Phoenix Matachewan Mines Inc.

Phoenix Matachewan Mines Inc.

October 19, 2007 15:50 ET

Phoenix Matachewan Mines Inc.: Possible Deep Moly Porphyry Target Discovered and Expanded Epithermal Gold Targets-Bottle Creek, NV

OTTAWA, ONTARIO--(Marketwire - Oct. 19, 2007) - Phoenix Matachewan Mines (TSX VENTURE:PMM)("Phoenix" or "PMM") announced today that work over the past two years has identified an intriguing new exploration target, called Quinn, situated north of Phoenix's main Bottle Creek district project, in Humboldt County, northwestern Nevada. This potential molybdenum porphyry and possibly associated gold target is indicated by a series of chalcedonic high level epithermal veins hosted by mid Tertiary basalt and rhyodacite flows, stream sediment anomalies, soil geochemical anomalies and electrical geophysical survey anomalies.

Work continues through more surface geochemistry and geophysics to define drill locations so that permitting can be underway with a view to begin reverse circulation drilling prior to year end.


- The addition of molybdenum potential is a significant new development, and unrecognized by previous explorers.

- The Mo anomaly is currently contained within a 1.5 sq km sampling area, which suggests a very large hydrothermal system with associated soil geochemical indicators.

- PMM plans to drill-test this anomaly with a reverse circulation drill as soon as possible.

- This Mo anomaly on the Quinn Property is part of a much larger mineralized system that can be traced over a strike length of 30 km, all controlled by the partners, in which PMM will soon earn it's complete interest of 60% in the core area (67 sq km) and 50% in the regional area including Quinn (40 sq km.)

- Diamond drilling in the core area is currently being permitted.

Both the main Bottle Creek district and the Quinn area are on the same regional rift trend. A series of chalcedonic high level epithermal veins hosted by mid Tertiary basalt and rhyodacite flows, with associated stream sediment and soil geochemical anomalies and electrical geophysical survey anomalies all indicate the presence of a hydrothermal system at depth at Quinn. The outcropping veins may be part of a shallow (hundreds of meters) Au and Ag bearing epithermal system. The veins may also be the distal part of a more deeply buried porphyry system.

At Quinn, banded multi-centimeter veins occur sporadically within a north-trending ridge bounded by high angle Basin & Range normal faults over a strike length of approximately 2 kilometers. The highest vein density is at the north and central portions of the ridge. The veins strike both N-S and ENE. Maximum molybdenum and arsenic values in these veins are respectively 102 ppm and 1895 ppm.

A recent soil survey over a 1.5 km2 segment in the central portion of this trend identified approximately coincident Mo, Zn, Mn and As anomalies with maximum Mo in soil of 23 ppm, and maximum As in soil of 418 ppm. A subset of the soil samples have now been re-analyzed for fluorine, Zn, Mn and Mo, all possible indicators of a buried molybdenum porphyry system. A moderate fluorine anomaly is approximately coincident with the base metals (maximum F value is 1510 ppm).

A multi-point Au anomaly with a maximum value of 38 ppb is present in the SE corner of the soil grid, and bounded to the east by a normal fault which separates the Quinn ridge from a valley covered with alluvium, colluvium and lake sediments. The multi-point soil anomaly is immediately west of this fault, termed the Strandline Fault. This anomaly is not closed off and additional soil samples are being collected. The fault can be traced for a minimum strike length of 2 km, and can be projected farther to the north and south based on topography and geophysics.

Sophisticated and extensive dipole-dipole IP surveys by Zonge Engineering (of Tucson, AZ) in the main district detected numerous strong chargeability anomalies at depth, both associated with key structures, and reflecting broad zones of possible mineralization. The surveys in the Quinn area are much more limited (two NSAMT lines and one IP line) but these indicate the presence of high angle structures including the Strandline fault noted above, and broader deep resistivity anomalies. Further electrical geophysical surveys are planned.

Anomalous Mo is associated with certain epithermal Au systems in northern Nevada, notably Midas and Sleeper. Recent drilling in the main Bottle Creek district also encountered anomalous Mo values in highly altered and sulfidized basalt in the hanging wall of the Baldwin fault in drill hole BC06-2. The Baldwin fault bounds the east side of the Bottle Creek district.

It is uncertain whether the elevated Mo values in the Quinn target are the far-field reflection of a buried porphyry molybdenum system, or another example of an epithermal Au-Mo association. The numerous rhyolite domes in the main Bottle Creek district suggest the presence of a major magma source at depth. Whether such a source might have generated a highly evolved porphyry molybdenum system is as yet unclear. No deep drilling has been carried out in the Bottle Creek district, or anywhere on the Bottle Creek-Bilk Creek trend. A large rhyolite dome complex is present west of Quinn ridge, and a few small outcrops of rhyolitic quartz porphyry occur near the Strandline fault on the east side of Quinn ridge. No drilling has been carried out in the Quinn target area.

Work continues with more surface geochemistry and geophysics to define drill locations so that permitting can be initiated. PMM and GGE plan to begin a drill of the epithermal mineral potential of the Strandline fault to depths of a few hundred meters as soon as a rig can be located. Testing of a possible deep porphyry target will require much deeper holes.

The Quinn property is located at the NE corner of the Jackson Mountains, approximately 250km northeast of Reno, and 75 km northwest of Winnemucca. It is approximately 8 km north of the Bottle Creek mercury district. Gold and silver exploration dates from 1982 when the area was explored for Carlin-type gold mineralization. PMM is exploring at Bottle Creek because the high-grade, past-producing mercury mines are interpreted to be the surface manifestation of a deeper level epithermal system capable of depositing gold and silver.

The Quinn target area is within a block of 196 unpatented mining claims (approximately 16 sq km) held by Golden Gryphon USA (GG USA). Phoenix Matachewan Mines (PMM) will shortly complete earning a 50% interest in this claim block. The exploration effort is managed by Golden Gryphon Explorations, the parent company of GG USA, under the direction of Dr. Jeffrey T. Abbott. The main Bottle Creek property (802 claims, approximately 67 sq km) is under option from Golden Gryphon Explorations Inc. (GGE, a private company incorporated in British Columbia) whereby the Company has the option to earn 60% of the Bottle Creek property in Humboldt County, Nevada. GG USA controls a 16 km strike length of the Bottle Creek- mineral trend.

The geochemical assays were carried out by ALS Chemex in their Nevada and Vancouver, B.C. sample prep and analytical facilities, and include both Au by fire assay and multi element chemistry by standard ICP-MS procedures.

Dr. J.M. Franklin P. Geo is the qualified person under National Policy 43-101.

The statements in this Press Release may contain forward looking statements that may 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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