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Sector: Mining - Metals and Minerals, Technology
:
News Release - March
17, 2017 05:10 PM ET
MacDonald
Mines Oxide Sands 2017 trenching program to continue on previous
sampling over 332.5 m along strike, reaching depths of 8 m
containing an average gold grade of 3.45 g/t and an average silver
grade of 29.99 g/t
NEW
YORK, NY, March 17, 2017 /Sector Newswire/ -
Macdonald Mines Exploration Ltd. (TSX-V: BMK) (US Listing: MCDMF)
(Frankfurt: 3M72)
last
week announced a new Technical Advisory Committee and announced
the contractor for its upcoming Oxide Sands trenching program at its
Wawa-Holdsworth Gold Project. The property is located 25 km
NE of Wawa Ontario, Canada, uniquely positioned proximal Arogonaut's
>6Moz Au Magino deposit property, and Richmont's >1Moz Au
Island Gold Mine, along an underexplored extension of the prolific
Michipicoten Greenstone Belt.
Fig. 1 (below)
Black Sands of
Wawa-Holdsworth Property
Oxide Sand Zones offer a quick pathway to cash flow
Voluminous gold-bearing oxide sand
(black sand) zones near surface have demonstrated potential for an
immediate pathway to production/cash flow; e.g. 3.45 g/t gold and 29.99 g/t
silver average grade from a composite of 23 panels, with preliminary
metallurgical testing resulting in between 69% and 98.7% gold recoveries
(without even crushing). The
exploration team is now undertaking a program of mapping and quantifying these
zones which were previously not mapped well and historically ignored for gold but characterized in
the early-1900's as one of the best massive sulphide deposits in the
country. There is the possibility of a 2.2 km strike length of gold
laden Oxide Sands Zones over the auriferous iron formation (which
acted as a trap for gold circulating in the system).
Oxide Sands can be treated like aggregate.
Visible in the images of black oxide sands
(seen to the right) taken from the property is gold and some course
grain quartz (which likely also contain gold). The oxide sand zones
appear amenable to MacDonald Mines simply obtaining a permit for
mining aggregate; backhoe the material, then crush and ball mill the
material (to maximize recoveries), and transport the floured
material to one of the
several mills located within a few kilometers of the property.
Works programs underway this winter
and spring 2017 are geared towards affirming a voluminous and robust understanding of
these Oxide Sands Zones -- the potential for a 6-bagger in
share price appreciation from current price levels appears in order
if exploration findings/results affirm what is suspected.
Fig. 2 (above) Wawa-Holdsworth Gold
& Silver Project Oxide Sands Zone Test Pit - Best composite
samples; 5.95 g/t gold + 47.09 g/t silver in a 31x4.7x3.35m bloc,
and 5.94 g/t gold+ 50.14 g/t silver in a 10x3.5x3.74m bloc. See
press release (further above) on this page for details of 2002
sampling program.
Large near-term exploration upside
potential - Oxide Sands, BIF, and Load Gold Vein
The exploration team has learned from
other projects in the area that the alteration system associated in
this land package is very large, something that people historically
either didn't recognize, or know about, or chose to ignore, instead
they would focus on the quartz veins. Banded Iron Formations (BIF)
are hosted on the property, similar to other formations that were
historically mined near Wawa. We know that when you put these type
of rocks in an environment where gold bearing fluids are circulating
they form very good traps for gold, and we know that BIF on this
property are mineralized because the Oxide Sands are derived from
the weathering of those banded formations. Additionally, localized
drilling and samples in BIF have shown them to be gold bearing,
historic samples were upwards of ~0.3 ounces/t.
Fig. 3 (above) Oxide Sands
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Excerpt of March 8, 2017 news release from MacDonald Mines:
MacDonald
Mines Introduces Technical Advisory Committee and Contractor
for Oxide Sands Trenching Program
Toronto, Ontario – March 8,
2017 -
MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK)
("MacDonald Mines" or the "Company") is pleased to introduce
its new Technical Advisory Committee. The Company believes
that these experienced industry professionals with a varied
array of expertise and background will be an important asset
to the Company as it advances its recently acquired mineral
projects.
Technical Advisory Committee
Jean-Philippe Desrochers, Ph.D.,
P.Geo.
Mr. Jean-Philippe Desrochers, has over
twenty years of experience in the mineral exploration
industry in Canada, Central and South America. Dr.
