25,801,839 shares issued  

NEWS RELEASE

Date: Aug. 24, 1998

Millstream Mines Ltd. continues to expand discovery

on its Potter Mine Property by latest Drill Hole S98-06.

 

9.59 meter (31.46 ft.) Intersection returned assays

of 5.01% Cu, 2.63% Zn, 0.131 Co and 1.09 oz Ag.

 

Millstream Mines Ltd. Is pleased to announce further drill results on its Potter Mine Property located near Matheson, Ontario, Canada, and a partial summary of the massive sulphide ("MASU") Cu-Zn-Co intervals below the bottom level of the past mine workings.

Hole S98-06

Hole S98-06 (16+30W, 630S, Az350, dip-60) was targeted to test the continuity of the mineralized Cu-Zn-Co system midway (strike and depth) between the MASU intervals of holes S97-09 and S98-01 previously drilled. Hole S98-06 intersected two (2) MASU Cu-Zn-Co intervals downhole at 653.90 m to 680.66 m and 696.62 m to 705.30 m respectively. The first interval appearing to be the continuity targeted. Assays received for these two intervals are as follows:

Spot Commodity Prices (Aug 20,98):

Copper (US$/lb): $0.77

Zinc (US$/lb): $0.52

Silver (US$/oz): $5.20

Gold (US$/oz): $285.30

Cobalt (US$/lb): $22.00

 

US$ - $1.53 CDN

Hole S98-06

 

1st. Interval

Meters

Core Length

(M) (Ft.)

Cu

(%)

Zn

(%)

Co

(%)

Ag

(oz/T)

Gross Value

(U$/ton) (C$/ton)

653.90 - 680.66

26.76 / 87.80

2.57

1.68

0.082

0.61

96.30 / 147.34

Incl.

           

653.96 - 665.50

11.60 / 38.06

4.34

2.18

0.122

0.94

148.08 / 226.56

653.90 - 663.49

9.59 / 31.46

5.01

2.63

0.131

1.09

167.81 / 256.75

2nd. Interval

           

696.62 - 705.30

8.68 / 28.48

3.39

0.80

0.071

0.67

95.25 / 145.73

Incl.

           

696.62 - 703.00

6.38 / 20.93

4.46

1.06

0.094

0.89

125.69 / 192.31

   

SUMMARY OF MASU ORE INTERVALS IN DRILL HOLES PROGRESSING WEST AND DEEPER FROM DRILL HOLE S97-08A.

 

Drill

Hole

(#)

MASU

Interval

Meters

Core Length

 

(M) (Ft.)

Cu

 

(%)

Zn

 

(%)

Co

 

(%)

Ag

 

(oz/t)

Gross Value

(1)

(US$/ton) (C$/ton)

S97-08A

489.00-494.40

5.40 17.70

1.72

4.93

0.073

0.73

113.68 173.93

S98-05

507.40-519.70

12.30 40.36

1.53

2.05

0.131

0.42

104.70 160.19

S97-09

604.60-627.50

22.90 75.13

2.65

2.70

0.083

0.76

109.36 167.32

S98-06

653.90-680.66

26.76 87.80

2.57

1.68

0.082

0.61

96.30 147.34

S98-01

695.15-702.90

7.75 25.40

5.34

3.24

0.067

1.16

151.45 231.72

   

GOLD ASSAYS NOT INCLUDED

(1) Gross Value based on Aug. 20, 1998 spot commodity prices.

 

SUMMARY: Vertical depth of ore zone intersections with calculated gross values/ton.

 

Drill

Hole

(#)

Ore Interval

Core Length

(M) (Ft.)

Vertical

Depth (2)

(M) (Ft.)

Gross Value

 

(C$/ton) (1)

S97-08A

5.40 / 17.70

425.8 / 1397.2

173.93

S98-05

12.30 / 40.36

444.7 / 1459.2

160.19

S97-09

22.90 / 75.13

533.5 / 1750.4

167.32

S98-06

26.76 / 87.80

578.1 / 1896.1

147.34

S98-01

7.75 25.40

605.4 / 1986.2

231.72

 

75.11 / 246.39

   

 

  1. Vertical depth from surface to the mid pierce point of the ore zone intersection.

Weighted average value/ton of above = $ 166.15

Mathematical average ore interval of above = 15.02 m or 49.28 ft.

The Deep Drill program objective in the immediate mine area is to establish the ore horizon at various depths below the bottom level of the past mine workings at 325.3 m or 1100 ft. from surface.

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.