Mill City targets Tyranite after share consolidation

The company, formerly called Mill City Gold, consolidated its issued and outstanding common shares and Class B preferred shares on a one-for-10 basis.

Mill City plans to concentrate its near-term exploration efforts on the Tyranite gold property, south of Timmins, Ont., and the 72-claim Tinta Hill property in the Whitehorse mining division in the Yukon Territory.

Underground exploration and bulk sampling programs designed to bring ore reserves to the mineable category, are planned at Tyranite where a headframe and assay lab have been constructed and where dewatering of an old mine shaft has been completed. Mill City and Gunnar Gold (TSE) can earn a 50% interest by spending $5 million by August, 1990.

Exploration drifting, supported by drilling, will explore the on-strike and down-dip extensions of the dominant gold-bearing structure of the mine, according to spokesman Ray Gilbert.

“Geologic interpretation of the area of the old workings has shown strong evidence that ore shoots continue laterally and downward below the lowest workings,” he said.

Mill City can earn a 100% interest in the Tinta Hill silver, lead, zinc, copper and gold claims near Carmacks, Y.T. A vein hosting massive sulphides has been intersected by the first five holes of a 4,000-ft program.

The program is designed to define a main vein structure which has already been delineated over a 11,500-ft strike length and drilled to a depth of 650 ft. “The average width of the structure is 5.3 ft,” said Gilbert.

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