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News Release -  December 6, 2017 5:20 PM ET 

 

 

MacDonald Mines Drills 7.92 g/t Gold over 3.23 Metres on First Results from Sonic Drill Program of Oxide Sands

 

NEW YORK, NY, December 6,  2017 /Sector Newswire/ -- MacDonald Mines Exploration Ltd. (TSX-V: BMK) (US Listing: MCDMF) (Frankfurt: 3M72) announces that it has received gold and silver assays for 59 of 401 sonic boreholes completed in the Oxide Sands trend of its Holdsworth Gold Project, located 20 km northeast of Wawa, Ontario. The results are good and affirm the geological model the Company is working under. The Company is currently awaiting the balance of assay results for 401 holes drilled during its 2,000 m sonic drilling program. Once results are made available, the Company will initiate a NI43-101 inferred resource estimation for the Oxide Sands. Copy of the latest Company news is seen below. A synopsis of a recent mining journal review is seen following the news copy below.

 

Excerpt of MacDonald Mines December 5, 2017 release:

 

MacDonald Mines Received First Results from Sonic Drill Program of Oxide Sands; Drills 7.92 g/t Gold over 3.23 Metres

 

TORONTO, Dec. 05, 2017 (GLOBE NEWSWIRE) -- MacDonald Mines Exploration Ltd. (TSX-V:BMK) ("MacDonald Mines", the "Company", or “BMK”) announces that it has received gold and silver assays for 59 of 401 sonic boreholes completed in the Oxide Sands trend of its Wawa-Holdsworth Project. Of the 59 holes received to date, twenty-four had composite gold values greater than 1g/t over 1 metre.
 

An infographic accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/9dbb8c86-dedf-4585-95e6-9eb5cf09914c

 

Table 1 highlights from the drilling results are tabulated below.  The spatial relationship between boreholes is shown in Figure 1.

Hole No

From 
(m)

To 
(m)

Length 
(m)

Au 
(g/t)

Ag
(g/t)

AuEq 
(g/t)

