Red Mile Minerals Intersects 23.8 g Gold at Its Blue Quartz Property in Beatty Township, Near Timmins, Ontario
July 21 2010 - 9:00AM
Marketwired Canada
Red Mile Minerals Corp. (TSX VENTURE:RDM) "Red Mile" is pleased to announce the
results of gold assaying from a four hole, 1500 meter, diamond drilling program
(see NR's May 10, 2010 and June 9, 2010), testing the Blue Quartz gold property
located in Beatty Township 70 kilometers east of Timmins, Ontario and 15
kilometers northwest of the operating Black Fox (formerly Glimmer) gold mine.
Summary
Four drill holes tested the area of the 'Blue Quartz' mine for gold-bearing
quartz veins. Significant results include intersections of:
5.3 g/t Au over 2.8 meters in RBQ-10-01
23.8 g/t Au over 1.0 meter included within 11.9 g/t Au over 2.80 meters in RBQ-10-02
57.4 g/t Au over 0.2 meters included within 1.6 g/t Au over 9.1 meters in RBQ-10-03.
Discussion
The Blue Quartz Property straddles the northwest trending Painkiller Fault; a
splay from the Destor Porcupine Fault Zone regarded as the primary control to
gold mineralization in the region. The property was mined between 1913 and 1934
with gold produced from two veins: the 'Blue Quartz vein' and the 'No. 2 vein'.
No modern exploration work has been performed testing the potential for
along-strike or down-dip continuation of these veins. Red Mile has the right to
earn 100% of the Blue Quartz Property (the "Property") under the terms of an
Option and Assignment Agreement dated September 1st, 2008.
The 4-hole drill program tested the gold potential of the Blue Quartz vein and
No. 2 vein along strike and down dip from the historical Blue Quartz mine
workings developed on these veins. Drill hole collar, azimuth, dip, and hole
length information was reported previously (see NR June 9th, 2010).
RBQ-10-01 intersected the Blue Quartz vein containing pyrite, arsenopyrite, and
sphalerite 150 meters along strike and to the west of previous workings. No
significant assays were returned. The main No. 2 vein was intersected 50 meters
down dip and directly beneath the western extent of the former mine workings.
The vein consisted of pyrite in a quartz chlorite matrix, and assayed 5.3 g/t Au
over 2.3 meters. A subsidiary vein system, intersected approximately 40 meters
up dip, assayed 0.6 g/t Au over 4.2 meters, and will be referred to as the No.
2a vein.
RBQ-10-02 intersected the Blue Quartz vein 125 meters along strike from the
historic workings, however, no significant assays were returned. The No. 2 vein
assayed 23.8 g/t Au over 1.0 meter included within 11.9 g/t Au over 2.2 meters,
and a broader interval of 1.83 g/t Au of 20.8 meters. The vein was intersected
100 meters down dip from the former mine workings (including BQ-89-12 - 1.06 g/t
Au over 25.6 m), and 40 meters below a historic drill intersection (RBQ-90-18)
that returned values of 0.86 g/t Au over 75.6 meters.
RBQ-10-03 intersected the Blue Quartz vein 25 meters up dip of RBQ-10-02. No
significant assays were returned. The No. 2 vein was intersected from 319-340
meters down hole and 60 meters up dip of RBQ-10-02. Here, a quartz, chlorite
pyrite zone was intersected over 0.2 meters and returned 57.4 g/t Au within a
broader zone of 1.6 g/t Au over 9.1 meters.
RBQ-10-04 intersected the No. 2 vein which assayed 1.5 g/t Au over 4.0 meters.
The No. 2 vein intersection is 40 meters along-strike to the west of the former
mine workings and between levels.
John Hickey, Red Mile's President and CEO commented: "We are pleased that the
drill program has confirmed gold mineralization on the Blue Quartz property.
Management will further analyze the data and consider the future exploration
strategy for the property."
A summary of significant gold assay intervals is summarized in Table 1 below.
Table 1: Significant Assays
Interval
Hole ID From (m) To (m) (m) Au (g/t) Vein
--------------------------------------------------------------------
RBQ-10-01 301.10 305.30 4.20 0.6 No. 2a
RBQ-10-01 339.15 341.95 2.80 5.3 No. 2
RBQ-10-02 355.10 375.90 20.8 1.8 No. 2
RBQ-10-02 373.70 375.90 2.20 11.9 No. 2
RBQ-10-02 373.90 374.90 1.00 23.8 No. 2
RBQ-10-03 327.80 336.85 9.10 1.6 No. 2
RBQ-10-03 327.80 328.00 0.20 57.4 No. 2
RBQ-10-04 185.70 189.70 4.00 1.5 No. 2
This drill program follows the recommendations of L. Rioux, P.Geo. in the
NI43-101 Technical Summary Report on the Blue Quartz Property (dated July 27,
2009) and constitutes the final requirement stipulated by the TSX Venture
Exchange to complete minimum listing requirements for Red Mile as a Tier 2
issuer.
Analytical Procedures
Assay samples were obtained by halving the core using either a core splitter or
a diamond saw by Red Mile personnel. Half of the core was used as sample
material; the other half has been retained. Samples were submitted to ALS Chemex
Labs for preparation and analyzed at the ALS Chemex lab facility in North
Vancouver, B.C. Samples were analyzed for Au by FA/AA with screen for metallics.
Standards and blanks were introduced in the sample sequence by ALS Chemex as
part of an internal QA/QC check.
Qualified Person
Kerry Sparkes M.Sc., P.Geo and Director of Red Mile is the Qualified Person
responsible for the technical information contained within this release. Mr.
Sparkes implemented and field-supervised the diamond drill program at Blue
Quartz.
About Red Mile Minerals
Red Mile Minerals is a tightly held mineral exploration company with a gold
property along the prolific Destor-Porcupine gold-producing region in Ontario.
Red Mile continues to seek additional mineral exploration opportunities where
the company's exploration expertise and corporate share structure could
substantially enhance shareholder value.
On behalf of the Board of Red Mile Minerals Corporation
John Hickey, President and CEO