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Sector: Mining - Metals and Minerals :

 

News Release -  April 21, 2017 05:10 PM ET 

 

 

MacDonald Mines conducting metallurgical test of Gold-laden Oxide Sands as it preps for bulk sampling at Wawa-Holdsworth Gold Project

  • Company has LOI 100% interest at Wawa-Holdsworth Gold Project with terms to extract >50,000 oz Gold from oxide sands.

  • Oxide Sand Zones offer quick pathway to cash flow; neither aggregate licencing nor bulk sampling permissions will be required for the extraction of the oxide sands on the Wawa-Holdsworth Project.

  • Previous sampling over 332.5 m along strike reached depths of 8 m and contained an average gold grade of 3.45 g/t and an average silver grade of 29.99 g/t.

  • Market Equities Research Group projects ~81,700 oz Gold equiv. (non NI 43-101) in the Oxide Sands at Wawa-Holdsworth Project.

NEW YORK, NY, April 21, 2017 /Sector Newswire/ - Macdonald Mines Exploration Ltd. (TSX-V: BMK) (US Listing: MCDMF) (Frankfurt: 3M72) earlier this month announced that it has shipped approximately 100kg of oxide sands to SGS Minerals Services to conduct metallurgical testing and investigate potential processing methods for the Wawa-Holdsworth Pyrite prospect. This news falls on the heels of the Company announcing  that it is initiating a bulk sampling program of the oxide sands at its Wawa-Holdsworth 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.  Last week the Company announced 100% ownership of the Wawa-Holdsworth Gold Project with terms that point to an imminent production scenario (see terms below).

 

Oxide Sand Zones offer quick pathway to cash flow

 

Fig. 1 (below) Black Sands of Wawa-Holdsworth Property

 

 

MacDonald Mines was recently the subject of a Market Equities Research Group Market Bulletin that placed a near-term (12 month) price target of $1.50/share for BMK.V. The Company is also currently the subject of a Mining Journal review which may be viewed at http://miningmarketwatch.net/bmk.htm online.

 

Excerpts:

 

MacDonald Mines advancing Gold laden zones toward cash flow, and highly prospective for new discovery next to multi-million oz miners

 

MacDonald Mines Exploration Ltd. (TSX-V: BMK) (US Listing: MCDMF) (Frankfurt: 3M72) last week announced 100% LOI ownership of the Wawa-Holdsworth Gold Project with terms that point to an imminent production scenario; aside from 5.5 million shares of BMK.V issued (along with equal warrants exercisable at $0.30 -- something we like to see as the belief is share price of BMK.V will rise substantially) and a partially repurchasable 1.5%NSR, the bulk of the principle consists of MacDonald Mines paying the equivalent of 5,000 ounces of gold equivalent to Noble once MacDonald has extracted, refined and sold a minimum of 50,000 ounces of gold from the oxide sands portion of the Property.

 

In brief, the oxide sands are the cap of the pyrite prospect on the property, which to date is just over 2,200 metres long and has a defined historic (non NI 43-101) resource of sulpher but never tested for Gold until 1988 (it was noted to have gold in it from trace to over 8 g/t, however no assaying was done for silver at the time). 43-101 compliant drilling in 2002 covered 332 m of strike length (of the 2,200 m); within that known length and extrapolated for tested widths + estimated depth we get sizeable tonnage of apparent ~3.45 g/t Gold (average grade tested) and ~29.99 g/t Silver (average grade tested) ready for the taking. Extrapolating that known 332 m length (x ~6) over the 2,200 m there appears 146,000 tonnes of such material for the taking in the initial strike set. The average depth based on historic drill holes would be much larger as far as surface extraction goes. The assumption on a parallel and multiple sets of sulphide sands is valid and has been proven in drill holes -- this rationalizes 550,000 to 675,000 tonnes (not yet NI 43-101, but the science is there to more than support an ~81,700+ ounce Gold equivalent target), most of which can be self financed from production that appears to require little capex at all to begin. Neither aggregate licencing nor bulk sampling permissions will be required for the extraction of the oxide sands on the Wawa-Holdsworth Project.

