hit one lens measuring 7.75 metres in length (605-612.75 metres) and averag-ing 5.34% copper, 3.24% zinc and 0.067% cobalt. The Potter deposit was mined from 1967 until 1971, when low copper prices forced the operation to close.


(excerpt from article under following heading)

Drills turn at three Abitibi base metal projects

The Northern Miner
March 15-21, 1999 pg. 11

Millstream Mines (MLSM-C) is bringing a bigger drill on to its Potter Mine property in Munro Twp., about 20 km northeast of Matheson, to drill four 1,300-metre holes downdip from earlier drill intersections that encountered copper-zinc mineralization. Three holes drilled in 1998 cut multiple zones of massive sulphides, grading 1.5-7.8% copper and 0.3-4.8% zinc, over core lengths of 3-27 metres.


Metals spark search just east of Matheson

The Northern Miner
March 6, 1999 pg. 8A

MATHESON - Millstream Mines Ltd. is going deep looking for an economic base metal deposit. The exploration project is north of Highway 101, east of Matheson. Dave Gamble, Millstream's consulting geologist, said they are chasing a massive sulphide deposit containing copper, zinc, cobalt, and silver. Exploration is concentrating on finding the deposit below the workings of the former Potter Mine. The property has a 1,272 foot shaft, headframe and when it was in production mining was carried out to a depth of 1,100 feet, the eighth level of the mine. Mr. Gamble said the property sat dormant since 1972 and in l995-96 Millstream did surface work and some short hole drilling. According to the Kirkland Lake Resident Geologist's report the mine produced 477,572 tons with a recovered grade of 1.63 percent copper and plus or minus 1.5 percent zinc.

Millstream started its deep diamond drill program in December 1997 and has completed 11 holes. Mr. Gamble said so far drilling has confirmed sulphides to a vertical depth of 2,175 feet. Also during the drilling program Mr. Gamble said they made a significant cobalt discovery in the massive sulphides. To date Mr. Gamble says they are seeing thicker zones and higher grade at depth. The drilling indicates they are encountering several stacked horizons and some holes have hit several zones of sulphides. Millstream has one Long year 50 drill rig on site which is capable of drilling holes to a depth of 7000 feet. The company says the current drilling program is to further expand and confirm the downward continuity of the discovered massive copper, zinc, cobalt sulphide ore zones for an additional 1,000 feet below what was confirmed by previous drilling. Millstream hopes to confirm 2,000 feet of massive sulphide zones below the past mine workings with parallel zones (stacking) that are open at depth.

The Initial stage of the deeper drill program is to drill four holes, 4,265 feet in length to intersect copper, zinc, cobalt massive sulphide ore zones 3000 feet below surface. If the company is successful with this four hole program Millstream says infill drilling or the wedging off existing holes will be required for configuration of the ore zones.

Some highlights from previous deep drill results include; hole S97-09 intersected 25.40 feet grading 5.34 percent copper, 3.24 percent zinc, 0.067 percent cobalt and 1.16 ounces silver, hole S98-05 intersected 40.40 feet grading 1.53 percent copper, 2.05 percent zinc, 0.131 percent cobalt and 0.42 ounces silver. Hole S98-06 intersected 87.80 feet grading 2.57 percent copper, 1.68 percent zinc, 0.082 cobalt and 0.61 ounces silver. This section includes 38.06 feet grading 4.34 percent copper, 2.18 percent zinc, 0.122 percent cobalt and 0.94 ounces silver.


