WINNIPEG, Manitoba, June 11, 2008 (PRIME NEWSWIRE) -- Mainstream Minerals Corp. (TSX-V:MJO) is pleased to announce the acquisition by option agreement of the Phyllis Lake high-grade Molybdenum / Copper project. This new project is comprised of 12 claims totaling 64 units (2,560 acres) and is located near the Town of Ignace, Ontario.
A stripping program carried out by heavy equipment has recently uncovered a number of large zones with impressive widths and strike lengths. Surface sampling has also yielded high-grade results that the Company believes could possibly be the beginning of a large mineral discovery on a new project that has never been explored before.
Surface grab sampling from this project has yielded results as high as:
0.690% Molybdenum (Mo), 2.192% Copper (Cu), 0.415% Cobalt (Co), 0.393% Nickel (Ni), 0.100% Zinc (Zn), 9.60 g/t Silver (Ag), 2.81 g/t Gold (Au), 2.50 g/t Palladium (Pd) and 1.20 g/t Platinum (Pt).
East Zone Number 1
Of special interest is a newly uncovered VMS zone with a width of approximately 60 metres and a visible strike length of approximately 500 metres. The main mineralization is Copper, Zinc and Molybdenum. A 3 metre channel sample within this zone returned high-grade values of 0.677% Molybdenum.
The borders of this large zone have not been established as of yet and will need additional stripping to determine the actual width and strike length. A picture of part of this zone can be seen at http://www.mainstreamminerals.com/phyllis_lake.jpg
East Zone Number 2
Another area of significant interest is a shear zone that runs for 6 kilometres with a width of approximately 40 metres. Only one grab sample was taken from it to see if it carried gold and it yielded 2.811 g/t Au. This zone will need additional sampling and stripping.
North Zone
The zone is approximately 30 metres wide and the strike length has not been established as of yet. Surface sampling has revealed that the mineralization in this zone consists of Copper, Nickel, Cobalt, Gold, Silver, Platinum and Palladium. Additional stripping and sampling will be also be needed.
Central Zone
This zone appears to be a layered intrusive and again is large with a width of 50 metres and a strike length of approximately 700 metres. Surface sampling has revealed that the mineralization consists of Cobalt, Copper, Nickel, and Silver. The borders of this zone have not been established as of yet either.
Access to this property is also very good via the Trans Canada Highway and then onto a gravel road that was recently built by a lumber company. John Archibald, A.P.G.O. - Geologist is the Qualified Person under National Instrument 43-101 for this project.
Mainstream Minerals is extremely pleased with this new acquisition, especially with the potential of a project like this one which could possibly turn out to be a "Company Maker". The Company is planning on commencing an exploration program that will consist of a geophysical survey, surface sampling, stripping, washing and diamond drilling.
Mainstream Minerals is also presently in the middle of a 15,000 metre drilling program at the joint ventured high-grade gold, rare earth elements Bobjo Mine project, Red Lake, ON. While Mainstream Minerals is still very excited about its Bobjo Mine project, the corporation will be seeking to raise additional funds in the near future specifically to commence work on this very promising Phyllis Lake project.
Terms of the Phyllis Lake acquisition
The option agreement for the Phyllis Lake property provides that Mainstream Minerals can acquire a 100% interest in the property by making the following payments to the Vendor: a) $10,000 on signing and the issuance of 50,000 common shares upon approval from the TSX Venture Exchange; b) $20,000 and the issuance of 50,000 shares upon the first anniversary; c) $30,000 and the issuance of 50,000 shares upon the second anniversary; d) $40,000 and the issuance of 100,000 shares upon the third and final anniversary. The vendor will retain a 2% net smelter return royalty on the property.
About Mainstream Minerals
Mainstream Minerals Corporation is a mineral exploration and development company focused on precious metal mining properties with economic potential, with the aim of bringing such properties to commercial production. The Company's portfolio of properties is primarily located in the prolific Red Lake Gold Camp of Northwestern Ontario. The properties include -- (i) 50% of the Bobjo Mine project, (ii) 100% of the Dixie Lake North project, and (iii) 50% of the Woman Lake North of South Bay project.
Shares Outstanding: 18,031,087
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe MJO's future plans, objectives or goals, including words to the effect that MJO's management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.