Excerpt of Recent (April 5, 2017) news release from MacDonald Mines:

 

MacDonald Mines Begins Metallurgical Testing of the Oxide Sands at its Wawa-Holdsworth Project

 

TORONTO, ONTARIO--(Marketwired - April 5, 2017) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald Mines", or the "Company") has shipped approximately 100kg of oxide sands to SGS Minerals Services to conduct metallurgical testing and investigate potential processing methods for the Wawa-Holdsworth Pyrite prospect.

The Wawa-Holdsworth Pyrite prospect is a gold and silver bearing, black coloured, "oxidized cap" ("oxide sands") that overlies a massive pyrite zone. The strike of the pyrite zone runs over 2 km and its thickness ranges from 2 to 10 metres. The oxide sands reach a depth of more than 8 metres. A sampling program of the oxide sands conducted in 2002 produced an average grade of 4.03 g/t gold and 30.89 g/t silver. Preliminary mill testing by normal vat leach processing without crushing or other processing resulted in a 94 % gold recovery (Seymour M. Sears, P. Geo., 2002).

The metallurgical testing initiated by MacDonald Mines will investigate simple processing methods that require no chemicals to concentrate the gold and silver and achieve the highest possible recovery.

To evaluate multiple options the following will be completed:

  • Head assays;

  • Mineralogical characterization of the feed;

  • Bond ball mill grindability test;

  • Heavy liquid separation testing;

  • Knelson Concentrator testing;

  • Flotation and leach testing on gravity tailings as diagnostic tests.

Quentin Yarie, MacDonald's President and CEO commented: "In the few months our team has worked on the Wawa-Holdsworth Project, we've already initiated a bulk sampling program of the oxides sands, initiated metallurgical test work on the immediate gold target on the property and secured a 100% interest in the property. Following spring breakup, the Company will ramp up its sampling program to better define the oxide sands and continue to prepare for their potential extraction."

Wawa-Holdsworth Project Highlights

  • Approximately 285 hectares, 20 kilometres northeast of the town of Wawa

  • Neighbouring Argonaut's >6Moz gold Magino Deposit & Richmont's >1Moz gold Island Gold Mine

  • Numerous gold showings with diversified mineralization styles occurring in a 500 metres-wide deformation corridor

  • Year-long road access and easy access to rail, road, electrical power, labour force and suppliers...

...click here for full copy of release from source

 

   

Market Equities Research Group projects (non NI 43-101) along the initial strike set of sulphide sands alone:

 

Gold Oz

Silver Oz

146,000t

146,000t

@3.355 g/t

@29.2 g/t

15,750 oz

137,000 oz

Can$1,500.00/oz Can$20.00/oz

Can$23,625,000

Can$2,740,000

Table 1. Guesstimate of gold in initial strike set of sulphide sands alone.

 

The Pyrite Zones are believed to contain multiple Gold-laden Oxide Sand Zones. At present, five related zones have been confirmed, thus >four times that above number (>675,000 tonnes = ~72,800 oz Gold, ~633,700 oz Silver *non NI 43-101 = ~81,700 oz Gold Equivalent (using US$17/oz Silver and US$1,200/oz Gold conversion) on parallel and multiple sets which have been proven in drill holes. Note: Values derived are based on past exploration results of Reed Lake Exploration (pre dating NI 43-101) and Hawk/Nobel's exploration results (NI 43-101 compliant) which affirm 550,000+ tonnes.

 

Gold Oz

Silver Oz

675,000t

675,000t

@3.355 g/t

@29.2 g/t

72,800oz

633,700 oz

Can$1,500.00/oz

Can$20.00/oz

Can$109,200,000

Can$12,674,000

Table 2. Guesstimate of gold from initial strike set and parallel/multiple sets.

 

  

Fig. 3 (above) Exposed gold laden black oxide sands.

 

Oxide Sands can be treated like aggregate. Visible in the images of black oxide sands (seen in Fig. 2 above) 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 spring 2017 are geared towards affirming a voluminous and robust understanding of these Oxide Sands Zones -- the potential for substantial share price appreciation closer to $1.50/share from current price levels appears in order as exploration findings/results affirm what is suspected.

 

Sample of exploration results in support of Company's 50,000 oz Gold target on Oxide Sands:

  

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. Preliminary metallurgical testing resulted in between 69% and 98.7% gold recoveries, without even crushing.