Copper boom boosted interest in Millstream

MATHESON- Interest in Millstream Mines Ltd.'s Potter Mine property started during the copper boom in the late 1920s. According to excerpts from Paul Coad's M.Sc. thesis, University of Toronto, 1976, a shaft 30-feet deep was sunk. This shaft intersected sulphides grading one to two per cent copper, however, the mineralization had limited length. In 1952, a drill bole put down for assessment purposes intersected interesting zinc-copper values and a company known as Centre Hill Mines Limited was incorporated to work the property. From 1952 to 1955 several boles were drilled in the discovery area each year. As a result a major diamond drilling campaign was launched to explore the favourable hyaloclastite horizon thought to be rhyolite. In 1956, almost 40,000 feet of diamond drilling was completed along a 1,350 foot length of the hyaloclastite horizon. In 1957, a three compartment shaft was sunk 408 feet and a crosscut was driven at the 350 foot level. Thirty feet of drilling was completed along the top of the hyaloclastite horizon, before financial difficulties caused the work to stop temporarily. In 1959 Centre Hill Mines Ltd. paid Zenmac Metal Mines Limited to conduct an electromagnetic survey over the property. Drilling of some of the anomalies and the hyaloclastite horizon followed the survey.

In May, 1962, a proposal was made to move Thorncliffe Mines' milling plant from Garrison township to the mine property. There was little more work done until 1964 when underground exploration resumed. By June, 1965, the shaft was deepened to 630 feet and levels were added 350 and 600 feet. In February, 1996, the mine was renamed Munro Copper Mines Limited and began to produce copper in 1967. Also in 1967 the shaft was extended to 970 feet, opening six levels with the deepest at 850 feet. The mill started production in April, 1967 and had a rated capacity of 700 tons per day. In the last part of 1967 financial difficulties hit the mine again and it went into receivership. By June, 1968, the mine was up for sale and in early 1969 Patrick Harrison Company Limited, a major bondholder and shareholder purchased the property.


All that glitters isn't gold - for northeast mining camps

Northern Daily News
Feb. 26,'99
By Rick Owen.

Traditionally this area of northeastern Ontario has been known for its gold-producing mines. The Adams Mine, which produced iron ore was an exception to the rule. The last time the gold market went soft many junior mining companies and prospectors turned their attention to diamonds. There was a diamond rush that went from the Tri-Towns right through to the James Bay lowlands. As gold recovered, interest in diamonds decreased and most prospectors and juniors turned their attention to gold. Now the price of gold has been low for an extended period of time and two very large gold projects, Sudbury Contact's Victoria Creek and Royal Oak's Matachewan project, have been shutdown.

The Armistice advanced gold exploration project is on care and maintenance while the company raises money to return underground. NFX is letting the Chaminis Mine flood and has taken Fort Knox Gold as its partner. The emphasis on this project is now surface drilling. Kinross Gold's Macassa Mine has had some new very exciting discoveries and is conducting development work that will lead to more diamond drilling and more production. Despite this, the mine is unable to produce enough ore to keep the mill running so it will go on standby for four months while ore is stockpiled. During the shutdown most of the mill workers will be reassigned at the mine and take holidays thus keeping layoffs to a minimum.

While all of this is happening there is a very serious base metal exploration project being conducted east of Matheson and north of Highway 101. Millstream Mines Ltd. is currently conducting a deep drilling program to explore the downward continuity of massive copper, zinc, cobalt zones 1,000 feet below what has already been confirmed by drilling. The assay results show the massive sulphide zones also have silver values that add to its value.

The company has hired on a consulting basis local geologist Dave Gamble to guide its exploration program and to date the results have been very exciting. The new steel on site ware house is one indication that this is no fly-by-night operation. Millstream is very serious about proving up enough ore to bring this property into production.

If the ore proves to be there, the company has a head start in getting the property into production. The old Potter Mine headframe is there and the shaft is sunk to a depth of 1,272 feet. Previously, mining took place down to the 1,100 foot level. As well, the property has a tailing pond on site and the foundations from the old mill are still in place. If enough economic ore body can be found at depth, the fact the headframe and shaft are already in place will greatly reduce development costs.

While it is premature to make predictions about the possibility of the former mine coming back into production, it is encouraging to know that Millstream is putting money into the ground and not just using the property to raise it share prices. Deep drilling is a difficult and long process so results from this phase of exploration will take time to be reported.

Despite the length of time the exploration takes, If Millstream is successful in bringing the Potter Mine back into production it will help the camp get through the lows in the gold market.


