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MMV BACKGROUND AND POSITIONING
Mineral Mountain Resources Ltd., through its wholly owned subsidiary Mineral Mountain Resources (SD) Inc., is focused on the exploration and, if warranted, development of its 100%-owned Rochford Gold Project situated along the highly prospective Homestake Gold Belt in the Black Hills of South Dakota, U.S.A. The Rochford Project covers in excess of 7,500 acres and covers five major trends of structurally thickened auriferous iron formation comparable to the geological setting of the ledge-type gold mineralization developed at the Homestake Mine.
Magnetic 3D modelling of the Company's airborne survey in 2013, combined with surface geological mapping, and the compilation of historic drilling, highlights 3 high priority exploration targets trends, including the Standby Mine Target, coincident with structurally thickened, sheared, gold-bearing iron formation within the Mineral mountain land package.
Since 2013, the Company has continued to expand its land position in the Rochford gold district by professional claim staking and by purchasing strategically located private properties that fall along two of the major sub-parallel structural trends that host Ledge-type gold mineralization. The Company now owns the largest land position in the Rochford greenstone belt and now possesses by far the largest and most comprehensive database for the district in modern day exploration history, including the first time that all available data has been compiled and synthesized in modern GIS and 3D imaging software! The Rochford Project is vastly under-explored and has the potential to host several district scale gold discoveries.
The Latest Program
Major Drilling, experienced in directional drilling technology for the mineral exploration industry, have commenced a 4,000 m drill program to target historic high grade gold intersections and extend gold mineralization along the East Limb Shear Structure in iron formation. Only the initial 450 m plunge length of the structure was defined and partially tested during Mineral Mountain's 2018 Phase 1 drilling program. Historic intersections along the East Limb Structure, which hosts the Standby Mine, include BLG-UG3= 24.0 m @ 3.36 g/t Au down plunge from the historic mine and SM87-3A= 3.10 m @ 10.29 g/t Au intersected 1800 m down plunge along the structure.
The major benefits to employing directional drilling technology is that it enables the Company to dramatically lower overall drill costs by utilizing shorter directional offsets from a deep trunk hole to test the gold bearing structure along plunge rather than drilling each hole from surface, provides quicker turn-around for assays because of the reduced meter necessary to effect multiple penetrations of the mineralized zone and, importantly reduces the local environmental impact by utilizing fewer drill sites.
A "trunk hole" of up to 1600 meters in length will be directed down the plunge of the East Limb Structure using directional drilling technology towards two separate historic gold zones, Target 1 (shallower) and Target 2 (deepest), that are about 750 m apart. Several shorter off set holes will then be drilled between the two targets, including above and below Targets 1 and 2, to more thoroughly explore the East Limb Structure.
The Standby Mine: Key Project
The Standby Mine, a turn of the 20th century producer, is situated 16 miles (25 km) south of the Homestake Gold Mine, the largest iron-formation-hosted gold deposit in the world, having produced over 40 million ounces of gold over its 125 year history at an average historical reserve grade of approximately 0.27 opt (8.38 g/t Au).
The Standby Target is situated in the northern portion of the 5 mile long (8 kms) Standby-Bloody Gulch-Lookout Trend, and represents the southern extension of the Homestake Corridor, which comprises tightly folded and thickened iron formation, the gold-host rock, cut by numerous major northwest trending, steep, mineralized structures. Based on 3D modelling of the Company's 2013 airborne magnetics, surface geological mapping and the control provided by several historic deep hole arrays completed by Homestake Mining in 1986-87, The Standby Target Trend alone is of sufficient scale (i.e. multi-kilometer plunge length of structurally thickened iron formation) to host a major gold ore-bearing structure on the scale of the Homestake 9-Ledge, without even considering the numerous other major structural trends within gold bearing iron formation present on Mineral Mountain's 30 sq. km Rochford District land package.
Drilling to date by Mineral Mountain has partially defined a gold-bearing, arsenopyrite-pyrrhotite mineralized, near-vertical shear zone in iron formation, approximately 30 m wide, striking 129 degrees Azimuth, in structurally thickened iron formation which comprises a tight isoclinal, steeply dipping closed anticlinal structure forming the eastern limb of the Standby Syncline. This structure, the East Limb Structure, has been traced for over 400 meters to date in the Company's 2018 drilling, and the Company's database confirms that this gold mineralization also continues through a number of deep drill holes up to 1.8 kilometers down-plunge that were drilled by Homestake Mining in 1986-87. In 1987, Homestake drilled SM87-3A which intersected 3.1 m @ 10.29 g/t Au at about 1800 m down plunge. As one example from this trend to date, MMV drill hole ST18-006 intersected 2.12 g/t Au over 20 meters, including 4.39 g/t Au over 2.5 m and 5.24 g/t Au over 1.5 m , 230m below surface. This drill hole is 50m down plunge of historical drill hole BLG-UG3 which graded 3.36 g/t Au over 24 meters. The ST18-006 intersection occurs within a 34 m wide classic Homestake-style quartz vein-hydrothermal chlorite breccia with quartz flooding, 3-15% coarse-grained arsenopyrite and 3-7% pyrrhotite, within the host iron formation.
We continue to rate these shares Speculative Buy.
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Senior Analyst: Robert Goldman
Rob Goldman founded Goldman Small Cap Research in 2009 and has over 25 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.
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