CALGARY (Yosefardi) – MILL CITY GOLD CORP. has signed a Letter of Agreement (LoA) with PT Mega Malindo of Jakarta, Indonesia wherein Malindo has agreed to vend a 70% interest in the Entikong Gold Project (the Property) to the company in return for a 2% net smelter return.
Pursuant to the Letter Agreement, Mill City is not required to issue any shares or make any cash payments, and does not have any work commitments. The Letter Agreement also grants Mill City a 90 day due diligence period.
The western edge of the 7,000 hectare Property is located in West Kalimantan, Indonesia, approximately 100 kilometers due south of Kuching City, East Malaysia and can be accessed by paved highway and improved dirt roads. Electrical power lines supply power to the local towns and are accessible to the Property.
Previous work at the Property, including surface sampling and limited drilling, has discovered three types of anomalous gold mineralization as well as alluvial diamonds.
Primary gold mineralization occurs in a sequence of granodiorites, diorites, porphyry dacites, porphyry andesites, and rock intrusions in the form of stocks, plugs, dikes, and sills, and a second sequence of granodiorites, diorites, quartzes, biotite-hornblende granites, and tonalites.
Secondary gold mineralization has been discovered in a third sequence of sedimentary rocks that includes slate, carbonaceous mudstones, siltstones, sandstones, local limestone and tuffs.
Placer gold and alluvial diamonds are currently being mined by local artisanal miners on a small scale from a fifteen kilometer watershed corridor running east-west across the Property. This corridor is downslope from and parallel to a normal fault structure that hosts anomalous gold values and which has been traced on surface for over 15 kilometers and averages eight meters in width.
Subject to completion of satisfactory due diligence, the Company may choose to conduct field work programs to further identify the source of gold and diamond mineralization known to exist on the Property.