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Mineral Mountain uncovers new 5km-long gold corridor at Shining Tree

Published: 16:20 30 Aug 2011 BST

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Mineral Mountain Resources (CVE:MMV) said Tuesday that it has found a new north-south five kilometre-long gold corridor under till cover in an unexplored area, on Block A, part of its joint venture Shining Tree project in Ontario.

The new find, which is located 1.3 kilometres southeast of the Cook Zone, is hosted in a 300 meter wide package of rocks, with above average near surface gold potential and higher grade mineralization intersected at depth.

According to results from a combined 64-hole reverse circulation and pit sampling program, drilling identified a fertile N-S gold corridor resting in the northern part of Block A, which is up to five kilometres long, spanning about 200 to 600 meters wide. The company said the gold corridor may be host to a cluster of yet-to-be discovered gold zones.

Mineral Mountain, a publicly traded company, said it found two distinct gold dispersal trains with larger than normal gold grains in the new corridor.

Eleven reverse circulation (RC) drill holes intersected gold-anomalous, fuchsite-rich quartz-carbonate, it added.

According to the company, the RC sampling technique proved to be "highly effective" in identifying and pinpointing the best gold zones within large gold systems.

Mineral Mountain said that seven diamond drill sections, spaced 0.5 kilometres apart, for a total of 28 holes, or 7,000 meters, is recommended to properly test the prospective gold corridor.

"The strong, extensive gold grain anomaly in the till, especially in an area not previously explored, represents potentially a significant new gold horizon hosting multiple gold zones," said CEO, Nelson Baker.

"Having used this RC sampling technique successfully with Rainy River Resources Limited, we are planning to aggressively drill test this corridor.”

As part of its joint venture agreement, Mineral Mountain shelled-out $50,000 in cash to Golden Harp and spent an extra $1 million in exploration costs before March 2014, boosting its stake to 70% in the Block A portion of property.

Going forward, a joint venture will be formed where Mineral Mountain will have an initial interest of 70%, with Golden Harp holding the remaining stake.

The Vancouver-based company’s shares traded at $0.57 cents per share Tuesday on the Toronto Stock Exchange.

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