HW-17-001

0

3.05

3.05

3.18

21.6

3.46

                      Including

1.52

3.05

1.53

5.39

34.5

5.83

HW-17-002

0

3.05

3.05

4.42

43.3

4.97

HW-17-003

0

3.23

3.23

7.46

36.2

7.92

                     Including

0.84

1.69

0.85

16.3

73.1

17.2

HW-17-015

0

4.88

4.88

1.26

3.57

1.30

HW-17-016

0

2.59

2.59

1.59

8.69

1.70

HW-17-017

0

3.96

3.96

3.83

23.7

4.13

                     Including

1.43

3.96

2.53

5.36

32.1

5.77

HW-17-022

0

3.35

3.35

2.65

20.9

2.92

                     Including

1.83

3.35

1.52

5.28

41.8

5.81

HW-17-023

0

3.66

3.66

4.24

33.0

4.67

                     Including

1.22

3.05

1.83

4.81

29.3

5.19

HW-17-024

0

4.88

4.88

2.94

13.1

3.10

                     Including

3.05

4.88

1.83

5.02

21.6

5.30

HW-17-026

0

4.88

4.88

3.18

9.2

3.30

                     Including

1.91

4.88

2.97

5.16

14.3

5.34

HW-17-027

0

5.33

5.33

3.55

62.6

4.36

                     Including

0.46

4.95

4.49

4.14

73.3

5.08

HW-17-028

0

6.4

6.4

2.39

9.87

2.52

                     Including

4.11

6.4

2.29

5.50

17.2

5.72

HW-17-029

0

7.62

7.62

2.46

13.4

2.63

                     Including

3.05

6.48

3.43

5.18

27.2

5.53

HW-17-030

0

5.49

5.49

3.95

32.0

4.36

                     Including

0.15

3.66

3.51

5.45

42.6

6.00

HW-17-031

0

4.57

4.57

4.70

46.3

5.29

HW-17-034

0

4.88

4.88

2.34

16.0

2.55

HW-17-035

0

6.4

6.4

1.02

6.73

1.11

HW-17-036

0

7.01

7.01

1.98

21.2

2.25

HW-17-037

0

7.01

7.01

1.43

14.2

1.62

HW-17-038

0

7.01

7.01

0.98

27.3

1.33

HW-17-039

1.52

3.66

2.14

1.10

7.80

1.20

HW-17-042

1.22

4.57

3.35

0.89

10.5

1.02

HW-17-045

0

3.66

3.66

1.97

19.4

2.22

HW-17-046

2.29

3.35

1.06

0.87

21.2

1.14

*AuEq calculated using spot price of 1274.36 US$/oz for gold and 16.34 US$/oz for silver taken at market closure on December 1st, 2017. AuEq = (Grade Au) + [(Grade Ag)/(Gold Price/Silver Price)] (ratio rounded to 78). Drilling intersection reported as intersection length are estimated to represent >95% true width of the precious-metal rich layer of the soil formation.

 

Figure 1. Plan map of trenching locations with gold AuEq values

Quentin Yarie, President and Chief Executive Officer of MacDonald Mines stated, "These first results from the sonic drilling have exceeded our expectations. Our trenching program helped us define the lateral extents of the Oxide Sands formation, but only sampled the surface materials. These results suggest that the precious metal materials are below 1/2 metre of surface and that there are likely high-grade gold and silver zones.”

 

Oxide Sands Sonic Drilling Results
Sonic drilling systematically tested all the trenches where precious metal-rich Oxide Sands were previously identified in order to establish the lateral and strike length continuity of the formation. The initial drilling results indicate excellent grade continuity of the Oxide Sands formation over a strike length of 200 m and a lateral extension varying between 3 and 15 m. With gold equivalent grade up to 17.2 g/t over 0.85 m, drilling results also indicate the potential of the Oxide Sands formation to contain high-grade zones rich in gold and silver.

 

Oxide Sand Resource Estimation
The Company is currently awaiting assay results for the remaining 342 holes drilled during its 2,000 m sonic drilling campaign. Once results are made available, the Company will initiate a NI43-101 inferred resource estimation for the Oxide Sands.

 

Overview of the Wawa-Holdsworth Project

  • Neighbouring Alamos' Island Gold Mine, Argonaut's Magino Gold Project and Goldcorp’s Borden project

  • 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

Historic work by previous operators defined three gold targets on the Wawa-Holdsworth Project:

  • Greenstone-hosted quartz-carbonate vein deposit (Soocana Vein System and Reed-Booth Showing);

  • BIF-hosted gold deposits (gold-bearing pyrite zones in an Algoma-type iron formation);

  • Gold-bearing Oxide Sands developed from the weathering of the auriferous pyrite zones.

MacDonald Mines is focusing its near-term exploration program on the Oxide Sands. Assays results received so far support that the precious metals-rich sand formation occur over a 1.1 km strike length. Assays pending, the observation of Oxide Sands in the trenching and drilling west of line 1700 indicate that the favourable soil formation containing the Oxide Sands may have an overall strike length of approximately 2.1 km. This is corroborating the interpretation of the geophysical anomalies indicated by MacDonald’s MAX-MIN survey results.

Positive preliminary metallurgical results (see July 11, 2017);

  • The concentration ratio of gold in rougher flotation averaged 6.0:1

  • The concentration ratio of silver in rougher flotation averaged 5.2:1

  • Reduction of feed volume in rougher flotation by approximately 85-90%

  • The Oxide Sands can be processed by a simple crushing/flotation process

  • No caustic treatments are necessary

  • The processing will require low power requirements

  • The waste material is inert (>70 percent silica/quartz)

 

The soft and relatively unconsolidated Oxide Sands material can be extracted like an aggregate. The Company’s trenching and sonic drilling programs completed earlier this fall were designed to better define the Oxide Sands in preparation for their potential extraction.

 ....

