TORONTO, July 19, 2018 (GLOBE NEWSWIRE) -- MacDonald Mines Exploration Ltd. (TSX-V:BMK) (“MacDonald Mines”, “MacDonald” or the “Company”) announces it has strategically staked an additional 177 claims covering 3,915 hectares around its newly acquired Powerline and Jovan Properties, near Sudbury, Ontario. The Company now controls 5,376 hectares in this under-explored polymetallic gold district that exhibits similarities to the Idaho Cobalt Belt with IOCG-like mineralization.
Quentin Yarie, MacDonald’s President & CEO, commented: "The potential for high-grade polymetallic gold mineralization in the area is significant. The claims we’ve staked are contiguous to our Powerline and Jovan Properties and host a number of gold, cobalt and copper showings, suggesting that the area hosts a sizeable polymetallic hydrothermal system. Our team will be focused on finding new mineralized zones and expanding the known gold-cobalt-copper-nickel-silver showings and prospects on this strategic land package.”
Figure 1. Map of newly staked claims
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About the Newly Staked Claims
The land staked by MacDonald Mines covers regional structures that are parallel to the structures that host multiple polymetallic showings (with variable gold, cobalt, copper, nickel and silver) on the Jovan and Powerline Properties. Corridors of albitization along the regional structures, with zones of quartz-iron carbonate veining containing pyrite and pyrrhotite, also suggest potential zones of mineralization. Historically, the mineralized zones in the area contain coincident anomalous gold and nickel concentrations with respective gold and nickel content up to 0.15 g/t gold and 770 nickel ppm (AFRI 20009419; MDI41I10SE00028, MDI41I10SE00026).
The observation of favourable alteration zones, sulfides assemblages and gold and nickel enrichments in regional structures parallel to those hosting the main zones of mineralization of the area, suggest that potential zones of higher grade gold, cobalt, copper, nickel and silver mineralization may exist on MacDonald’s newly expanded land package.
Private Placement
The Company has commenced, on a best efforts basis, a unit private placement offering to raise aggregate gross proceeds of up to $1,000,000. Each unit sold will be priced at $0.06 per unit and will be comprised one common share and one share purchase warrant. Each share purchase warrant shall be exerciseable into one common share at an exercise price of $0.10 and have an expiry 12 months from the date of issuance. The Company will pay finders’ fees in the amount of 7% of the gross proceeds and issue compensation warrants equal to 7% of the number of units sold. Each compensation warrant will comprise one common share with an exercise price of $0.06 and have an expiry 12 months from the date of issuance.
About the Jovan and Powerline Properties
- Over 5,300 hectares covering a known mineralized structural event
- Diversified mineral target (gold, cobalt, copper, nickel, silver)
- Substantial exploration potential
- Excellent infrastructure
- Mining friendly jurisdiction
- Two past-producing high-grade gold mines in close proximity
- The Scadding gold mine, approximately 1 km from the Powerline Property boundary, produced 144,000 tons of ore at a grade of 7.43 g/t gold (OFR 5771).
- The Norstar Mine, located within 500 metres of the Jovan Property, produced 63,000 tons of ore at a grade of 7.2 g/t gold and 0.9% Cu (OFR 5771).
- Grab samples from the Norstar waste pile contain 0.065 to 0.3% cobalt (OFR 5771).
The reader is cautioned that the mineralization observed in the Scadding and Norstar mines is not representative of the mineralization present on MacDonald Mine’s properties.
Qualified Person
Quentin Yarie, P Geo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release.
About MacDonald Mines Exploration Ltd.
MacDonald Mines Exploration Ltd. is a mineral exploration company headquartered in Toronto, Ontario focused on gold exploration in Canada. The Company has built a portfolio of safe-jurisdiction, infrastructure-rich projects that demonstrate the greatest market potential for return.
The Company's common shares trade on the TSX Venture Exchange under the symbol "BMK".
To learn more about MacDonald Mines, please visit www.macdonaldmines.com
For more information, please contact:
Quentin Yarie, President & CEO, (416) 364-4986, qyarie@macdonaldmines.com
Or Mia Boiridy, Investor Relations, (416) 364-4986, mboiridy@macdonaldmines.com
This News Release contains forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.