25,801,839 shares issued  

NEWS RELEASE

Date: July 17, 1998

MILLSTREAM MINES LTD. ANNOUNCES CONTINUING DISCOVERY

ON THE POTTER MINE PROJECT- HOLE #S98-05

 

Millstream is pleased to announce further drill results from the successful Deep Drill program on the Company's Potter Mine Property located near Matheson, Ontario. The Deep Drill program consist of 10 diamond drill holes designed to test the down-dip and on-strike extensions of the known mineralized horizons on the property. The table below summarizes the high-value intervals from the Deep Drill program. All mineralized zones identified to date remain open along strike and at depth.

Hole S98-05

Hole S98-05 (15+85W, 575S, Az 350, dip-60) was targeted to test the continuity of the mineralized Cu-Zn-Co system to 200+ feet west of the massive sulphides (MASU) of previously drilled hole #S97-08A (reported Dec. 23, '97). The drill hole intersected two massive Cu-Zn-Co sulphide intervals downhole respectively at 420.12 meters (1378.4 ft.) to 423.75 meters (1390.3 ft.) and 507.4 meters (1664.8 ft.) to 519.7 meters (1705.1 ft.). The 2nd interval is approximately 1450 feet vertically down from the surface elevation similar to the intersection elevation of hole #S97-08A and along strike.

 

Spot Commodity Prices (Jul 16,98):

 

Copper (US$/lb):

$0.76

Zinc (US$/lb):

$0.47

Silver (US$/oz):

$5.34

Gold (US$/oz):

$293.25

Cobalt (US$/lb):

$23.00

US$ -

$1.49 CDN

 

Hole S98-05

 

Interval

Meters

Core Length

(M) (Ft.)

Cu

(%T)

Zn

(%T)

Co

(%T)

Ag

(oz/T)

Gross Value

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

420.12-423.75

3.63 11.9

2.69

0.29

0.079

0.49

82.58 123.04

507.40-519.70

12.3 40.4

1.53

2.05

0.131

0.42

105.03 156.49

Incl.

            

513.00-519.70

6.70 22.0

2.14

2.47

0.174

0.58

138.89 206.95

515.00-519.70

4.70 15.4

2.54

3.38

0.168

0.70

151.40 225.59

516.00-519.70

3.70 12.1

2.75

3.74

0.165

0.73

156.76 233.57

 

Hole S98-01

 

695.15-702.9

7.75 25.4

5.34

3.24

0.067

1.16

148.64 221.47

 

Hole S97-09

 

604.60-627.5

22.90 75.13

2.65

2.70

0.083

0.76

107.90 160.77

 

Hole S97-08A

 

489.00-494.4

5.40 17.7

1.72

4.93

0.073

0.73

109.96 163.84

 

Gold assays not included

 

An objective of the Deep Drill program in the immediate mine area is to establish the ore horizon at various depths below the bottom level of the past mine workings. To date this has been very successful having four (4) out of the ten (10) holes drilled intersecting the ore zones as summarized below:

 

Diamond

Drill Hole

(#)

Vertical

Depth

(m) (ft.)

Ore Interval

Core Length

(m) (ft.)

Calculated

Gross Value

CAD$/Ton

S97-08A

425.8 1397.2

5.40 17.70

$ 163.84

S98-05

444.7 1459.2

12.30 40.36

$ 156.49

S97-09

533.5 1750.4

22.90 75.13

$ 160.77

S98-01

605.4 1986.2

7.75 25.40

$ 221.47

48.35 158.59

 

Weighted Average Value/Ton of Above = $169.84

Math. Average Ore Interval of Above = 12.09 m or 39.65 ft.

 

Gross Value based on July 16,'98 spot commodity prices.

Vertical Depth is from surface to the pierce point of the middle of the ore zone intersection.

Upon substantial additional diamond drilling and further MASU intersections the configuration and geometry of the ore zones will become more definitive and allow meaningful calculations to be performed by qualified personnel.

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.