Millstream drills test Potter

The Northern Miner
August 31-September 6, 1998 pg.19

Junior Millstream Mines (MLSM-C) reports that a newly drilled deep hole at its Potter property near Matheson, Ont., has confirmed the continuity of a copper-zinc-cobalt zone.

Hole 98-6 intersected two separate zones of 26.76 metres (from 653.9 to 680.7 metres) averaging 2.57% copper, 1.68% zinc, 0.082% cobalt and 20.91 grams silver per tonne, and 8.7 metres (from 696.6 to 705.3 metres) averaging 3.39% copper, 0.8% zinc, 0.071 % cobalt and 22.97 grams silver. Both zones contained sub-intervals of higher-grade mineralization.

Millstream states that the shallower interval in hole 6 is along strike and dip with massive sulphide mineralization intersected in holes 97-9 and 98-1. The first of those earlier holes returned 22.9 metres (from 604.6 to 627.5 metres) of 2.65% copper, 2.7% zinc, 0.083% cobalt and 26.06 grams silver, whereas the second yielded 7.8 metres (from 695.1 to 702.9 metres) of 5.34% copper, 3.24% zinc, 0.067% cobalt and 39.77 grams silver.

The Potter deposit was mined from 1967 until 1971, when low copper prices forced the operation to close. Drilling has shown that the central portion of the sulphide system continues for at least 200 metres below the lowest underground workings.

In all, 11 holes have been drilled to test for strike and depth extensions to the deposit. The latest hole brings to five the number of successful holes reported from the program.


Millstream completes drilling

The Northern Miner
August 3-9, 1998

Toronto-based Millstream Mines (MLSM-C) has received final results from diamond drilling at its Potter base metal property near Matheson, Ont.

In total, 10 deep holes tested for depth and strike extensions to the formerly mined Potter deposit. Results were recently released from the final four holes, of which only one intersected potentially economic grades of mineralization. This increases to four the number of successful holes reported from the program.

Hole 98-5 intersected intervals of 3.6 metres (from 420.1 to 423.7 metres) grading 2.69% copper, 0.29% zinc, 0.08% cobalt and 16.8 grams silver per tonne, as well as 12.3 metres (from 507.4 to 519.7 metres) of 1.53% copper, 2.05% zinc, 0.13% cobalt and 14.4 grams silver. The latter interval included three smaller intervals of higher-grade mineralization.

Millstream says the deeper mineralized interval in hole 5 is on strike with a zone intersected in hole 97-8A. That zone averaged 1.72% copper, 4.93% zinc, 0.07% cobalt and 25.03 grams silver over 5.4 metres (from 489 to 494.4 metres). Mineralized intersections in stepout holes 98-2 to 98-4 were insignificant, suggesting they are part of a lateral halo of low-grade mineralization.

The Potter mine operated from 1967 until 1971, when low copper prices forced its closure. Drilling has shown that the central portion of the sulphide system continues below the lowest underground workings for at least 259 metres.

Mineralization is hosted by a mafic hyaloclastite unit (with layers of graphite) that strikes north westerly and dips steeply to the north.

The mineralization plunges steeply to the west.

In related news, Millstream has decided not to option 84 unpatented mining claims that abut the southern border of the Potter property.


Millstream buys Tamarack

The Northern Miner
July 13-19, 1998 pg.23

Junior Millstream Mines (MLSM-C) has picked up a 50.5% interest in the past-producing Tamarack gold property in southwestern Montana.

To earn its interest, the company must fund undisclosed exploration costs and pay US$176,000 in cash.

Included in the deal are mining equipment and two mills. One of the mills, built in the 1990, has a daily capacity of 60-100 tons. The other, older facility will be refurbished and used to process material from Millstream's nearby Uncle Sam gold property. Also a past producer, Uncle Sam is said to host 4,500 tons grading 0.44 oz. gold per ton.


Millstream nabs remainder of Potter property

The Northern Miner
May 4, 1998 pg.B15 BY STUART McDOUGALL

Toronto-based Millstream Mines (MLSM-C) has acquired the remaining interest in the Potter polymetallic property in Munro Twp., 80 km east of Timmins, Ont.

