Mineral Mountain Resources Ltd. announces Duncastle Gold signs agreement for Pipestone Project acquisition in Northwest Ontario
Wednesday, Nov 14, 2012
Duncastle Gold Corp. ("Duncastle") (TSX VENTURE:DUN)(FRANKFURT:5D3) announced today that it has signed a letter of understanding with Mineral Mountain Resources Ltd. ("Mineral Mountain") (TSX VENTURE:MMV)(OTCQX:MNRLF) to acquire up to 100% of Mineral Mountain's Pipestone Project 60 kilometers northeast of Fort Frances in Northwest Ontario for shares, cash payments and exploration work commitments.
The Pipestone project consists of a large 344 square kilometer land position which is highly prospective for both high-grade and bulk-tonnage style gold mineralizing systems similar to that found at the nearby Rainy River (Rainy River Resources Ltd), Hammond Reef (Osisko Mining Corporation) and Cameron Lake (Coventry Resources Ltd) gold deposits.
The project is situated in a prime location at the junction of the Pipestone-Manitou Stretch Deformation Zone and the Helena-Pipestone Deformation Zone of which the latter can ultimately be traced for over 55 kilometers to the same geological setting that hosts the Rainy River gold deposit (4.41 Moz Au M+I). The Pipestone-Manitou Stretch Deformation Zone and its associated splays remain vastly underexplored and contain several drill ready and earlier stage gold targets including neighboring exploration projects at Manitou Gold's Gaffney Extension property and Kesselrun Resource's Bluffpoint property.
Previous work on the Pipestone project by Mineral Mountain Resources has returned numerous surface gold occurrences and mineralized drill intercepts throughout the property including a coherent, shallowly dipping zone of disseminated gold mineralization within the Lawrence Lake Batholith at the Pine Centre prospect.
Nelson Baker, President and CEO of Mineral Mountain commented: "We are delighted to have Duncastle Gold, with the Manex Resource Group and their strong team of explorers, continue the search for a large gold resource in this regionally complex greenstone belt."
President Michael Rowley commented: "Duncastle is very pleased with the option to acquire 100% of the Pipestone project as our second and most significant acquisition in Ontario to date. We believe that the property has true multi-million ounce gold potential based on the regional metallogeny, and a clear initial target for drill follow-up at the Pine Centre prospect with potential for significant expansion along strike and down dip. In addition there are numerous other targets in several geological settings throughout the very large property. The location is excellent and access by existing roads is year-round."