MLM (TSX-V)
 
Potter Airport Airport East Tamarack Summary
  

TAMARACK SUMMARY (Uncle Sam below)

Gold Tails in the Pan

New Adit

NI 43101 Report (click to view report)

Youtube Movie of Bulk Sample Mill testing, Underground Expedition and a Gold Pour:

http://www.youtube.com/watch?v=2lDgk6epBwo

Property Synopsis

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 a well maintained gravel road.

The associated assets include a 60 tons per day mill that has been refurbished and is now running in order to improve gold recoveries (Quiktime Clip). The crushing and grinding circuit, electrics, piping, flow cells, and a full size Deister gravity table are in place. Additional associated assets are tailings disposal ponds (Quiktime Clip), 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 is now delivering power via the electrical utility, NorthWestern Energy.

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."

In the early 1990’s, Goldfields Mining Corporation investigated  the property in search of a potential large open pit gold operation. In Goldfield’s investigation they drilled 11 reverse circulation (RC) holes with reported assays and concluded that the property did not meet their criteria. Of special significance in these drilling results is their hole “TR-2” which returned assays of 0.244 oz gold per ton over a 100 ft. interval.

Millstream has acquired 100% of the Tamarack, lode gold bearing, Property and its associated assets. The Property is located in the south western part of the State of Montana, U.S.A. near the town of Sheridan.

Millstream has purchased its 100% undivided interest with cash payments of U.S. $476,500. Additionally, Millstream has supplied all the funding needed to advance the Tamarack Property to the stage of production that now exists. Millstream will receive 100% of all net revenues from the Tamarack Property going forward outside of a small 0.5% NSR on the gold output alone.

Subsequently, a surface decline (Az 103 deg) was collared on an exposed vein and followed downward at approximately –15%. A branch drift off the decline successfully located DDH04-01 underground and exposed a rich gold mineralized zone appearing to strike NE-SW and dipping west. The branch drift reported being consistently mineralized with channel samples taken at various locations assaying 10.84 gold opt over 7 feet, 0.45 gold opt over 8 feet, and 0.50 gold opt over 1.2 feet. The back of this branch drift started to spall and caved before it could be properly supported. The decline was continued downward in a spiral path to intersect at depth this rich gold zone. It intersected a 3 foot wide Lead-Zinc vein striking NE-SW (parallel to the gold zone but dipping east), yielding assay results from a 2 foot horizontal channel sample of 29.88% lead per ton and 19.42 silver opt. The Lead-Zinc vein footwall contacts a fault dipping east lying against a porphyry. The decline continued through the fault and porphyry encountering a rich gold bearing zone striking NE-SW, dipping west. The start of this gold zone is approximately 27 feet below and 40 feet east of the gold zone located by DDH04-01. A panel 10ft. high by 10ft. wide was sampled cutting channels at 1 foot intervals on the face from top to bottom returned a composite sample assay of 0.758 gold opt and 0.48 silver opt. It was decided to continue the decline downward on the Lead-Zinc vein on the east side of the porphyry and excavate through the gold zone as a horizontal branch drift. In 2008, the rich gold zone has been exposed for a horizontal distance of approximately 50 feet of gold bearing material cutting across the zone strike, but yet to reach the west contact. The decline on the Lead-Zinc vein after advancing 12 feet in a southerly direction showed a 2 foot wide section of fault gauge material laying against the right side (footwall against the porphyry) of the Lead-zinc vein returned assays of 0.308 gold opt, 0.24 silver opt, 0.069% lead and 0.203% zinc. The decline on the Lead-Zinc vein was advanced 35 feet and a crosscut drift (branch) started with the intentions to pass through the porphyry to intersect the rich gold zone on the west side of the porphyry.

All of this current work is in a relatively unrecorded and unexplored underground area of the property. The ground magnetic geophysics surveys in 2008 over the property identified six (6) potential targets. The underground decline and branch drifts are working in and around the smallest identified magnetic target with encouraging results.