The junior paid a private vendor $3 million and issued a promissory note for the remainder of the $4.6-million price tag. As part of the deal, the vendor exercised 3 million previously acquired warrants at $1 each and will retain a 2.5% net smelter return royalty. Millstream has the option of purchasing the royalty for $3 million.

Millstream's initial work on the Potter property dates back to early 1996, when geophysical surveys were initiated to trace possible strike extensions of a mineralized horizon that was mined by previous owners up to 1971. While mineralization was intersected in follow-up drilling, results proved somewhat disappointing; the best intersection was 0.5 metre of 1.47% copper.

More recent work on the property has generated better success. Testing for mineralization below underground workings, six drill holes have outlined broad envelopes of sulphide-bearing mineralization containing narrower intervals enriched in copper, zinc, cobalt, sliver and minor gold. Mineralization is associated with a mafic fragmental unit with layers of graphite that strikes northwesterly and dips steeply to the north. The mineralization also plunges steeply to the west and is believed to thicken downdip.

The most recently drilled hole, 98-1, intersected three separate mineralized intervals ranging from 2.15 metres to 7.75 metres in width. The widest interval assayed 5.34% copper, 3.24% zinc 0.07% cobalt and 39.8 grams silver per tonne, while the narrowest of the three graded 2.95% copper, 5.42% zinc, 0.05% cobalt and 20.9 grams silver.

Hole 98-1 was collared 50 metres west of hole 97-10 to test a conductor outlined by borehole and surface geophysical surveys. A number of similar targets remain untested.

Millstream says a number of majors have approached it for a joint venture deal. The company will weigh the merits of such an arrangement against those of raising funds in the market, and will also consider a combination of the two.


Geophysics adds potential to Potter project

The Northern Miner
March 30-April 5, 1998 pg.3

An ongoing geophysical program at the Potter base metal property in Munro twp., 80 km east of Timmins, Ont., has provided numerous drill targets for owner Millstream Mines (MLSM-C).

Induced polarization (IP) surveys have been completed over a 1.44-sq.-km area centred on the past-producing Munro mine. The survey outlined strong chargeability and coincident low-resistivity anomalies extending along strike and beyond the old workings to the east and west. A deeply-rooted source for the anomalies is believed to lie west of the mine.

Geophysical consultant Quantec IP is carrying out the surveying, which is currently being extended to the east. This part of the program will use deeper-penetrating equipment to probe depths of up to 900 metres.

The company also plans to drill several conductors detected in a downhole geophysical survey of hole 97-10. Before it was terminated due to poor ground conditions, the hole intersected 113 metres (from a depth of 360.8 metres) of finely disseminated chalcopyrite, sphalerite and pyrrhotite. Several narrow intervals within the zone averaged up to 1.5% copper, 0.7% zinc and 0.07% cobalt.

Hole 97-11 hit 157.5 metres (from 355 metres) of continuous low-grade mineralization, within which several narrow intervals averaged up to 1.05% copper, 2.34% zinc and 0.03% cobalt. Results for the remainder of the hole are still pending.

As well, the company recalculated results from hole 97-8A (T.N. M., Jan.19-25/98) in order to include newly acquired cobalt assays. The results include: 1.5 metres (from 482.4 metres) of 0.136% cobalt, 3.62% copper, 3.19% zinc, 29.5 grams silver per tonne; 2.54 metres (from 491.8 metres) of 0.07% cobalt, 2.33% copper, 9.09% zinc and 37 grams silver; and 2 metres (from 504.2 metres) of 0.08% cobalt, 6.6% copper, 4.37% zinc and 65.5 grams silver. Minor gold values are also reported.


Millstream hits cobalt zone at Potter

The Northern Miner
March 9-15, 1998 pg.1
BY STUART MCDOUGALL

Junior Millstream Mines (MLSM-C) has intersected a zone of cobalt mineralization in a larger envelop of copper-zinc mineralization at its Potter property in Munro Twp., 80 km east of Timmins, Ont.

