MacDonald Mines Receives Results from Resistivity/IP Surveys on Nickel Target adding to the Potential of Butler Property; Closes First Tranche of Non-Brokered Private Placement
(Toronto, Ontario) MacDonald Mines Exploration Ltd. (TSX.V: BMK) (“MacDonald” or the "Company”) has received results of the IP/Resistivity Survey that was completed over the Company’s primary nickel target on Butler 5.
Deep Penetration and High Resolution IP/Resistivity Survey Results over Butler 5
The Insight Geophysics survey results over Butler 5 have confirmed chargeability anomalies and resistivity structures associated with an interpreted embayment in a known ultramafic sequence. Embayment features in ultramafic rocks are known structural traps for Ni-sulphide mineralization, so the presence of an embayment feature with high conductivity and chargeability, coupled with the intersection of Ni-sulphides on strike, make this a high priority target with the potential to host significant magmatic Ni-sulphides.
The Company has focused on this particular area for a number of reasons:
- Structural interpretation of a “trap”
- VTEM conductivity anomalies
- Past drilling along strike (MN07-039; 0.54 to 1% Ni)
Geological embayment features associated with mafic-ultramafic intrusive complexes or komaiitic flow sequences be they magmatic or structural in origin, are well known trap environments for the concentration of magmatic Ni-Cu-PGE sulphides. These features are generally manifested in the form of a bulbous-like protrusion along the basal contact zone of a mafic-ultramafic body. A drilled dunitic body on Butler 5 has a strike length of at least 4.4 km and an embayment like feature. Based on magnetic interpretation the northern basal portion of this 4.4 km long body has a pronounced embayment-like feature that protrudes approximately 150-200m deeper into the underlying footwall stratigraphy than elsewhere along the base of the body and would appear to fit the criteria for an embayment.
The recent “Insight” IP geophysical survey over this “embayment feature” disclosed high chargeability associated with the core of this feature but an even higher and thicker chargeability zone associated with the outer periphery of this feature and the underlying country rock. It should be noted that the axis of this thicker outer chargeability anomaly is also coincident with a marked and rapid change in the density of the underlying rocks as detected by the 2010 OGS-GSC gravity-magnetic survey and the Company’s recently completed ground gravity survey.
The same IP survey also discovered an even higher zone of chargeability approximately 700 m south of the embayment feature. This anomalous chargeability zone also was found to be underlain by anomalously dense rocks as detected by the 2010 OGS-GSC gravity-magnetic survey. An interpretation of the magnetic fabric of this area would suggest that this zone of anomalous chargeability and density would appear to flank mafic-ultramafic rocks, and are < 400 m along strike from the best Ni-Cu sulphides (MN07-039; 0.54 to 1% Ni) discovered to date on the Butler property.
Targeting of the above anomalies will be completed and they will be prioritized into the upcoming drill program. “The Insight IP survey continues to prove invaluable in identifying chargeable features beneath shallow conductive materials which resulted in numerous traditional time domain EM targets. The success of this technique in targeting Ni sulphides in the Ring of Fire has been demonstrated at Noront’s Eagle’s Nest and continues to add to MacDonald’s exploration potential on the Butler property.” – Quentin Yarie, Senior VP, Exploration.
MacDonald Mines Closes First Tranche of Private Placement Raising $1,039,000
The Company has closed the first tranche of its previously announced non-brokered private placement (the “Offering”) for total gross proceeds of $1,039,000. Insiders to the Company subscribed for a total of $571,000.
Pursuant to the Offering, the Company issued an aggregate of 8,658,335 “flow-through” common shares at a price of $0.12 per common share.
In respect of this first tranche of the Offering, the Company paid finder’s fees in the form of cash compensation of $17,000 and issued 141,667 non-transferable compensation options, with each such option entitling the holder to acquire one common share at a price of $0.12 per share for a period of 24 months following closing.
All securities issued pursuant to the Offering are subject to a restricted period of four months and one day from the date of issuance. The Offering is subject to receipt of final approval from the TSX Venture Exchange.
Quentin Yarie, P.Geo., is the qualified person in regard to the technical data contained within this news release and will be responsible for overseeing all aspects of the Company’s exploration programs.
About MacDonald Mines Exploration Ltd.
MacDonald Mines is a mineral exploration company with an established exploration history in the Canadian Northlands. MacDonald Mines has set upon a strategic direction of exploration with particular focus on nickel, chrome, copper, zinc, vanadium and titanium in the “Ring of Fire” area of the James Bay Lowlands of Northern Ontario.
With over 9 years of exploration in the James Bay Lowlands, the Company has systematically acquired quality land positions based on a very precise selection format that utilizes region-wide interpretations completed by geological consultant Hadyn Butler, P. Geo. MacDonald is now the second largest landholder in the Ring of Fire and has a proven track record of environmentally and socially conscious exploration practices.
MacDonald Mines exploration focus has been on 3 properties - the Butler, the Semple-Hulbert and the Sanderson. Recent exploration has been focused on the Butler property, where the Company has identified seven significant zones of multi-element mineralization, including copper-zinc VMS systems, vandiferous titano-magnetite and magmatic nickel sulphides.
The Company has established rapport with First Nation Communities in this region, which has culminated in the signing of exploration agreements with the Kasabonika Lake and Webequie First Nations.
More detailed information about the Company is available on the website: www.macdonaldmines.com
Brent Nykoliation, Vice President of Business Development
Phone: (416) 364-4986, (416) 364-2753 (FAX)
Kirk McKinnon, President & CEO
Phone: (416) 364-4986, (416) 364-2753 (FAX)
Neither 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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The foregoing information may contain forward-looking statements relating to the future performance of MacDonald Mines Exploration Inc. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from MacDonald Mines plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by MacDonald Mines with the TSX Venture Exchange and securities regulators. MacDonald Mines does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. We seek safe harbour.