 

Results from the 2002 Sampling Program:

 

BLOCK

 

 

 

Block #

A

 

(m) LENGTH

 

(m)AVERAGEWIDTH

 

(m) AVERAGE DEPTH

 

 

SPECIFIC GRAVITY

 

 

INDICATED TONNES

 

GOLD GRADE

(gms/tonne)

 

SILVER GRADE

(gms/tonne)

A-1

30.0

6.9

4.65

2.5

2392

4.92

25.22

A-2

13.5

5.3

3.00

2.5

540

5.76

42.65

A-3

31.0

4.7

3.35

2.5

1228

5.95

47.09

A-4

10.0

3.5

3.74

2.5

328

5.94

50.78

A-5

24.0

2.9

3.66

2.5

630

5.10

50.14

A-6

8.0

5.3

5.49

2.5

583

2.99

36.01

A-7

11.5

7.5

5.03

2.5

1080

1.74

21.29

A-8

20.0

6.3

3.65

2.5

1140

0.85

9.91

Sub-total

148m

5.3

4.07

2.5

7921

4.03

30.89

 

BLOCK

 

B

 

 

 

 

 

 

B-1

21.0

6.4

1.92

2.5

645

1.17

17.43

B-2

53.0

3.8

1.14

2.5

576

1.20

17.94

B-3

17.5

2.8

1.60

2.5

193

3.04

44.06

B-4

17.5

5.5

3.20

2.5

769

3.88

50.56

B-5

10.0

5.5

3.20

2.5

439

3.51

41.28

B-6

45.5

3.6

2.28

2.5

944

1.84

16.83

B-7

20.0

3.0

1.83

2.5

275

1.54

18.6

Sb-total

184.5

3.8

1.87

2.5

3839

2.27

28.14

TOTAL

332.5

4.55

2.97

2.5

11760

3.45

29.99

 

 

 

 

 

 

 


 

Table 2. Drill Results within one section of Oxide Sands sound within Pyrite Prospect.

 

The Pyrite Zones are believed to contain multiple Gold-laden Oxide Sand Zones:
 

The Pyrite Zones are a pyrite-altered Algoma-type iron formation and represent a iron formation-hosted gold target. Algoma-type iron formation are recognized hosts of large gold deposits in Canada and the United States. Key examples of gold deposits in Algoma-type iron formation in Canada the Meadowbank, Meliadine and Musselwhite gold deposits (Dubé et al., 2015). The pyrite Zones forms steeply dipping east-west trending lenses distributed along a mafic/felsic metavolcanic contact over a defined strike length of 2.2 kilometres. A gold intersection of 5.18 g/t gold over 1.5 metre were also obtained in a sericite-altered shear zone in the hanging wall of the pyrite zone whereas a 1988 drilling intersection in the pyrite contains 0.85 g/t over a 11.83 metres. This appears to be similar to the Bousquet deposit (see below) taken from 1917 report on the property which identified a historic (non NI 43-101) sulphide resource.

 

The Holdsworth Pyrite Prospect consists of massive lenses of pyrite situated at the contact between mafic and felsic metavolcanic rocks. These lenses trend approximately east-west and dip steeply towards the north. They are locally cut and offset by north-northwest trending faults. At present, five related zones have been confirmed by surface stripping and prospecting and several others indicated by ground geophysical surveys. The five confirmed zones (the 'East', 'East Extension', 'East Offset', 'West' and 'West Offset') have a combined strike length in excess of 2200 meters. Two drill programs completed from 1918 to 1926 (Algoma Steel Corp. and the Grasseli Chemical Co.) identified an iron reserve of 1,019,273 tons of 46 % sulphides within what is herein referred to as the East Pyrite Zone.

 

The pyrite zone has been intersected in 6 holes in more recent exploration programs including 2 holes by Falconbridge in 1983 and 4 by Reed Lake Exploration Ltd. in 1988. The Holdsworth Pyrite zones are of interest for their gold potential for two reasons. One of these is represented by the unoxidized portion of the sulphide zone and it's surrounding rocks. A drill core sample taken by Falconbridge Nickel Mines Ltd. (Band, 1983) was reported to contain 0.35 oz/ton, Au across 1.5 meters. Another sample from this hole taken from a pyritic shear in the hanging-wall six (6) meters above the Pyrite Zone was assayed four times yielding a range of assays from 0.24 to 0.51 oz/ton, Au. The massive pyrite typically contain up to 5% sugary to greasy quartz stringers and ribbons similar to the black sands. The massive pyrite contained gold values ranging from nil to 0.14 oz/ton. Three of the five holes drilled by Reed Lake Exploration Ltd. were found to contain very anomalous gold values: 1.03 g/t Au over a core length of 2.13 meters (Hole R23); 3.06 g/t over 6.1 meters (Hole R26) and2.08 g/t Au over 5.8 meters (Hole R27).