Results from the second hole, 97-9, include 22.9 metres, starting at a depth of 604.6 metres, grading 0.08% cobalt, 2.65% copper, 2.70% zinc and 26.1 grams silver per tonne. Within that interval, 9.4 metres returned 0.13% cobalt, 3.86% copper, 4.57% zinc, 1.12 grams silver and 0.89 gram gold.

The cobalt zone is part of a wider envelop of intermittent copper-zinc mineralization that extends a vertical depth of 251 metres below the lowest working level of the past-producing Munro mine. Within that envelope, hole 97-9 returned four separate, wide intervals of sulphide mineralization in the form of massive pyrrhotite and finely disseminated chalcopyrite and sphalerite. A portion of that mineralization has assayed up to 1.63% copper and 1.36% zinc over widths of up to 3 metres.

Millstream is currently re-analyzing some of the core from hole 97-9 for cobalt. It is also carrying out downhole geophysical work and an induced polarization (IP) survey on the entire property.

Mineralization at Potter is associated with a mafic fragmental unit, with layers of graphite, that strikes northwest and dips steeply to the north. Mineralization plunges steeply to the west and is believed to thicken downdip.

The deep-seated mineralization was first intersected in hole 97-8, which was collared 70 metres east of hole 97-9. As in the latter hole, several intervals of copper-zinc-silver mineralization were intersected below the lowest production level of the mine (TNM., Jan.19-25/98).

Three additional holes have recently been completed. All three intersected several zones of copper-zinc mineralization, however, results have not been released.

Millstream's success has not gone unnoticed. About 5 km east of Potter, Prism Resources (PRN-V) will shortly begin a combined stag magnetometer unit IP survey on its 1,500-ha McCool property, which reportedly covers stratigraphy comparable to that found at Potter.

Roughly 8 km southeast of Potter, Pelangio-Larder Mines (PLLM-C) is planning its own ground geophysical survey on a recently acquired property, also called McCool. The company believes the property overlies 3.5 km of stratigraphy said to be similar to that found at Potter.

Previous work at this McCool included an electromagnetic survey and limited drilling. One hole drilled to test an isolated geophysical anomaly intersected felsic intercalated with ultramafic and mafic units. The felsic volcanics contained minor chalcopyrite, 10% - 15% pyrrhotite and layers of graphite, while the ultramafics hosted minor chalcopyrite. Pelangio-Larder says it will follow up the geophysical survey with drilling.

Meanwhile, Barrier Mining (BMI-V) is teaming up with lnco (N-T) to search for sulphide deposits hear the huge Kidd Creek Mine of Falconbridge. The two firms have signed a deal that allows Barrier to earn a 100% interest in a 14,940 ha property, situated 5 km northwest of Kidd Creek. To earn its interest, Barrier must issue 600,000 shares to Inco and fund $3 million of Inco's exploration of the property over the next four years. Inco retains a back-in right to a 57.1% interest, which it can earn by spending $6 million on the property over a 5 year period immediately following the date the deal reaches maturity.

A program of 16 drill holes will shortly test several electromagnetic anomalies previously outlined by Inco.

The deal is subject to regulatory and other approvals.


Ore discovery prompts acquisition rush

The Daily Press March 6, 1998 pg.2
by Gregory Reynolds -
MATHESON/The Daily Press

The copper-zinc discovery of Millstream Mines Ltd. (MLSM-CDN) near here has companies scrambling to acquire ground in its vicinity.

Panterra Minerals Inc. has obtained an option on property in Munro Township immediately beside and on strike from the Potter Mine property.

Munro is part of the municipality of Black River-Matheson Township and the Potter Mine is 12 miles east of the community of Matheson.

Panterra has initiated bid tendering for a minimum 3000-foot diamond drilling program.

target selection has been completed with drilling expected in February.

Panterra said recent releases by Millstream indicate that significant grades and widths of copper-zinc mineralization were intersected in two diamond-drill holes drilled beneath levels previously mined.

