Phoenix Matachewan Mines Inc.

Phoenix Matachewan Mines Inc.

January 07, 2008 10:27 ET

Phoenix Matachewan Mines Inc./Barville Zn-Ag-17 Anomalies Over 26.5 Km: A New Sturgeon Lake?

OTTAWA, ONTARIO--(Marketwire - Jan. 7, 2008) - Phoenix Matachewan Mines Inc. (TSX VENTURE:PMM) ("Phoenix" or "PMM") has completed its analysis of the new VTEM survey data for its Barville project, after further processing of the data by Abitibi Geophysics Ltd. in Val D'Or, Quebec.

Existing lines will be rehabilitated and extended in January, with ground geophysics and drilling to follow in February and March. The entire strike length of the anomalous zones is 26.5km (compared with only 16km at Sturgeon Lake), which are covered by Phoenix' 124 claims covering 5,078.4 ha in Barraute and Landrienne Townships.

The Barville property is remarkably similar geologically to the Sturgeon Lake camp in northwestern Ontario, which produced over 20mt of ore containing 8% zinc and 134g/t silver from five deposits. Phoenix has completed its compilation and analysis of the historic data as well as new airborne geophysical survey, and is developing the next phase of its program.

The similarities of the Barvue property to the Sturgeon Lake camp include evenly spaced coincident airborne and ground geophysical anomalies. Seventeen anomalies have been identified, spaced 2-3 km apart, each with extensive footwall alteration, including sodium depletion, Mn-rich carbonate, chloritoid and sericite alteration. Regular deposit spacing is a feature of many productive VMS districts, such as Matagami Lake, P.Q and Snow Lake, Manitoba.

At Phoenix' Barville property, three mineralized horizons are probably thrust-fault repetitions, similar to Sturgeon Lake where two horizons are related by thrust faulting. Historic diamond drilling generally missed these anomalies, but a few holes penetrated the lateral extensions of them, and these contained numerous intersections of 0.6 to 6% Zn and up to 160g/t Ag. One set of these includes the lateral extension of the Abcourt orebody.

Phoenix' claims surround the Abcourt-Barvue Mine of Abcourt Mines Inc., which announced in February 2007 that it has initiated the construction of an 1,800-tonne-per-day mine/mill complex, based on a indicated and measured resource of 6.8 million tonnes of ore containing 57.76 g/t silver and 3.11% zinc.

Dr. James M. Franklin, FRSC, P. Geo is the qualified person for Phoenix under National Policy 43-101.

"The statements in this Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not approved or disapproved of the information contained in this Press Release."

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