Mineral Mountain Signs an Exploration Agreement With Option to Purchase the Historic Standby Gold Mine Property With G&D Gold Mining Company
VANCOUVER, Sep 12, 2016 - Mineral Mountain Resources Ltd. ("Mineral Mountain" or the "Company") (TSX VENTURE:MMV) is pleased to announce that the Company has signed an Exploration Agreement With Option To Purchase (the "Option Agreement) the historic Standby Gold Mine Property consisting of 9 contiguous patented claims totaling 67.45 acres (the "Standby Property") from G & D Gold Mining Co., ("G&D Gold") a South Dakota corporation. The Company believes that the optioned claims represent a potentially important addition to the Company's substantial land holdings in the Rochford Gold District and, in particular, provides an immediate focus for future exploration. This acquisition adds approximately 1.5 km of strike length to the north end of the Standby-Bloody Gulch-Lookout Mine structural corridor that is considered to be highly prospective for iron-hosted gold mineralization. In 1879, the historic Standby Gold Mine, located on the Standby Property and about 26 km south of the Homestake Gold Mine in Lead, South Dakota, was comprised of a series of several small pits, as well as underground exploratory drifts accessed on a number of levels by shafts and adits to a depth of 425-ft. The historic mine, which had a 40-stamp mill, used a flume to divert water and create power. This mine and mill contributed to much of the town of Rochford's growth in the late 1800's which at one time was estimated to have a population of about 1,000 people.
Historic workings were concentrated in the outcropping position of the head of the southward-plunging, structurally thickened and sheared Standby syncline, within Rochford iron formation. Indications from historic pit sampling and from underground sampling are that the poorly explored trough of the syncline, and particularly the west limb of the syncline, host higher concentrations, yet these areas have not been explored to depth along the plunge of the Standby syncline and its associated major shear structures. This target area, comprising at least 1.5 km of plunge extent, is the prime focus of Mineral Mountain's planned exploration on the Standby Mine portion of the Rochford Project.
Terms of the Option Agreement
Under the Option Agreement, the Company has been granted a 3-year Option pursuant to which it may acquire the Standby Property by paying G & D Gold a total of US$500,000 according to the following schedule:
First Payment- Upon execution of the Option Agreement and the date of receipt of the TSX Venture Exchange approval of this transaction (the "Effective Date") -US$150,000;
Second Payment- On or before the 12 month anniversary of the Effective Date - US$100,000;
Third Payment - On or before the 24 month anniversary of the Effective Date - US$100,000; and
Fourth Payment- On or before the 36 month anniversary of the Effective Date - US$150,000.
Royalties
Upon Mineral Mountain exercising its option to purchase the Standby Property, it is to grant G & D Gold a 2% net smelter returns royalty on the Standby Property. The Company shall thereafter have the right to purchase up to one-half, or 1% of G & D Gold's 2% net smelter returns royalty interest for US$1,500,000. Closing of this transaction is subject to receipt of any requisite TSX Venture Exchange approval.
Qualified Persons
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Nelson W. Baker, P.Eng., the President and CEO of Mineral Mountain Resources Ltd. and a Qualified Person for this project. All exploration activities at the Rochford Project are carried out under the supervision of Kevin Leonard, P.Geo., also a Qualified Person for this project.
About Mineral Mountain and the Rochford Project
Mineral Mountain Resources Ltd., through its wholly owned subsidiary Mineral Mountain Resources (SD) Inc., is focused on the exploration and, if warranted, the development of its 100%-owned Rochford Project situated along the highly prospective Homestake Gold Belt in the Black Hills of South Dakota, U.S.A. The Rochford Project covers approximately 5,500 acres and straddles several bands of auriferous iron formation over a 9 km strike length.
The Rochford Project is located near Rapid City where it is easily accessed by a network of roads and has hydro-electricity and modern internet services to the drill sites. As well, the area offers a skilled labor force and is one of the lowest cost exploration areas in the United States. South Dakota has a low political risk and embraces responsible mineral development.
On Behalf of the Board of Directors
Mineral Mountain Resources Ltd.
"Nelson W. Baker", President and CEO
Forward looking information
This release contains "forward-looking information" within the meaning of applicable Canadian securities legislation ("Forward-looking information"). Forward-looking information includes, but is not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion, growth of the Company's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.
Often, but not always, forward-looking information can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate" or "belief" or describes a "goal" or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking information is based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information .
Contact
Mineral Mountain Resources Ltd.
Brad Baker, Vice-President Corporate Development & Director
(778) 383-3975
bbaker@mineralmtn.com
www.mineralmtn.com