Desrochers has been involved with intermediate and junior
mining companies with exploration projects ranging from
grass-roots to mine-scale. He was Vice-President of
Exploration at the Windfall Lake Gold Project for Murgor
Resources Inc. from 2005 to 2010, and joined Eagle Hill as
Chief Geologist in 2010 before becoming Vice-President
Exploration for Eagle Hill in 2013. Past experience also
includes senior positions with Aur Resources and SRK
Consulting. Dr. Desrochers specializes in the field of
structural geology applied to ore deposits in the search for
Archean lode gold, volcanogenic massive sulphides, porphyry
copper, skarn, and epithermal gold deposits.
James Franklin, Ph.D., FRSC, P.Geo.
Dr. James (Jim) Franklin, is a renowned
and award winning exploration geologist with over 40 years
of extensive geological knowledge and expertise focusing on
discovering base metal, uranium, and gold-bearing ore
deposits. His career in the mineral industry has involved
teaching at the university level, and directing research
programs for the Geological Survey of Canada as Director of
the Survey and as its Chief Geoscientist from 1993 to 1998.
Dr. Franklin was past President of both the Geological
Association of Canada and the Society of Economic
Geologists. He was a Co-editor of Exploration and Mining
Geology for CIM and was also Associate Editor of Economic
Geology (trade journal) for seven years. He serves as a
Fellow of the Royal Society of Canada and is an Adjunct
Professor at Queen's, Laurentian and Ottawa university. Dr.
Franklin is an expert on gold and VMS deposits in the
Churchill and Superior Provinces of the Canadian Shield.
Mr. Mackenzie Watson, B.Sc.,
P.Geol., P.Eng.
Mr. Mackenzie (Mac) Watson, has over 50
years experience in the exploration, development, and mining
industry, and has been involved in the discovery of numerous
mineral deposits in Canada. He is currently Honorary
Chairman of the Board of Directors of Quest Rare Minerals.
Mr. Watson spent his career in the junior mining sector, as
CEO of Lynx Canada Exploration from l969 to 1985, and CEO of
Freewest Resources from 1985 until 20l0 when it was taken
over by Cliffs Natural Resources. Mr. Watson was awarded
Canada's Prospector of the Year Award in 1991 for his
contribution to the discovery of the Harker Holloway gold
mine (Ontario), the Icon-Sullivan copper mine (Quebec), the
Long Lake zinc mine (Ontario), the Ellison gold deposit
(Quebec) and the Hebecourt copper deposit (Quebec); and
again in 2010 for his contributions to the mineral
discoveries in the Ring of Fire area of Northern Ontario. He
was also awarded the Quebec Prospector of the Year Award in
1992 for his participation in the discovery of the
Pusticamica and Verneuil gold deposits in Quebec. In January
2015, Mr. Watson was inducted into the Canadian Mining Hall
of Fame.
Mr. Hadyn Butler, B.Sc., P.Geo.,
P.Eng.
Mr. Butler is a Professional Geoscientist
and a practicing member of the Association of Professional
Geoscientists of Ontario. Mr. Butler had 30 years consulting
experience with INCO and has enjoyed substantial success in
mineral exploration. He has over 40 years of geological
experience. He has been a Director of MacDonald Mines
Exploration Ltd., since August 14, 2003 and a member of its
Technical Advisory Committee since February 2011. He served
as Director of Uranium Star Corp. (Formerly Yukon Resources
Corp.) from December 22, 2006 to January 2, 2009. He
graduated with a degree in geology in 1974 (Bachelor of
Science, with First Class Honours and University Medal) at
the University of New England, Armidale, New South Wales,
Australia.
Trenching on Oxide Sands to Commence
Spring 2017
Expedition Group of Companies Inc. has
been contracted to conduct the trenching of the Oxide Sands,
one of the main gold targets on the property.
The Oxide Sands are interpreted to be derived from the
weathering of an auriferous and pyritized Algoma-type iron
formation. The pyritized iron formation has been traced over
a 2km strike length. In 2002, the Oxide Sands were sampled
over 332.5 metres along strike. They were reported to reach
a depth of at least 8 metres and contained an average gold
grade of 3.45 g/t and an average silver grade of 29.99 g/t.
The objective of MacDonald's trenching
program is to confirm the Oxide Sands' strike length and
thickness and to undertake a systematic sampling of the
mineralized horizon over the total strike length...
...click
here for full copy of release from source |
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Valuation
Commentary: The
risk-reward characteristics are highly advantageous for investors
establishing a long position in BMK.V as the current market cap
(~$9.3M Canadian, trading at ~17 cents/share) relative to the inherent value of MacDonald Mines'
Wawa-Holdsworth Gold Property
appears disproportionate;
near-term share price catalysts exist as the Company is aggressively
exploring to build on known gold values and leverage its exploration
teams expertise and experience in the Wawa district gold camp.
Fig. 4 Location Map of MacDonald
Mines' Wawa-Holdsworth Gold Project - Within a few km of
impressive
gold deposits of miners whose deposits keep growing, and mills.
