25,801,839 shares issued

 

NEWS RELEASE

Date: Aug. 17, 1998

MILLSTREAM MINES LTD. POTTER MINE PROPERTY

CURRENT WORK STATUS

 

Immediate Mine Area

 

The bottom level of the past mine workings is 1100 feet below surface and accessible via a vertical 3 compartment timber shaft, currently flooded. The workings and ore zones occurred basically west of the shaft. Three (3) separate ore zones were intersected and mined off the bottom level. It is the downward extension of these ore zones that the current Deep Drill Program was targeted to locate.

On July 17, 1998, Millstream reported that it had completed 10 Deep Drill Holes with four (4) holes successfully locating the downward extension of the ore zones with significant grades and width. As of this report the 11th Deep Drill Hole S98-06 has been drilled and has also intersected the ore downward extension. Management believes that at least four (4) more Deep Drill Holes targeted to intersect the ore downward extension at 1400+ feet and 1900+ feet below surface are required to justify the underground exploration program, as previously reported March 6, 1998.

Hole S98-06 (16+30W, 630S, Az 350, dip -60) cut two (2) massive Cu-Zn-Co sulphide intervals at 653.90 m to 680.66 m (26.76 m or 87.80 ft.) and 696.62 m to 705.70 m (8.68 m or 28.48 ft.) respectively. These intervals occur within a 104 m (341.22 ft.) continuous Cu-Zn-Co mineralized intersection. Assay results will be available with releases indicating the full geological picture.

Next Surface Drill Target Area

As previously reported, July 13, 1998, surface geology and geophysics have identified this blue sky, exploration target area. The first drill hole scheduled in this area will be drilled on section 5+25W, approximately 1000 metres east of the past mine area. The hole will dip at -60 degrees, azimuth 360 degree with a planned length of 800 metres. Detailed logging of the drill core, hole survey and Quantec Downhole Geophysics will be carried out upon the completion of the drilling of the hole. This critical information with the Quantec Real Section Geophysics of the area will allow an effective drill program to be designed and implemented.

Funding

Upon securing adequate funds the scheduled drill program will recommence with the drilling of Hole S98-07 in the next surface drill target area.

The Potter property is situated near the confluence of the Pipestone and Destor-Porcupine faults in the Archean Greenstone Belt and is comprised of 28 leased and patented claims and 10 optioned claims located in Munro Township 80 kms east of Timmins and 45 kms north of Kirkland Lake.

The principle objective or Millstream Mines Ltd. is to enhance and develop mineral properties to production potential. Millstream holds mineral claims or interests directly or through wholly owned subsidiaries in the Czech Republic, USA and Canada.

 

 

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No regulatory authority or similar body approved nor disapproved the information contained herein.