Young-Shannon Commences Drilling Program to Test Extension of High Grade Gold Zones at McMillan Gold Mine Property
29 April 2008 - 2:00AM
Marketwired
TORONTO, ONTARIO (the "Company") reports that a diamond drill
has commenced coring on the Company's McMillan Gold Mine
("McMillan") optioned property located near the town of Espanola in
northern Ontario, Canada. The drilling program will consist of a
minimum of five diamond drill holes comprising 5,576 ft. (1,700
metres). This campaign will have the objective of continuing to
define further extensions of the high grade gold values intersected
in drilling campaigns on the property in 2004 through to 2007 (see
Young-Shannon's Press Releases of May 31, 2006 and March 01,
2007).
Assay results from drill core in hole MM-05-13 intersected a
zone which averaged down hole grades and widths of 7.21 g/t gold
over 21.3 metres, including sections of 8.12 g/t gold over 4.60
metres, and 14.96 g/t gold over 8.60 metres, including 22.65 g/t
gold over 4.70 metres, 27.72 g/t gold over 3.10 metres, and 35.70
g/t gold over 2.10 metres.
This gold zone, combined with the high grade gold intersected in
diamond drill holes MM-06-01, MM-05-05, and MM-05-06 sequentially
eastward along strike defines a strike length of high grade gold
mineralization of at least 550 ft. (168 m ), which remains open in
all directions.
A second objective of this drilling campaign will be to
investigate still untested geophysical targets generated from the
down hole induced polarization ("IP") survey completed in 2005. The
down hole IP geophysical from 2005 successfully identified the
target which led to the intersections of high grade gold in drill
holes MM-06-01, MM-05-05, and particularly MM-05-13.
One of planned drill holes will test a geophysical target
occurring approximately 425 ft. (130 m.) west of the historic
underground workings at the McMillan Mine. Another drill hole will
test a geophysical target occurring approximately 165 ft (50 m)
eastward along strike from the high grade gold values intersected
in drill hole MM-05-13. Additional drilling on this campaign will
test an IP chargeability high occurring approximately 100 ft. (30
m) westward along strike from the high grade gold values
intersected in drill hole MM-1B-04 (drilled by MBMI Resources
Inc.). This feature has supporting evidence from a Vertical Loop
Electromagnetic (EM) geophysical survey completed in 1996 on the
property, but which was never tested.
At least two drill holes on this campaign will test favourable
geological targets on the property. One drill hole will test the
down dip and westward strike extension of the historic gold ore
zone of the McMillan Gold Mine beneath the underground workings.
There is a strong likelihood that the high grade gold values
intersected approximately 440 metres down hole in drill hole
MM-06-01 from the 2007 drilling campaign were the down dip
extension of this ore zone. This planned drill hole would test the
strike of the gold values in MM-06-01 at the same depth from
surface but approximately 250 ft. (75 m) to the west.
A second geologic target planned to be drill tested at depth is
a surface exposure approximately 100 ft. (30 m) across strike of
intense epithermal/mesothermal quartz veining hosted by similar
lithologies, and lying approximately 1,000 ft. (305 m) west, of the
historic McMillan Mine workings.
Gold was first discovered on the McMillan property in the early
1920's. Shaft sinking and underground exploration were carried out
in the late 1920's, with the shaft reaching 900 feet in depth. A
125 ton per day mill was subsequently built and operated until
1937. The mine produced 60,000 tons of ore at a recovered grade of
0.18 ounces per ton. Historical records indicate that
mineralization continued below the 900 foot level, but a grade of
0.20 ounces per ton was considered uneconomic at that time. In
1985/86 the mine was dewatered and sampled underground. Sampling
from different underground stopes ranged from 0.07 ounces per ton
to 0.48 ounces per ton. Based on these results, a work program
consisting of underground diamond drilling to determine vein
continuity, and to locate areas of undeveloped gold bearing zones
was recommended at that time. However, due to lack of funding, the
program was not carried out. The April 2004 program of diamond
drilling was based on results of the 1985/86 sampling program, and
on testing geophysical targets from a 1996 Vertical Loop
Electromagnetic (EM) geophysical survey that may indicate
extensions to the mine area.
The McMillan Gold Mine property claims comprise 34 unpatented
mining claim units in Mongowin and McKinnon townships, located
approximately 14 kilometres south of the town of Espanola, Ontario
on the north shore of House Lake.
Young-Shannon's option agreement with MBMI Resources Inc. was
entered into in November, 2004 and enables the Company to earn a
50% interest in the McMillan property over a three year period for
staged payments of $75,000 in cash and 650,000 common shares plus a
three year work commitment of $900,000. Upon completion of this
drilling program Young-Shannon should have fulfilled its work
commitment on the property to exercise its option and to have
earned its 50% carried interest in the property. Young-Shannon has
the option to increase its interest to 60% by issuing an additional
250,000 common shares and spending $400,000 more on the
property.
Young-Shannon Gold Mines, Limited is a precious metals
exploration company which holds a group of 11 patented and 18
unpatented claims within Chester Township located west of Highway
144 midway between Sudbury and Timmins, Ontario. It has an option
to earn a 60 % interest in the McMillan Gold Mine property, located
75 kilometres southwest of the Greater City of Sudbury, and it also
has an option to earn a 70% interest in the M-18 gold property in
Argentina. The Company has 53,803,828 common shares outstanding and
is listed on the TSX Venture Exchange under the symbol GYS.
Greg Lipton, P. Geo. is the qualified person for the Company as
required under National Instrument 43-101. He is a member of the
Association of Professional Geoscientists of Ontario (APGO).
This press release contains certain forward-looking statements.
While these forward-looking statements represent our best current
judgment, they are subject to a variety of risks and uncertainties
that are beyond the company's ability to control or predict and
which could cause actual events or results to differ materially
from those anticipated in such forward-looking statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
No stock exchange, securities commission or other regulatory
authority have approved or disapproved the information contained
herein.
Contacts: Young-Shannon Gold Mines, Limited Greg Lipton
President (416) 861-8351 (416) 867-2298 (FAX) Email:
greg.lipton@youngshannon.com Website: www.youngshannon.com
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