There is road access to
the property, it is close to power, rail, and a stable workforce, in
a mining-friendly region.
Fig. 5 (below) Wawa-Holdsworth Gold Zones
-Three styles of gold mineralization exist on the original 285
hectares Wawa-Holdsworth project, all part of the same gold system
within the 500 metre-wide deformation corridor:
"*" in the image above signifies non NI 43-101 compliant values for
the Soocana Vein.
The three gold mineralization styles on the
property (and shown in the claims map above) are:
-
An oxidized cap at surface
developed over a massive pyrite zone (Algoma Iron
Formation) -- "The Oxide Sands",
-
The precursor to the Oxide
Sands - a massive pyrite zone (Algoma Iron
Formation) at depths -- "The Massive Sulphide", and
-
Lode Gold in traditional quartz
veins -- "The Soocana Vein".
Lode Gold in traditional quartz
veins -- "The Soocana Vein":
Almost all the historic drilling
and work done for gold on the property was concentrated into a 700 m
strike length associated with this 'Soocana' vein with very little
efforts put into other gold plays on the property, apart from the
Oxide Sands. The Soocana vein system is a shear zone with stacked
auriferous quartz veins. A poor understanding of the shear system
geometry by previous operators is obvious as drilling occurred in
every direction with un-systematic sampling practice. Noteworthy
historic (non NI 43-101 compliant) drilling intersections include
16g/t gold over 4.3 m, and 6.9 g/t gold over 15.8m and demonstrates
the potential.
Figure 5 (below) Surface Mining
Plan of Soocana Vein from November 15, 1933 - From the then
Soocana Mining Company. There were plans at one point to exploit the
robust gold and silver values of the vein. At the time, the
Soocana Mining Company Limited calculated a gold resource
(historical non NI43-101) of 54,000 tons of material grading 0.556
oz/t (19.06 g/t), however the Soocana Vein was never
meaningfully mined in any way, only a small pit scratched the
surface in one spot from earlier on.
|
Fig. 6. (above)
Soocana Vein |
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------ ------ ------
Proven exploration team that understands
area geology: One of the most effective investment techniques
for generating superior returns in exploration mining stocks is to
follow quality/proven people to new ventures. The advisory and
exploration team for MacDonald Mines has enjoyed exploration success
in the Wawa gold camp (e.g. another mining Company just raised ~$6M
off the success of their exploration efforts on a neighboring
property). For example, Dr. Jean-Philippe Desrochers ,Ph.D., P.Geo., is
part of the MacDonald advisory/exploration team (Dr. Desroches is
also currently the QP for Osisko) -- he was
Vice-President of Exploration at the Windfall Lake Gold Project (now
owned by Osisko Mining) in its early days from 2005 to 2010 (then
Murgor), and became Eagle Hill's Chief Geologist in 2010 before
becoming Vice-President Exploration for Eagle Hill in 2013. Under
his watch from 2005 - 2013 he took the Windfall gold project from
conceptual to advanced stage with impressive resource that resulted
in the Osisko buy-out. The advisory and exploration team of MacDonald Mines
is looking to replicate that type of success here on the Wawa-Holdworth
property now and believe their success in the area and intimate
understanding of the geology provides a level of insight and
expertise that was never previously afforded this prime land
package.
Plans - Winter-Spring-2017 works program:
There are many gold structures that are present
on the property and the exploration team knows that the structures
control the gold so the first order of business is to get a handle
on them with geophysics this winter and map them all. The
exploration team will pick targets, do trenching to test the Oxide
Sands, expose structures, and perform channel sampling. The goal
will be twofold; 1) lead to drilling load-hosted/shear-hosted
structures highly prospective for significant discovery, and 2) to
quantify the potential of the gold laden Oxide Sands for a
short-term path to production which could finance the Company in
exploration (non-dilutively) going forward and reward shareholders
establishing a long position now.
The Company is topped up, and able to
meet near-term exploration objectives. The area is hot,
area miners keep growing their deposits, and the
property has already yielded exceptional grades in
different mineralization styles -- showing the
potential of what we can expect in what is shaping up to
be one of the most exciting exploration plays in North
America this 2017.
Full copy of the Mining MarketWatch Journal Review may be viewed
at http://miningmarketwatch.net/bmk.htm online.
This release may
contain forward-looking statements regarding future events that
involve risk and uncertainties. Readers are cautioned that these
forward-looking statements are only predictions and may differ
materially from actual events or results. Articles, excerpts,
commentary and reviews herein are for information purposes and are
not solicitations to buy or sell any of the securities mentioned.
SOURCE: Sector Newswire editorial
editorial@SectorNewswire.com
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