During the above periods the mill was refurbished with the anticipated capability to treat 100 tons per day, but in actual operating mode is limited to 60 tons per day. The tailings pond was completed with environmental approval and a reclamation bond posted. The mill completed the tune-up phase and commenced processing underground and surface stockpile material on a single shift averaging throughput of 20 tons per day with gold recoveries ranging from mid 80% to mid 90%. The surface stockpile material assayed 0.30 to 0.40 gold oz/ton. Considerable dilution occurred due to the stockpile area and the primary crushing facility not being covered and being exposed to adverse weather conditions which also impeded continual processing.

Currently, the underground work and the milling operations are suspended until further funding has been raised. Minor metallurgical test work is being carried out to facilitate the gold winning from the concentrates produced from the gravity table and the flotation circuit.   

The Company has designed an initial work program to up-grade the mine plant to process 100 tons per day upon completion. The program as designed will enhance the control of the mined material such that the gold grade dilution factor will be greatly eliminated. Furthermore, the primary crushing, the ball mills, gravity and flotation recovery systems will all be more efficient resulting in maximum gold recovery. During the surface up-grade activities the underground mine works will establish a secondary mine exit per the requirements of MSHA; rock bolt and shotcrete selected areas and advance the workings producing stockpiled material as future feed for milling. Upon the completion of the initial work program the operations will be put on a three shift per day basis and process 100 tons per day, five days per week.

(click here to see latest mag survey over mine area and underground workings)

UNCLE SAM SUMMARY

The Property is a high grade, former gold producer in the Tobacco Root Mountains, Madison County, Montana.  The Property, accessible year round on a maintained gravel road, is situated ten (10) miles to the east of Sheridan, Montana and just 6 miles to the east of the Tamarack Gold Property (see PR Sept. 19, 2006). Detailed geophysical, geochemical and geological surveys have extended the previous workings to cover a gold/graphite bearing structure over 8,000 feet long.  The investigation has indicated the presence of other lode gold occurrences associated with the known mineralized Uncle Sam Fault zone.  All previous mining has come within or at the Uncle Sam Fault over a width of three (3) to ten (10) feet, adjacent to a competent hanging wall porphyry , that is part of a Fault zone about sixty (60) feet in true thickness.

In the past, (see PR Sept. 9, 1996) Millstream investigated, surveyed and sampled the Property underground workings and surface waste piles. The samples collected and tagged were sent for assaying at Assay Lab, Inc., West Jordan, Utah, USA, Norris Lab., Norris, Montana, USA and Swastika Laboratories, Swastika, Ontario, Canada.  Samples taken from the hanging wall assayed at 36.2 grams (1.164oz) of gold and 82.7 grams (2.66 oz) of silver per ton.  Vein material assayed at 16.04 grams (0.516 oz) of gold and 15.24 grams (0.49 oz) of silver per ton with minor lead and zinc values. The following chart of assays (see PR Aug. 15, 1997) was derived from samples taken from a combination of channels (cs), wall chips (wcs), and channel trenches in broken ore (cts): 

Sample No. Au(opt)   Ag(opt)  Sample Length(ft.)

Sample Type

223259      1.212  5.7    17.0   cts
223260      1.740 2.43  17.0 cts
223261 0.013   0.09   15.0  cts
223262 0.051 0.10  29.0  cts
223263   0.793  1.22  40.0 cts
223264   0.345  0.59  40.0 cts
223265 0.420 0.48    11.0  cts
223266   0.836   0.75 10.0       cs
223267    0.414 0.64   wcs
223268 0.074 0.15    wcs
223269 0.054   0.22 30.0 cs
223270 1.141 1.67    wcs
223271 0.062  0.11   wcs
223272  0.114  0.34 15.0  cs
223273  0.031 0.35  25.0 cs
223274  0.714 1.09    wcs
223275   0.308 0.54 15.0 cs 
223276 0.184  0.67    wcs
223277 0.559 0.26   wcs

  Millstream’s 50% interest is fully vested based on consideration that it has completed a substantial amount of development work and exploration expenditures on the property in the past.

 

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