VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 05/03/12 — Red Mile Minerals Corp. (TSX VENTURE: RDM) “Red Mile” (the “Company”) announces that its Annual General Meeting (the “AGM”) will be held May 29, 2012 at 11:00 a.m. Pacific Time at #300-1055 West Hastings Street, Vancouver, B.C.
Property Exploration Summary:
Dorset Property
The Dorset property covers 12 kilometers of strike length encompassing 69 claims totalling 1,725 hectares in area along the –Baie Verte Line– crustal suture prospective for gold mineralization in northwestern Newfoundland. Red Mile has the right to earn a 100% interest in the Dorset gold property from Tenacity Holdings Ltd. (“Tenacity”) of St. John–s, Newfoundland.
The property includes the original Dorset showing discovered in 1988 which assayed up to 408 g/t gold in a grab sample followed by representative channel samples from surface trenching of 177 g/t gold over 0.35 meters; 56 g/t gold over 2.5 meters, and 42 g/t gold over 1.5 meters over a strike length of 150 meters. Gold discoveries in the mid-1990–s along strike over the 12 km property length include grab samples from outcrop of 10.9 g/t gold, 18.7 g/t gold, and panned concentrates up to 6.2 g/t gold in locally-derived till.
The Company announced on September 27, 2011 that it had commenced diamond drilling on the Dorset gold property, following up on results of a systematic exploration program over a newly identified altered shear zone named the –Perseverance Zone–. Gold values from grab and chip samples of outcrop and angular boulders within the Perserverance Zone assayed from nil to 1 g Au/t and up to 18 g Au/t. A program of B-horizon soil surveying as well as magnetic and induced polarization geophysical surveying further outlined the alteration. Thirteen drill holes tested the Perseverance Zone in the fall of 2011. No significant results were obtained and the source of gold-bearing mineralization along the Perseverance trend remains unexplained.
The diamond drill program, contracted to New Valley Drilling of Springdale, Newfoundland, totaled 1,854 meters of core drilling and tested a 3.2 km strike length. The holes were drilled in two clusters 1,500 m apart, with holes spaced approximately 200 to 500 m apart in each cluster. All holes were laid out to intersect IP resistivity (+/- coincident IP chargeability) and magnetic low anomalies. All 13 drill holes intersected altered volcanic and sedimentary rocks hosting quartz and quartz-carbonate veins, stockworks and quartz breccia zones containing disseminated and stringer pyrite and locally chalcopyrite (Table 1).
A total of 447 core samples, averaging 1.3 m in length, were collected and assayed for gold by Eastern Analytical of Springdale, Newfoundland. Core samples submitted to Eastern are crushed and a 15 gram sub-sample assayed for gold by fire assay with atomic absorption finish. Also included are analyses of blanks plus five chemical reference standards as part of the QA/QC procedure. Pulps from these samples have been retained.
For a map of the drill program, click here:
Blue Quartz Property
In March 2011, the Company granted an option on its 50% ownership in the property to Caledon Resources Inc. (“Caledon”) in consideration of a commitment to spend $500,000 on the property within three years of the date of this agreement and make a payment to Red Mile of $250,000.
Change of Address
As of May 1st the new Head Office address for Red Mile Minerals Corp. will be:
Qualified Person
Charles Dearin, P. Geo., is the Qualified Person responsible for the technical information contained with this release.
About Red Mile Minerals
Red Mile Minerals is a mineral exploration company with a gold property along the prolific Destor-Porcupine gold-producing region in Ontario and the Dorset Property in Baie Verte, Newfoundland. Red Mile continues to seek additional mineral exploration opportunities where the company–s exploration expertise and corporate share structure has the potential to substantially enhance shareholder value. Currently there are 17,125,000 shares issued and outstanding.
On behalf of the Board of Red Mile Minerals Corporation
John Hickey, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Red Mile Minerals Corp.
John V. Hickey
President & CEO
(416) 637-2139