...click here for full copy from source

   

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Excerpt of recent mining journal review:

 

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

Valuation Commentary: MacDonald Mines Exploration Ltd. (TSX-V: BMK) (US Listing: MCDMF) (Frankfurt: 3M72) is advancing a near-term mining production scenario at its Wawa-Holdsworth Gold Project 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). The risk-reward characteristics are highly advantageous for investors establishing a long position in BMK.V as the current market cap (~$7.2M Canadian, trading at ~10 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, leveraging its exploration teams expertise and experience in the Wawa district gold camp, and preparing for large-scale bulk sampling of the projects gold-laden Oxide Sands.

 

Oxide Sand resource estimation
The Company is currently awaiting the balance of assay results for 401 holes drilled during its 2,000 m sonic drilling program. Once results are made available, the Company will initiate a NI43-101 inferred resource estimation for the Oxide Sands.

 

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DECEMBER 5, 2017 NEWS HEADLINES:

MacDonald Mines Received First Results from Sonic Drill Program of Oxide Sands; Drills 7.92 g/t Gold over 3.23 Metres ...click here to view

 

The first drill results from MacDonald Mines' 2000m sonic drill program on the oxide sands were released on December 5, 2017 and they are spectacular, affirming the geological model the Company is working under.

 

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Fig. 1 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.

 

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.

Fig. 2 (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). Recent sampling by BMK.V has demonstrated >200% better results; see August 30, 2017 release "MacDonald Mines Receives Final Precious Metal Assays on Trenching of Oxide Sands, Wawa-Holdsworth Gold Project", and May 16, 2017 release "MacDonald Mines assays of the Oxide Sands results in significant increase in Gold content - individual samples contain up to 6 g/t Gold"; yielding an average grade of 2.95 g/t gold in one sample zone (section A) and 5.45 g/t gold in another (section BE) of the Oxide Sands.Mettallurgy was re-affirmed on July 11, 2017 (click here for the related news release)  Highlights from preliminary test work on the Oxide Sands include:
- The concentration ratio of gold in rougher flotation averaged 6.0:1
- The concentration ratio of silver in rougher flotation averaged 5.2:1
- Reduction of feed volume in rougher flotation by approximately 85-90%
- The Oxide Sands can be processed by a simple crushing/flotation process
- No caustic treatments are necessary
- The processing will require low power requirements
- The waste material is inert (>70 percent silica/quartz)

  

Oxide Sands host Gold-Silver-Platinum-Palladium

 

A bulk composite sample of the Oxide Sands composed of 4 different locations returned 0.15 g/t platinum, and 0.36 g/t palladium, in addition to the average grade of 5.45 g/t gold. 2 kg oxide sand samples contain up to 59.8 g/t silver; see related June 29, 2017 release entitled "Golden Goose Discovery Returns 11.85 g/t Gold from Grab Sample and Oxide Sands Found to Contain High-Grade Platinum, Palladium and Silver"

 

The exploration team is now undertaking a program of quantifying these zones which were 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).

 

Company intends to extract 50,000+ oz Gold from oxide sands: The Company announced 100% 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 making a quarterly gold payment to Noble equal to ten percent (10%) of the amount which is obtained by: (i) multiplying the production of gold from the Oxide Sands by the average gold price received during the quarter; and (ii) subtracting the sum of all deductions and any capital and operating costs being amortized over the life of the project, up to a maximum aggregate payment of 5,000 ounces of gold.

  
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. 

 

Market Equities Research Group projects (non NI 43-101) along the initial strike set of sulphide sands alone: ~81,700 oz Gold Equivalent (using US$17/oz Silver and US$1,200/oz Gold conversion) -- click here for full math in related market bulletin.

  

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 performed this winter, spring, and summer 2017 were geared towards affirming a voluminous and robust understanding of these Oxide Sands Zones -- the potential for substantial share price appreciation from current price levels appears in order as exploration findings/results affirm what is suspected.

 

The full mining journal review may be viewed at http://miningmarketwatch.net/bmk.htm online.

 

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

 

Company website: http://www.macdonaldmines.com

SEDAR filings: http://sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00004560

Mining Journal Review of MacDonald Mines: http://miningmarketwatch.net/bmk.htm

Q4-2017 research report on MacDonald Mines: http://sectornewswire.com/MarketEquitiesResearch-BMK-Oct-2017.pdf

 

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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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