 

The second zone of interest on the Holdsworth Pyrite prospect is a gold and silver bearing, black colored, "oxidized cap" that overlies the massive pyrite. This coarse sandy material is in excess of eight (8) meters thick in most locations, where sampled, and contains gold values ranging from a few parts per billion to a high of 14.2 g/t (0.41 oz/ton).

 

The oxidized material that forms a "cap" to the Holdsworth Pyrite deposit has been described by old-time prospectors as a 'black sand'. It consists of siliceous grains and non magnetic iron oxide pellets ranging from a few centimeters to several microns in size. It is assumed to be the oxidized equivalent of the underlying massive iron sulphide. The sulphide zones are frequently anomalous in gold. Assays from a number of drill holes (Band, 1983; Sears, 1989) have ranged from nil to 0.056 oz/ton, Au. The best intersection to date was from Hole R26 (Reed Lake Exploration, 1988) which contained a 6.1 meter (20 foot) section assaying 1.06 g/t (0.031) oz/ton, Au. The enriched gold values in the overlying material are assumed to be related to the oxidizing and weathering process.

 

In 1988, Reed Lake Exploration Ltd. carried out a stripping program over parts of the East and West Pyrite Zones (Figure 4). In the early part of the program, the overburden was stripped completely down to the black, oxidized granular material. When it was discovered that the overlying red and yellow soil was also highly elevated in gold, the remainder of the stripping stopped just below the overlying bouldery till. Sampling was then carried out by means of surface channels at regular intervals across the zone (Appendix 1). Two blocks within the East pyrite zone in which the oxidized cap was exposed yielded assays ranging from trace to 0.284 oz/ton, Au and an average grade of 0.208 oz/ton, Au. The sampled width averaged 2.9 meters (9.5 feet) for a strike length of approximately 100 meters (328 feet). The actual width of the underlying pyrite zone has a range of 2 to 10 meters (6.5 to 33 feet). In several test locations, the bottom of the zone was not reached at a vertical depth of 8 meters.

 

During the 1988 program, sampling from the red, yellow and grey soil above the black oxidized zone was also found to contain elevated gold values, ranging from trace to 0.206 oz/ton, Au. This material extends throughout the area stripped, so it was assumed that the black granular oxide occurred beneath it at shallow depths. A very limited amount of stripping was completed on the West Zone to check for the existence of the oxidized cap material. Six (6) grab samples were collected from two three meter sections across this zone. Four of these consisted of brown soil and contained trace amounts of gold. The other two were of black-green material and contained 0.052 and 0.064 oz/ton, Au.

 

The project potential beyond the sands is substantial

 

The Wawa-Holdsworth project is proximal to the crustal-scale Wawa–Hawk Lake–Manitowik Lake Fault and encompass a 500 metre-wide deformation zone where gold was concentrated in different structures. These includes the Pyrite Zones, source of the gold-bearing Oxide Sands, the Soocana Vein System and the Golden Goose Shear Zone.

.

 

Figure 4. Wawa-Holdsworth Gold Zones -Three styles of gold mineralization exist on the original 285 hectares Wawa-Holdsworth project (the Company has since added 84 claims of similar ground nearby), all part of the same gold system within the 500 metre-wide deformation corridor.

 

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"; 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. In 1933 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) -- this is historic resource was never mined!

Location details:

 

 

Figure 4. Regional Location Map - Wawa-Holdsworth Gold Project is located 25 km NE of Wawa Ontario, Canada, uniquely positioned proximal Argonaut's >6Moz Au Magino deposit property, and Richmont's >1Moz Au Island Gold Mine, along an underexplored extension of the prolific Michipicoten Greenstone Belt. 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.

 

The following additional research links have been identified for further DD on MacDonald Mines Exploration Ltd.:

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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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