The new copper-zinc discovery is less than one mile from Panterra's newly optioned property.

Rocks of the "Kidd Creek" assemblage underlie the property and are also host to the world class "Kidd Creek" deposit near Timmins, Panterra said.

Exploration on the Munro Prospect, as Panterra is calling its option, following staking has defined numerous high priority targets.

Geophysical and geological work completed over the last 12 months has highlighted three areas for initial testing by diamond drilling:

A small INPUT anomaly near the center of the property thought similar to the feature observed near the Potter Mine; this target has been resolved through recent ground surveys and extends across the middle of the claim block; several other geophysical features have been outlined north and south of the main INPUT target; The Centre Hill Fault, a northeast-southeast striking fault parallel to the Destor-Porcupine, Contact and Pipestone Faults to the south, each of which is associated with significant gold mineralization in the area;

The intersection of the northeast trending fault from the Croesus Mine with the area of the INPUT anomaly, and adjacent to a felsic intrusive will also be investigated.

Panterra says it is clearly encouraged by the new base metal discovery which, together with Cross Lake Minerals Ltd. program, and other activity demonstrates the high potential for further discoveries in the area.


Millstream Mines gets Surprising Results from mine

NORTHERN DAILY NEWS KIRKLAND LAKE & AREA
Wed., Feb. 11, 1998 pg. 3
By RICK OWEN
Northern Daily News

MATHESON- Millstream Mines Ltd. is getting surprising results at its Potter Mine base metal project. Millstream had a parts per million test done on some of the core from its first three diamond drill holes.

The holes were drilled below the deposit of the former base metal mine.

Ian Brodie-Brown, Millstream vice president, when cobalt turned up in a parts per million test, said it was decided to re-assay sections of the core testing for cobalt.

Hole S97-09 between the 604.6 and 627.5 metres returned the following values; 0.083 per cent cobalt, 2.65 per cent copper,2.7 per cent zinc and .76 ounces per ton silver.

This intersection included a section from 613.6 to 623.0 metres that returned the following values: 0.128 per cent cobalt, 3.86 per cent copper, 4.57 per cent zinc, 1.126 ounces per tonne silver and 0.023 ounces gold per tonne.

Millstream is currently having a diamond drill hole S97-09 assayed for cobalt.

A third hole about 430 feet west of the discovery hole encountered mineralization carrying sulphides before it was suspended due to directional drilling complications.

Millstream reports a fourth hole has been started to test at depth the projected mineralization beneath the first hole.

This hole has encountered mineralization zones and is nearing the target area. Millstream will release more information when this hole has been completed.

Mr. Brodie-Brown said it was a complete surprise to discover cobalt and on a price per ton it is the most valuable mineral encountered so far.

Cobalt is currently selling for about $25.50 U.S. a pound. Cobalt is used to strengthen steel and in ceramics.

Mr. Brodie-Brown said after the five holes in this round of exploration are completed the company will assess the results to determine future exploration targets.

The Potter Mine property is in Munro township, east of Matheson. Millstream has a 100 per cent unencumbered option on the property


Millstream cuts copper and zinc

The Northern Miner
Miner January 19-25,1998 pg.11

Toronto-based junior Millstream Mines (MLSM-C) has intersected several copper-zinc sulphide zones 100 metres below the lowest producing level at its Potter property in Munro Twp., 80 km east of Timmins, Ont.

Results from the first hole, 8A, are: 2.6 metres (from 482.4 to 485 metres) grading 2.46% copper, 1.88% zinc and 25.7 grams silver per tonne; 6.9 metres (488.4 to 494.9 metres) of 1.52% copper, 3.98% zinc and 21.9 grams silver; 3.6 metres (502.6 to 506.2 metres) of 3.74% copper, 2.49% zinc and 38.1 grams silver; 6.3 metres (537.4 to 543.7 metres) of 0.27% copper, 0.65% zinc and 4.11 grams silver.

A fifth zone, for which results are pending, was also intersected.

A second hole is being drilled 61 metres west of the first hole.

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